ITC (LUX:ITC) 5-Year ROIIC % : 71.92% (As of Mar. 2023)

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What is ITC 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. ITC's 5-Year ROIIC % for the quarter that ended in Mar. 2023 was 71.92%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

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

LUX:ITC's 5-Year ROIIC % is ranked better than
83.72% of 43 companies
in the Tobacco Products industry
Industry Median: 3.72 vs LUX:ITC: 71.92

ITC 5-Year ROIIC % Historical Data

The historical data trend for ITC'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.

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ITC 5-Year ROIIC % Chart

ITC Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

5-Year ROIIC %

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12.27

29.13

22.12

29.83

71.92

ITC Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
5-Year ROIIC %	Get a 7-Day Free Trial															-	71.92	-	-	-

Competitive Comparison of ITC's 5-Year ROIIC %

For the Tobacco subindustry, ITC'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.

ITC's 5-Year ROIIC % Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, ITC's 5-Year ROIIC % distribution charts can be found below:

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

ITC 5-Year ROIIC % Calculation

ITC's 5-Year ROIIC % for the quarter that ended in Mar. 2023 is calculated as:

5-Year ROIIC %	=	5-Year Incremental Net Operating Profit After Taxes (NOPAT)^**	/	5-Year Incremental Invested Capital^**
	=	( 2183.2409156 (Mar. 2023) - 1551.3293774 (Mar. 2018) )	/	( 7074.239 (Mar. 2023) - 7264.748 (Mar. 2018) )
	=	631.9115382	/	-190.509
	=	-331.70%^***

** 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.

ITC (LUX:ITC) 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.

ITC 5-Year ROIIC % Related Terms

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

ITC (LUX:ITC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » ITC Ltd (LUX:ITC) » Definitions » 5-Year ROIIC %

Comparable Companies

Traded in Other Exchanges

ITC:India 500875:India

Address

37 Jawaharlal Nehru Road, Virginia House, Kolkata, WB, IND, 700 071

Website

https://www.itcportal.com

ITC Ltd is an Indian conglomerate that primarily operates in the consumer goods space, particularly cigarettes. The company operates in four main business segments: Fast Moving Consumer Goods; Hotels; Paperboards, Paper, and Packaging; and Agri-Business. Roughly three-quarters of the company's total revenue comes from the Fast Moving Consumer Goods Business, which is dominated by cigarettes but also includes branded packaged foods, personal care products, and other categories. The company generates the vast majority of its revenue in India.