GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Downer EDI Ltd (ASX:DOW) » Definitions » 5-Year ROIIC %

Downer EDI (ASX:DOW) 5-Year ROIIC % : -15.16% (As of Jun. 2023)


View and export this data going back to 1990. Start your Free Trial

What is Downer EDI 5-Year ROIIC %?

5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year. Downer EDI's 5-Year ROIIC % for the quarter that ended in Jun. 2023 was -15.16%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Downer EDI's 5-Year ROIIC % or its related term are showing as below:

ASX:DOW's 5-Year ROIIC % is ranked worse than
77.75% of 1573 companies
in the Construction industry
Industry Median: 2.63 vs ASX:DOW: -15.16

Downer EDI 5-Year ROIIC % Historical Data

The historical data trend for Downer EDI's 5-Year ROIIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Downer EDI 5-Year ROIIC % Chart

Downer EDI Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
5-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.25 -1.68 1.79 7.87 -15.16

Downer EDI Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
5-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 7.87 - -15.16 -

Competitive Comparison of Downer EDI's 5-Year ROIIC %

For the Engineering & Construction subindustry, Downer EDI's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Downer EDI's 5-Year ROIIC % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Downer EDI's 5-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Downer EDI's 5-Year ROIIC % falls into.



Downer EDI 5-Year ROIIC % Calculation

Downer EDI's 5-Year ROIIC % for the quarter that ended in Jun. 2023 is calculated as:

5-Year ROIIC %=5-Year Incremental Net Operating Profit After Taxes (NOPAT)**/5-Year Incremental Invested Capital**
=( 183.75338 (Jun. 2023) - 71.96496 (Jun. 2018) )/( 4517.4 (Jun. 2023) - 5254.6 (Jun. 2018) )
=111.78842/-737.2
=-15.16%***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Downer EDI  (ASX:DOW) 5-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Downer EDI 5-Year ROIIC % Related Terms

Thank you for viewing the detailed overview of Downer EDI's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Downer EDI (ASX:DOW) Business Description

Traded in Other Exchanges
Address
39 Delhi Road, Level 2, Triniti III, Triniti Business Campus, North Ryde, NSW, AUS, 2113
Downer operates engineering, construction, and maintenance; transport; technology and communications; utilities; and rail units. The future of Downer is focused on urban services, and mining and high-risk construction businesses have been sold. The engineering, construction, and maintenance business had exposure to mining and energy projects through consulting services. The mining division had provided contracted mining services. The rail division services and maintains passenger rolling stock, including locomotives and wagons.

Downer EDI (ASX:DOW) Headlines

From GuruFocus

Q1 2022 Dow Inc Earnings Call Transcript

By GuruFocus Research 01-22-2024

Q3 2022 Dow Inc Earnings Call Transcript

By GuruFocus Research 01-22-2024

Dow Inc at JPMorgan Industrials Conference Transcript

By GuruFocus Research 01-22-2024

Q2 2022 Dow Inc Earnings Call Transcript

By GuruFocus Research 01-22-2024

Dow Inc Investor Day Transcript

By GuruFocus Research 01-22-2024

Q2 2020 Dow Inc Earnings Call Transcript

By GuruFocus Research 01-22-2024