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.
Valhi's 10-Year ROIIC % for the quarter that ended in Dec. 2023 was -23.54%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Valhi's 10-Year ROIIC % or its related term are showing as below:
VHI's 10-Year ROIIC % is ranked worse than 89.19% of 1453
companies
in the Chemicals industry
Industry Median: 5.43
vs VHI: -23.54
Valhi 10-Year ROIIC % Historical Data
The historical data trend for Valhi'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.
For the Chemicals subindustry, Valhi'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.
Valhi's 10-Year ROIIC % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Valhi's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Valhi's 10-Year ROIIC % falls into.
Valhi 10-Year ROIIC % Calculation
Valhi'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**
=
( 6.5428 (Dec. 2023) - -140.30016 (Dec. 2013) )
/
( 1900.1 (Dec. 2023) - 2524 (Dec. 2013) )
=
146.84296
/
-623.9
=
-23.54%***
* 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.
Valhi (NYSE:VHI) 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.
Valhi 10-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Valhi's 10-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Valhi Inc is a holding company that provides chemicals, security products, waste management systems, and real estate development and management through its subsidiaries. It operates its business in three segments, which are Chemicals, Component Products, and Real Estate Management and Development. Through its segments the company produces and markets titanium dioxide pigments which generate the majority of the company revenues; manufactures security products; processes, treats, stores, and disposes of radioactive and toxic waste; and provides real estate management services. Valhi derives maximum revenue from the Chemicals segment. The company has a presence in Europe, North America, Asia Pacific, and the Rest of the World.
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