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LPLA (LPL Financial Holdings) 3-Year ROIIC % : 21.33% (As of Dec. 2023)


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What is LPL Financial Holdings 3-Year ROIIC %?

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. LPL Financial Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was 21.33%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for LPL Financial Holdings's 3-Year ROIIC % or its related term are showing as below:

LPLA's 3-Year ROIIC % is ranked better than
76.69% of 652 companies
in the Capital Markets industry
Industry Median: 1.895 vs LPLA: 21.33

LPL Financial Holdings 3-Year ROIIC % Historical Data

The historical data trend for LPL Financial 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.

* Premium members only.

LPL Financial Holdings 3-Year ROIIC % Chart

LPL Financial Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.97 35.26 1.57 17.43 21.33

LPL Financial Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
3-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 21.33 - - -

Competitive Comparison of LPL Financial Holdings's 3-Year ROIIC %

For the Capital Markets subindustry, LPL Financial 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.


LPL Financial Holdings's 3-Year ROIIC % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where LPL Financial Holdings's 3-Year ROIIC % falls into.



LPL Financial Holdings 3-Year ROIIC % Calculation

LPL Financial 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**
=( 1204.105302 (Dec. 2023) - 552.4645062 (Dec. 2020) )/( 6711.704 (Dec. 2023) - 3657.37 (Dec. 2020) )
=651.6407958/3054.334
=21.33%***

* 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.


LPL Financial Holdings  (NAS:LPLA) 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.


LPL Financial Holdings 3-Year ROIIC % Related Terms

Thank you for viewing the detailed overview of LPL Financial Holdings's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


LPL Financial Holdings Business Description

Traded in Other Exchanges
Address
4707 Executive Drive, San Diego, CA, USA, 92121
LPL Financial Holdings is an independent broker/dealer that provides a platform of proprietary technology, brokerage, and investment advisory services to financial advisors and institutions. As of the end of June 2024, the company had over 23,000 advisors on its platform managing $1.5 trillion of client assets. The company doesn't have material operations outside of the United States.
Executives
Dan H. Arnold officer: MD & Division President, FIS C/O LPL INVESTMENT HOLDINGS INC., ONE BEACON STREET, BOSTON MA 02108
Matthew J Audette officer: Chief Financial Officer C/O DAVIS POLK & WARDWELL, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Matthew Enyedi officer: Managing Director C/O LPL FINANCIAL HOLDINGS, INC., 75 STATE STREET, 22ND FLOOR, BOSTON MA 02109
Greg Gates officer: Managing Director C/O LPL FINANCIAL, 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Kabir Sethi officer: Managing Director C/O LPL FINANCIAL, 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Sallie R. Larsen officer: MD, Chief Human Cap. Officer ONE BEACON STREET, 22ND FLOOR, BOSTON MA 02018
Aneri Jambusaria officer: Managing Director C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Richard Steinmeier officer: Managing Director C/O LPL FINANCIAL HOLDINGS, INC., 75 STATE STREET, 22ND FLOOR, BOSTON MA 02109
Althea Brown officer: Managing Director C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Glavin William Francis Jr director 6803 SOUTH TUCSON WAY, CENTENNIAL CO 80112
Richard P Schifter director 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Michelle Oroschakoff officer: MD, Chief Risk Officer 75 STATE STREET, 24TH FLOOR, BOSTON MA 02109
Albert J Ko director C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Brent Simonich officer: EVP, CAO and Treasurer C/O E*TRADE FINANCIAL CORP., 11 TIMES SQUARE, 32ND FLOOR, NEW YORK NY 10036-9992
Edward Fandrey officer: Managing Director C/O LPL FINANCIAL, 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121