What is Tempur Sealy International 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.
Tempur Sealy International's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was 3.78%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Tempur Sealy International's 3-Year ROIIC % or its related term are showing as below:
TPX's 3-Year ROIIC % is ranked better than 50.6% of 417
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 3.65
vs TPX: 3.78
Tempur Sealy International 3-Year ROIIC % Historical Data
* 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 Tempur Sealy International's 3-Year ROIIC %
For the Furnishings, Fixtures & Appliances subindustry, Tempur Sealy International'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.
Tempur Sealy International's 3-Year ROIIC % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Tempur Sealy International's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Tempur Sealy International's 3-Year ROIIC % falls into.
Tempur Sealy International 3-Year ROIIC % Calculation
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 456.78598 (Dec. 2023) - 398.73924 (Dec. 2020) )
/
( 3982.3 (Dec. 2023) - 2445.1 (Dec. 2020) )
=
58.04674
/
1537.2
=
3.78%***
* 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.
Tempur Sealy International (NYSE:TPX) 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.
Tempur Sealy International 3-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Tempur Sealy International's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tempur Sealy International Inc is a bedding provider. The firm develops and distributes bedding products globally through its North America and international segments (Europe, Asia Pacific, and Latin America). Tempur Sealy's products are divided into the bedding and other product categories. The bedding category comprises the majority of net sales. The primary distribution channels of the company within each segment are retail (including furniture and bedding retailers, department stores, and warehouse clubs) and other (including e-commerce platforms, company-owned stores, and third-party distributors). Some brands of the firm include Tempur, Tempur-Pedic, Sealy, and Stearns and Foster. The cany generates revenue from sales from North America.
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