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.
Rheinmetall AG's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was 28.36%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Rheinmetall AG's 3-Year ROIIC % or its related term are showing as below:
XTER:RHM's 3-Year ROIIC % is ranked better than 82.71% of 295
companies
in the Aerospace & Defense industry
Industry Median: 1.51
vs XTER:RHM: 28.36
Rheinmetall AG 3-Year ROIIC % Historical Data
The historical data trend for Rheinmetall AG'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 Rheinmetall AG's 3-Year ROIIC %
For the Aerospace & Defense subindustry, Rheinmetall AG'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.
Rheinmetall AG's 3-Year ROIIC % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rheinmetall AG's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Rheinmetall AG's 3-Year ROIIC % falls into.
Rheinmetall AG 3-Year ROIIC % Calculation
Rheinmetall AG'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**
=
( 657.823 (Dec. 2023) - 337.3768 (Dec. 2020) )
/
( 9350 (Dec. 2023) - 5372 (Dec. 2020) )
=
320.4462
/
3978
=
8.06%***
* 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.
Rheinmetall AG (XTER:RHM) 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.
Rheinmetall AG 3-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Rheinmetall AG's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Rheinmetall is an international group active in various markets with leading technological products and services. The sales focus is on the security technology and mobility segments. Since February 2021, the group structure has been made up of five divisions—vehicle systems, weapon and ammunition, electronic solutions, sensors and actuators, and materials and trade. The vehicle systems, weapon and ammunition, and electronic solutions divisions are among the defense and security industry's leading suppliers of innovative products to German and international defense forces. The sensors and actuators and materials and trade divisions' core area of expertise is the reduction of emissions, pollutants, and fuel consumption.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
XTER:RHM has been successfully added to your 