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.
Japan Tobacco's 5-Year ROIIC % for the quarter that ended in Dec. 2023 was 12.58%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Japan Tobacco's 5-Year ROIIC % or its related term are showing as below:
TSE:2914's 5-Year ROIIC % is ranked better than 63.64% of 44
companies
in the Tobacco Products industry
Industry Median: 3.34
vs TSE:2914: 12.58
Japan Tobacco 5-Year ROIIC % Historical Data
The historical data trend for Japan Tobacco'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 Japan Tobacco's 5-Year ROIIC %
For the Tobacco subindustry, Japan Tobacco'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.
Japan Tobacco's 5-Year ROIIC % Distribution in the Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Japan Tobacco's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Japan Tobacco's 5-Year ROIIC % falls into.
Japan Tobacco 5-Year ROIIC % Calculation
Japan Tobacco'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)**
* 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.
Japan Tobacco (TSE:2914) 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.
Japan Tobacco 5-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Japan Tobacco's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Japan Tobacco is the third-largest tobacco company globally. It owns a rich brand portfolio including Winston (non-U.S.), Camel (non-U.S.), and Mevius, and holds leading shares in many core markets including Japan, Russia, and the U.K. It has added Logic as a vaping brand and Ploom heated tobacco lines into its reduced-risk-product portfolio. The tobacco business contributes 90% of group sales and nearly all profits, with more than half generated by the overseas tobacco operations. JTI was created through the acquisition of R.J. Reynolds' non-U.S. operations in 1999 and further expanded through multiple acquisitions, of which the purchase of Gallaher in 2007 was the most notable, doubling JTI's sales. Pharmaceutical and processed food operations are the other businesses.
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