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RM (LSE:RM.) 3-Year ROIIC % : 1,588.28% (As of Nov. 2023)


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What is RM 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. RM's 3-Year ROIIC % for the quarter that ended in Nov. 2023 was 1,588.28%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

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

LSE:RM.'s 3-Year ROIIC % is ranked better than
99.08% of 2601 companies
in the Software industry
Industry Median: 1.27 vs LSE:RM.: 1588.28

RM 3-Year ROIIC % Historical Data

The historical data trend for RM'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.

RM 3-Year ROIIC % Chart

RM Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.44 53.48 -17.07 -14.32 1,588.28

RM Semi-Annual Data
May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23
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 -17.07 - -14.32 - 1,588.28

Competitive Comparison of RM's 3-Year ROIIC %

For the Software - Application subindustry, RM'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.


RM's 3-Year ROIIC % Distribution in the Software Industry

For the Software industry and Technology sector, RM's 3-Year ROIIC % distribution charts can be found below:

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



RM 3-Year ROIIC % Calculation

RM's 3-Year ROIIC % for the quarter that ended in Nov. 2023 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( -1.449276 (Nov. 2023) - 10.3992714 (Nov. 2020) )/( 107.802 (Nov. 2023) - 108.548 (Nov. 2020) )
=-11.8485474/-0.746
=1,588.28%***

* 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.


RM  (LSE:RM.) 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.


RM 3-Year ROIIC % Related Terms

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


RM (LSE:RM.) Business Description

Traded in Other Exchanges
Address
142B Park Drive, Milton Park, Milton, Abingdon, Oxfordshire, GBR, OX14 4SE
RM PLC provides resources, software, and services to the education sector. The company is structured into three operating divisions: RM Resources, RM Assessment, and RM Technology. The RM Resources division consists of the operating business of TTS. TTS provides education resources used in schools through a predominantly direct marketing business model. The RM Assessment business provides IT software and services to exam boards and professional bodies to allow e-assessment. RM Technology division focuses on supplying IT software and services to schools and colleges. Its primary geographic markets are the United Kingdom, Europe, North America, Asia, the Middle East, and the Rest of the world.

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