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Zip Co (ASX:ZIP) 5-Year ROIIC % : 0.45% (As of Jun. 2023)


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What is Zip Co 5-Year ROIIC %?

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. Zip Co's 5-Year ROIIC % for the quarter that ended in Jun. 2023 was 0.45%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Zip Co's 5-Year ROIIC % or its related term are showing as below:

ASX:ZIP's 5-Year ROIIC % is ranked worse than
62.67% of 367 companies
in the Credit Services industry
Industry Median: 2.13 vs ASX:ZIP: 0.45

Zip Co 5-Year ROIIC % Historical Data

The historical data trend for Zip Co'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.

* Premium members only.

Zip Co 5-Year ROIIC % Chart

Zip Co Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
5-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.24 - -6.42 -9.42 0.45

Zip Co Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
5-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -9.42 - 0.45 -

Competitive Comparison of Zip Co's 5-Year ROIIC %

For the Credit Services subindustry, Zip Co'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.


Zip Co's 5-Year ROIIC % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Zip Co's 5-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Zip Co's 5-Year ROIIC % falls into.



Zip Co 5-Year ROIIC % Calculation

Zip Co's 5-Year ROIIC % for the quarter that ended in Jun. 2023 is calculated as:

5-Year ROIIC %=5-Year Incremental Net Operating Profit After Taxes (NOPAT)**/5-Year Incremental Invested Capital**
=( 3.2515288 (Jun. 2023) - -9.082 (Jun. 2018) )/( 3033.309 (Jun. 2023) - 311.174 (Jun. 2018) )
=12.3335288/2722.135
=0.45%***

* 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.


Zip Co  (ASX:ZIP) 5-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.


Zip Co 5-Year ROIIC % Related Terms

Thank you for viewing the detailed overview of Zip Co's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Zip Co (ASX:ZIP) Business Description

Traded in Other Exchanges
Address
126 Phillip Street, Level 5, Sydney, NSW, AUS, 2000
Zip is a diversified finance provider, offering consumer financing via a line of credit (via Zip Pay and Zip Money) and instalment-based finance (via QuadPay, Spotii, Twisto, and PayFlex); as well as lending to small to midsize enterprises (via Zip Business). Zip's fortunes are largely tied to the buy now, pay later, or BNPL, industry. Most of its products—Zip Pay, QuadPay (Zip U.S.), and PayFlex—do not charge interest based on outstanding balances. Around 60%-70% of Zip Pay's/Zip Money's revenue is derived from customers, mainly via account fees and interest. Meanwhile, its instalment businesses primarily generate revenue by receiving a margin from merchants, which compensates it for accepting all nonpayment risk and for encouraging consumers to transact more frequently.