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Ribbon Communications (STU:NU42) 5-Year ROIIC % : 12.66% (As of Dec. 2024)


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What is Ribbon Communications 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. Ribbon Communications's 5-Year ROIIC % for the quarter that ended in Dec. 2024 was 12.66%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

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

STU:NU42's 5-Year ROIIC % is ranked better than
62.39% of 2369 companies
in the Software industry
Industry Median: 5.26 vs STU:NU42: 12.66

Ribbon Communications 5-Year ROIIC % Historical Data

The historical data trend for Ribbon Communications'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.

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Ribbon Communications 5-Year ROIIC % Chart

Ribbon Communications Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
5-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.80 3.01 -2.77 36.74 12.66

Ribbon Communications Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 36.74 - - - 12.66

Competitive Comparison of Ribbon Communications's 5-Year ROIIC %

For the Software - Application subindustry, Ribbon Communications'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.


Ribbon Communications's 5-Year ROIIC % Distribution in the Software Industry

For the Software industry and Technology sector, Ribbon Communications's 5-Year ROIIC % distribution charts can be found below:

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



Ribbon Communications 5-Year ROIIC % Calculation

Ribbon Communications's 5-Year ROIIC % for the quarter that ended in Dec. 2024 is calculated as:

5-Year ROIIC %=5-Year Incremental Net Operating Profit After Taxes (NOPAT)**/5-Year Incremental Invested Capital**
=( 30.3931768 (Dec. 2024) - 3.9933432 (Dec. 2019) )/( 884.065 (Dec. 2024) - 638.387 (Dec. 2019) )
=26.3998336/245.678
=10.75%***

* 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.


Ribbon Communications  (STU:NU42) 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.


Ribbon Communications 5-Year ROIIC % Related Terms

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Ribbon Communications Business Description

Traded in Other Exchanges
Address
6500 Chase Oaks Boulevard, Suite 100, Plano, TX, USA, 75023
Ribbon Communications Inc provides network solutions to service providers and enterprises. The company enables service providers and enterprises to modernize their communications networks and provide secure real-time communications solutions to their customers and employees. The company has two separate lines of business; the Cloud and Edge segment, and the IP Optical Networks segment. The majority of the revenue for the company is generated from its Cloud and Edge segment that provides secure and reliable software and hardware products, solutions, and services for VoIP communications, Voice Over LTE among others to service providers and enterprise customers. The company generates majority of its revenue from United States.

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