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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.
Ribbon Communications's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 0.00%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Ribbon Communications's 3-Year ROIIC % or its related term are showing as below:
RBBN's 3-Year ROIIC % is not ranked *
in the Software industry.
Industry Median: 5.345 * Ranked among companies with meaningful 3-Year ROIIC % only.
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.
Ribbon Communications 3-Year ROIIC % Related Terms
Ribbon Communications 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Ribbon Communications'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.
RBBN vs XPER, SVCO, RMNI: 3-Year ROIIC % Comparison
For the Software - Application subindustry, Ribbon Communications'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.
Ribbon Communications 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Ribbon Communications's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Ribbon Communications's 3-Year ROIIC % falls into.
Ribbon Communications's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 0 (Dec. 2025) - -27.1826755 (Dec. 2022) )
/
( 983.108 (Dec. 2025) - 1033.216 (Dec. 2022) )
=
/
-50.108
=
0.00%***
* 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.
Ribbon Communications (RBBN) has a 3-Year ROIIC % of 0.00 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Ribbon Communications and its competitors. According to the industry distribution chart, Ribbon Communications ranks #999999 out of 2624 companies in the Software industry.
Is Ribbon Communications' 3-Year ROIIC % too high?
Ribbon Communications' current 3-Year ROIIC % is 0.00. Based on the distribution chart, Ribbon Communications ranks #999999 out of 2624 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Ribbon Communications has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ribbon Communications' 3-Year ROIIC % compare to XPER and SVCO?
According to the Software industry distribution chart, Ribbon Communications ranks #999999 out of 2624 companies for 3-Year ROIIC %. This places Ribbon Communications in the lower half of its industry. The industry median 3-Year ROIIC % is 5.35. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Software company?
The median 3-Year ROIIC % among Software companies is 5.35, based on 2,624 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Ribbon Communications and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ribbon Communications's current 3-Year ROIIC % is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ribbon Communications stock overvalued right now?
Based on GuruFocus' analysis, Ribbon Communications (RBBN) is currently considered Possible Value Trap. The stock's GF Value™ is $2.99, compared to a current price of $2.02 — trading 32.4% below its estimated fair value. The current 3-Year ROIIC % is 0.00. Ribbon Communications' overall GF Score™ is 56/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Ribbon Communications (RBBN), the current 3-Year ROIIC % is 0.00 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ribbon Communications (RBBN) Overvalued in 2026?
Based on GuruFocus' analysis, Ribbon Communications stock appears to be undervalued.
The current stock price of $2.02 is trading 32.4% below its estimated GF Value™ of $2.99.
GuruFocus considers Ribbon Communications to be Possible Value Trap.
Key valuation signals for RBBN:
3-Year ROIIC %: 0.00
GF Value™: $2.99 vs. price of $2.02 (32.4% below fair value)
No single metric tells the full story. See the RBBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ribbon Communications Inc provides communications technology to service providers and enterprises, offering software and high-performance hardware products, network solutions, and services for secure data and voice communications, as well as high-bandwidth networking for residential and enterprise customers across industries such as finance, education, government, utilities, and transportation. It operates through two segments: Cloud and Edge, which generate maximum revenue and deliver software-centric, cloud-native solutions for VoIP, VoLTE, VoNR, and unified communications, and IP Optical Networks, which support growing telecommunications traffic from 5G, distributed cloud computing, and other applications. The Company generates the majority of its revenue from the United States.
56GF Score
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