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.
Toromont Industries's 5-Year ROIIC % for the quarter that ended in Dec. 2023 was 26.05%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Toromont Industries's 5-Year ROIIC % or its related term are showing as below:
TSX:TIH's 5-Year ROIIC % is ranked better than 80% of 145
companies
in the Industrial Distribution industry
Industry Median: 5.5
vs TSX:TIH: 26.05
Toromont Industries 5-Year ROIIC % Historical Data
The historical data trend for Toromont 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 Toromont Industries's 5-Year ROIIC %
For the Industrial Distribution subindustry, Toromont 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.
Toromont Industries's 5-Year ROIIC % Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Toromont Industries's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Toromont Industries's 5-Year ROIIC % falls into.
Toromont Industries 5-Year ROIIC % Calculation
Toromont 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)**
* 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.
Toromont Industries 5-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Toromont Industries's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Toromont Industries Ltd is a Canadian industrial company. The company operates two business segments: Equipment Group and CIMCO. The larger segment by revenue, Equipment Group supplies and rents mobile and stationary machines used in road building, mining, aggregates, public infrastructure, residential construction, power generation, agriculture, forestry, truck engines, industrial, demolition and waste management. CIMCO offers solutions for the design, engineering, fabrication, and installation of industrial and recreational refrigeration systems. The company operates majorly in Canada and derives a smaller portion of sales from the United States of America and other regions.
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