Return on invested capital
Our aim is to generate a positive spread of the return on invested capital (ROIC) over the post-tax WACC (8.4% for the Group). PostNL defines ROIC as net operating profit less adjusted tax (NOPLAT) divided by invested capital. For 2024, the ROIC for the Group was 2.4% (2023: 5.3%). The negative spread over the WACC in 2024 was (600) basis points. The decrease of the ROIC compared to 2023 is for a large part explained by a decrease in the NOPLAT. Invested capital slightly decreased versus 2023 due to a lower level of excess cash (redemption of a bond of €353 million versus issuance of a new bond of €297 million).
PostNL Return on invested capital in € million, unless indicated otherwise
2023 - 2024
| Year ended at 31 December | 2023 | 2024 |
|---|---|---|
| Operating income | 84 | 37 |
| Less adjusted tax | (22) | (10) |
| Net operating profit less adjusted tax (NOPLAT) | 63 | 28 |
| Total equity | 200 | 205 |
| Adjusted net debt | 462 | 474 |
| Add back cash and cash equivalents | 518 | 453 |
| Invested capital | 1,179 | 1,132 |
| Return on invested capital (ROIC) | 5.3% | 2.4% |