1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year.
Parker Hannifin's 1-Year ROIIC % for the quarter that ended in Sep. 2024 was -169.43%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Parker Hannifin's 1-Year ROIIC % or its related term are showing as below:
PH's 1-Year ROIIC % is ranked worse than 92.81% of 2922
companies
in the Industrial Products industry
Industry Median: 1.825
vs PH: -169.43
Parker Hannifin 1-Year ROIIC % Historical Data
The historical data trend for Parker Hannifin's 1-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 Parker Hannifin's 1-Year ROIIC %
For the Specialty Industrial Machinery subindustry, Parker Hannifin's 1-Year ROIIC %, along with its competitors' market caps and 1-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.
Parker Hannifin's 1-Year ROIIC % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Parker Hannifin's 1-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Parker Hannifin's 1-Year ROIIC % falls into.
Parker Hannifin 1-Year ROIIC % Calculation
Parker Hannifin's 1-Year ROIIC % for the quarter that ended in Sep. 2024 is calculated as:
1-Year ROIIC %
=
1-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
1-Year Incremental Invested Capital
=
( 3129.7073 (Sep. 2024) - 2664.1013 (Sep. 2023) )
/
( 26082.747 (Sep. 2024) - 26357.547 (Sep. 2023) )
=
465.606
/
-274.8
=
-169.43%***
* 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.
** TTM data of NOPAT and Invested Capital was used to calculate 1-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.
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.
Parker Hannifin 1-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Parker Hannifin's 1-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Parker Hannifin is an industrial conglomerate operating through two segments: diversified industrial, which serves a variety of end markets, and aerospace systems, which sells engine and actuation components. The diversified industrial segment consists of six groups, including engineered materials (sealing devices), filtration (filters and systems monitoring and removing contaminants from liquids and gases), fluid connectors (valves, couplings, and other fittings), instrumentation (flow manufacturing components and fluid control applications), and motion systems (hydraulic, pneumatic, and electromechanical components in industrial machinery and equipment). The segment boasts 17,100 independent distributors, and about 40% of its business occurs outside the United States.
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