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.
Dnow's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was 72.59%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Dnow's 3-Year ROIIC % or its related term are showing as below:
DNOW's 3-Year ROIIC % is ranked better than 90.54% of 2906
companies
in the Industrial Products industry
Industry Median: 5.605
vs DNOW: 72.59
Dnow 3-Year ROIIC % Historical Data
The historical data trend for Dnow'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.
For the Specialty Industrial Machinery subindustry, Dnow'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.
Dnow's 3-Year ROIIC % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Dnow's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Dnow's 3-Year ROIIC % falls into.
Dnow 3-Year ROIIC % Calculation
Dnow'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**
=
( 251.594 (Dec. 2023) - -98.307 (Dec. 2020) )
/
( 899 (Dec. 2023) - 417 (Dec. 2020) )
=
349.901
/
482
=
72.59%***
* 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.
Dnow (NYSE:DNOW) 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.
Dnow 3-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Dnow's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Dnow Inc is a company engaged in worldwide supplying of energy and industrial products and packaged, engineered process and production equipment with a legacy of over one sixty years. They offer a broad set of supply chain solutions combined with a suite of digital solutions branded as DigitalNOW that provide customers world-class technology for digital commerce, data and information management. Its locations provide products and solutions to exploration and production companies, midstream transmission and storage companies, refineries, chemical companies, utilities, mining, municipal water, manufacturers, engineering and construction companies as well as companies operating in the decarbonization, energy transition and renewables end markets.
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