10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
Arthur J. Gallagher's 10-Year ROIIC % for the quarter that ended in Dec. 2023 was 2.59%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Arthur J. Gallagher's 10-Year ROIIC % or its related term are showing as below:
AJG's 10-Year ROIIC % is ranked better than 57.14% of 280
companies
in the Insurance industry
Industry Median: 1.65
vs AJG: 2.59
Arthur J. Gallagher 10-Year ROIIC % Historical Data
The historical data trend for Arthur J. Gallagher's 10-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.
Competitive Comparison of Arthur J. Gallagher's 10-Year ROIIC %
For the Insurance Brokers subindustry, Arthur J. Gallagher's 10-Year ROIIC %, along with its competitors' market caps and 10-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.
Arthur J. Gallagher's 10-Year ROIIC % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Arthur J. Gallagher's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Arthur J. Gallagher's 10-Year ROIIC % falls into.
Arthur J. Gallagher 10-Year ROIIC % Calculation
Arthur J. Gallagher's 10-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:
10-Year ROIIC %
=
10-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
10-Year Incremental Invested Capital**
=
( 1515.35241 (Dec. 2023) - 335.2584 (Dec. 2013) )
/
( 50644.3 (Dec. 2023) - 5115 (Dec. 2013) )
=
1180.09401
/
45529.3
=
2.59%***
* 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 10-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.
Arthur J. Gallagher (NYSE:AJG) 10-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.
Arthur J. Gallagher 10-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Arthur J. Gallagher's 10-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Arthur J. Gallagher (Arthur J. Gallagher) Business Description
Arthur J. Gallagher & Co provides insurance brokerage and consulting services to middle-market entities around the world. The majority of the company's revenue comes from its brokerage segment, where it negotiates and places its customers with insurance companies that provide, among other types, property/casualty and health insurance. The company's primary source of revenue in the brokerage segment is commissioning from the insurance companies. The company also generates significant revenue in its corporate segment, which includes clean energy investment and other investment income. The company generates most of its revenue in the United States, with the remaining revenue coming primarily from Australia, Bermuda, Canada, the Caribbean, New Zealand, and the United Kingdom.
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