3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Primo Water's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was -2.02%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Primo Water's 3-Year ROIIC % or its related term are showing as below:
PRMW's 3-Year ROIIC % is ranked worse than 67.96% of 103
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 11.28
vs PRMW: -2.02
Primo Water 3-Year ROIIC % Historical Data
The historical data trend for Primo Water's 3-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 Primo Water's 3-Year ROIIC %
For the Beverages - Non-Alcoholic subindustry, Primo Water's 3-Year ROIIC %, along with its competitors' market caps and 3-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.
Primo Water's 3-Year ROIIC % Distribution in the Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Primo Water's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Primo Water's 3-Year ROIIC % falls into.
Primo Water 3-Year ROIIC % Calculation
Primo Water's 3-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 113.1186 (Dec. 2023) - 110.32586 (Dec. 2020) )
/
( 2855.1 (Dec. 2023) - 3394.3 (Dec. 2020) )
=
2.79274
/
-539.2
=
-0.52%***
* 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 3-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.
Primo Water (NYSE:PRMW) 3-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.
Primo Water 3-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Primo Water's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Primo Water is a pure-play water provider with a variety of products and services, including water delivery, exchange, refill/filtration, and water dispensers in 21 countries, mostly in North America and Europe. The firm usually initiates the customer relationship with the sale of water dispensers, and then generates recurring revenue via the water direct and exchange services (two thirds of total sales) by delivering large-format (typically three gallons or greater) water bottles to residential and commercial customers for use atop or inside the dispensers. Primo generates 75% of revenue and all its profits in North America, while its European operation has yet to turn a profit.
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