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.
Herc Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was 10.65%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Herc Holdings's 3-Year ROIIC % or its related term are showing as below:
HRI's 3-Year ROIIC % is ranked better than 59.13% of 991
companies
in the Business Services industry
Industry Median: 5.74
vs HRI: 10.65
Herc Holdings 3-Year ROIIC % Historical Data
The historical data trend for Herc Holdings'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 Herc Holdings's 3-Year ROIIC %
For the Rental & Leasing Services subindustry, Herc Holdings'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.
Herc Holdings's 3-Year ROIIC % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Herc Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Herc Holdings's 3-Year ROIIC % falls into.
Herc Holdings 3-Year ROIIC % Calculation
Herc Holdings'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**
=
( 514.6869 (Dec. 2023) - 161.88744 (Dec. 2020) )
/
( 6644 (Dec. 2023) - 3330 (Dec. 2020) )
=
352.79946
/
3314
=
10.65%***
* 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.
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.
Herc Holdings 3-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Herc Holdings's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Herc Holdings is an equipment rental company that was spun out of Hertz Global in 2016. It is currently the third-largest equipment rental company (4% market share) in North America, after United Rentals and Sunbelt Rentals, with a fleet size of $6.4 billion. It serves commercial and residential construction customers, the environmental sector, industrial entities, and entertainment production companies. During much of its 50-year-plus history, the company has rented equipment such as aerial lifts to its customers for intermittent use. More recently, it has broadened its catalog to include a host of specialty items. Separately, Herc Holdings' strategy now incorporates long-term rentals to industrial customers where Herc maintains its own staff at the customer site.
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