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.
Deere's 10-Year ROIIC % for the quarter that ended in Oct. 2024 was 16.82%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Deere's 10-Year ROIIC % or its related term are showing as below:
DE's 10-Year ROIIC % is ranked better than 77.32% of 194
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 5.855
vs DE: 16.82
Deere 10-Year ROIIC % Historical Data
The historical data trend for Deere'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 Farm & Heavy Construction Machinery subindustry, Deere'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.
Deere's 10-Year ROIIC % Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Deere's 10-Year ROIIC % falls into.
Deere 10-Year ROIIC % Calculation
Deere's 10-Year ROIIC % for the quarter that ended in Oct. 2024 is calculated as:
10-Year ROIIC %
=
10-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
10-Year Incremental Invested Capital**
=
( 8772.51 (Oct. 2024) - 3065.3875 (Oct. 2014) )
/
( 84299 (Oct. 2024) - 50365.3 (Oct. 2014) )
=
5707.1225
/
33933.7
=
16.82%***
* 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.
Deere (NYSE:DE) 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.
Deere 10-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Deere's 10-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry in their green and yellow livery. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through an extensive dealer network, which includes over 2,000 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.
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