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.
Vertiv Holdings Co's 3-Year ROIIC % for the quarter that ended in Dec. 2024 was 115.14%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Vertiv Holdings Co's 3-Year ROIIC % or its related term are showing as below:
VRT's 3-Year ROIIC % is ranked better than 94.44% of 2934
companies
in the Industrial Products industry
Industry Median: 5.685
vs VRT: 115.14
Vertiv Holdings Co 3-Year ROIIC % Historical Data
The historical data trend for Vertiv Holdings Co'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 Vertiv Holdings Co's 3-Year ROIIC %
For the Electrical Equipment & Parts subindustry, Vertiv Holdings Co'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.
Vertiv Holdings Co's 3-Year ROIIC % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Vertiv Holdings Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Vertiv Holdings Co's 3-Year ROIIC % falls into.
Vertiv Holdings Co 3-Year ROIIC % Calculation
Vertiv Holdings Co's 3-Year ROIIC % for the quarter that ended in Dec. 2024 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 895.2596 (Dec. 2024) - 196.59472 (Dec. 2021) )
/
( 5937.9 (Dec. 2024) - 5331.1 (Dec. 2021) )
=
698.66488
/
606.8
=
115.14%***
* 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.
Vertiv Holdings Co (NYSE:VRT) 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.
Vertiv Holdings Co 3-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Vertiv Holdings Co's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Vertiv has roots tracing back to 1946 when its founder, Ralph Liebert, developed an air-cooling system for mainframe data rooms. As computers started making their way into commercial applications in 1965, Liebert developed one of the first computer room air conditioning, or CRAC, units, enabling the precise control of temperature and humidity. The firm has slowly expanded its data center portfolio through internal product development and the acquisition of thermal and power management products like condensers, busways, and switches. Vertiv has global operations today; its products can be found in data centers in most regions throughout the world.
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