PromptSharp › Prompt Library › Finance › ROIC vs WACC value-creation check

Financial Analysis & ModelingFREE

ROIC vs WACC value-creation check

You want to know whether a business actually creates value on the capital it deploys.

The prompt — copy and run it

You are an analyst assessing value creation for [COMPANY]. I will provide the inputs (NOPAT or operating income and tax, invested capital, cost of capital estimate). Produce:
1. An ROIC calculation shown step by step in a TABLE, with the invested-capital definition you used stated explicitly.
2. The ROIC vs WACC SPREAD and whether the company is creating or destroying economic value.
3. The TREND in ROIC over the periods provided and the driver (margin vs capital turnover, via a simple DuPont-style split).
4. The 2-3 inputs most worth verifying (especially the invested-capital and WACC definitions).
Use only figures I provide; state every definitional choice and never fabricate a cost of capital.

Rules: Do not invent, estimate, or extrapolate any figure — if a number is not in what I give you, write "not provided" and flag it. Mark every claim I should verify externally before relying on it. Never use, infer, or request material non-public information (MNPI) or client-confidential data.
Got what you needed? Get a sharp, copy-paste prompt like this in your inbox every day — start PromptSharp Daily, free →

How to use this prompt

  1. Copy the full prompt above with the Copy button.
  2. Fill in your inputs. Replace each bracketed placeholder with your specifics: [COMPANY]
  3. Paste into ChatGPT, Claude, or Gemini and run. Read the reality guardrail below before you act on the output.

Why this prompt works

ROIC vs WACC is the cleanest single test of whether growth is worth anything; making the invested-capital definition explicit and splitting the trend into margin vs turnover is where the real insight lives.

Get a prompt like this every day

The PromptSharp Finance ships one desk-ready prompt every weekday — free on the web today. Free forever. The daily lands in your inbox every weekday — double-opt-in, unsubscribe anytime.

Subscribe free → Read a sample issue

Want the full PromptSharp Finance, not just the free prompt? Vertical Pro is the full Pro benefit set for ONE vertical. See what Pro includes.

Start your 14-day free trial →

Card required. Free for 14 days, then $14.99/month — renews automatically until you cancel. Cancel anytime before day 14 and you won’t be charged. One free trial per card. Manage or cancel anytime.

Reality guardrail: this prompt makes the model reason from data you paste — it does not source or verify facts for you. Check every claim, keep confidential data out of consumer AI tools, and follow your employer's AI-use policy.

Frequently asked

When should I use this prompt?

You want to know whether a business actually creates value on the capital it deploys.

Why does this prompt work?

ROIC vs WACC is the cleanest single test of whether growth is worth anything; making the invested-capital definition explicit and splitting the trend into margin vs turnover is where the real insight lives.

Related Finance prompts

Finance

Working-capital & cash-conversion diagnostic

You want to know whether reported earnings are actually converting to cash.…

Finance

Credit / debt-capacity & covenant-headroom model review

You need to know whether a business can carry its debt and how much headroom it has before covenants bite.…

Finance

Budget vs actual variance commentary for the month-end close

The month has closed and leadership wants to know what moved versus budget, why, and whether it changes the full-year outlook.…

Finance

Financial statement analysis: tie the three statements together

You have a company's income statement, balance sheet and cash flow statement and want to know whether they tell one consistent sto…

Finance

Accretion / dilution first-pass sanity check

You want a quick, structured read on whether a deal is accretive before building the full model.…

Finance

LBO feasibility + debt-capacity quick screen

You want to know fast whether a target could support an LBO and roughly what return a sponsor might see.…

Finance

Event-vol / skew relative-value read

A catalyst is coming and you want a structured read on whether implied vol and skew look rich or cheap, framed honestly.…

All Finance free prompts

The PromptSharp Finance page — five full free prompts plus today's issue.

PromptSharp Daily — free

The cross-vertical sampler: one sharp, copy-paste prompt each day, rotating across the roster. Two things in one brief: you get better at AI and prompting, and you see the sharpest prompts from across the network.

Double-opt-in. Unsubscribe anytime. No spam, ever.

Better together
Make prompts remember you: Brainfile

Even a sharp prompt starts from zero unless your AI knows you. Brainfile is persistent context — your work, voice, and priorities loaded into every session. Brainfile is the memory; PromptSharp is the playbook. Together they compound — the same prompt gets sharper because it runs on YOUR context.

Set up your brainfile →

Want both? The All-Access + Brainfile annual bundle covers the pair.

PromptSharp — sharp prompts for professionals.
Home · Daily Issues · Prompt Library · Glossary · Pricing · For Teams & Universities · Archive · PromptFluent alternative · Newsletter · Privacy · Terms · Refunds
Verticals
Marketing · Sales · Dev & Engineering · Finance · Product Management · Vibe Coding · C-suite · Consulting & Strategy · Law · CPG · Personal Finance · Career & Job Search · Trading · Health & Fitness · Students · Focus & Productivity · Learning · Travel Planning
Talk to us
feedback@promptsharp.ai
support@promptsharp.ai
Also from us
Entry Point Trading
Free weekly stocks to watch —
how our model ranks the S&P 500 and Nasdaq 100.
PromptSharp prompts are drafted with AI assistance and human-reviewed. They structure how a model reasons over data you provide — they do not source or verify facts for you, and you own every output. Nothing here is financial, legal, tax, or investment advice. Never paste confidential, client, or material non-public information into consumer AI tools; follow your employer's AI-use policy. © 2026 PromptSharp.