5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Astec Industries's 5-Year ROIIC % for the quarter that ended in Dec. 2023 was 74.20%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Astec Industries's 5-Year ROIIC % or its related term are showing as below:
ASTE's 5-Year ROIIC % is ranked better than 94.09% of 203
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 7.13
vs ASTE: 74.20
Astec Industries 5-Year ROIIC % Historical Data
The historical data trend for Astec Industries's 5-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 Astec Industries's 5-Year ROIIC %
For the Farm & Heavy Construction Machinery subindustry, Astec Industries's 5-Year ROIIC %, along with its competitors' market caps and 5-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.
Astec Industries's 5-Year ROIIC % Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Astec Industries's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Astec Industries's 5-Year ROIIC % falls into.
Astec Industries 5-Year ROIIC % Calculation
Astec Industries's 5-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 42.83456 (Dec. 2023) - -51.79378 (Dec. 2018) )
/
( 816.3 (Dec. 2023) - 688.773 (Dec. 2018) )
=
94.62834
/
127.527
=
74.20%***
* 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 5-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.
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.
Astec Industries 5-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Astec Industries's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Astec Industries Inc designs and manufactures equipment and components used in road construction and other development activities. Its products are used through the entire process of building roads, from mining and crushing materials to creating the road surface. The company manufactures a line of plants, pavers, vehicles, and machines to mix and transform materials into construction components. It has two operating segments: infrastructure solutions generating maximum revenue and materials solutions. The majority of sales are derived from the United States. Its customers are asphalt producers, highway and heavy equipment contractors, ready mix concrete producers, demolition recycling markets, sand and gravel producers, open mine operators, quarry operators, and others.
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