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.
Stepan Co's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was -7.95%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Stepan Co's 3-Year ROIIC % or its related term are showing as below:
SCL's 3-Year ROIIC % is ranked worse than 72.43% of 1527
companies
in the Chemicals industry
Industry Median: 4
vs SCL: -7.95
Stepan Co 3-Year ROIIC % Historical Data
The historical data trend for Stepan Co'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 Stepan Co's 3-Year ROIIC %
For the Specialty Chemicals subindustry, Stepan Co'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.
Stepan Co's 3-Year ROIIC % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Stepan Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Stepan Co's 3-Year ROIIC % falls into.
Stepan Co 3-Year ROIIC % Calculation
Stepan Co'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)**
* 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.
Stepan Co (NYSE:SCL) 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.
Stepan Co 3-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Stepan Co's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Stepan Co manufactures and sells a variety of chemicals and chemical-based products. The company organizes itself into three segments based on product type. The surfactants segment, which generates the majority of revenue, sells cleaning agents used in detergents, shampoos, body wash, fabric softeners, toothpastes, and other personal-care products. Surfactants are chemical agents that affect the interaction between two surfaces. The polymers segment sells polyurethane used to manufacture rigid foam for thermal insulation, as well as phthalic anhydride used to make plastic components for the construction, automotive, and boating industries. The specialty products segment sells chemicals used in food and flavoring. Most of Stepan's revenue comes from the United States.
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