Good Company’s ROIC from operations in 2012 differs from that in 2011. Which of the following makes the largest contribution to the change?

To answer your question effectively, let’s analyze the potential factors that could affect the Return on Invested Capital (ROIC) from operations and identify the largest contributor to any changes between the years 2011 and 2012.

Key Factors Affecting ROIC

1. Revenue Growth: An increase or decrease in revenues can significantly impact ROIC.
2. Operating Margin: Changes in operating income relative to revenue can also contribute to the changes in ROIC.
3. Capital Expenditure: Investment in capital assets can affect the invested capital, thus influencing ROIC.
4. Working Capital Management: Efficient or inefficient management of working capital can alter the capital available for operations.
5. Tax Rates: Changes in tax obligations can impact net operating profit after tax (NOPAT), influencing ROIC.

Conclusion

To determine the largest contribution to the change in ROIC from 2011 to 2012, a detailed comparison of these aforementioned factors would be needed. Typically, the most variable among these aspects, such as operating margin or revenue growth, tends to have the most significant impact.

If you have specific details about the changes in revenue, operating income, capital investment, etc., I could provide a more precise analysis.