3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
The a2 Milk Co's 3-Year ROIIC % for the quarter that ended in Jun. 2023 was -135.92%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for The a2 Milk Co's 3-Year ROIIC % or its related term are showing as below:
ASX:A2M's 3-Year ROIIC % is ranked worse than 92.78% of 1814
companies
in the Consumer Packaged Goods industry
Industry Median: 1.775
vs ASX:A2M: -135.92
The a2 Milk Co 3-Year ROIIC % Historical Data
The historical data trend for The a2 Milk Co's 3-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 The a2 Milk Co's 3-Year ROIIC %
For the Packaged Foods subindustry, The a2 Milk Co's 3-Year ROIIC %, along with its competitors' market caps and 3-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.
The a2 Milk Co's 3-Year ROIIC % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's 3-Year ROIIC % falls into.
The a2 Milk Co 3-Year ROIIC % Calculation
The a2 Milk Co's 3-Year ROIIC % for the quarter that ended in Jun. 2023 is calculated as:
3-Year ROIIC %
=
3-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 3-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.
The a2 Milk Co (ASX:A2M) 3-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.
The a2 Milk Co 3-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of The a2 Milk Co's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
A2 Milk is a New Zealand licensor and marketer of fresh milk, infant formula, and other dairy products that lack the A1 beta-casein protein. The firm was founded in 2000 by Corran McLachlan, who developed a genetic test to determine which proteins a cow produces in its milk, and business partner Howard Paterson. The company has been through a tumultuous history of receivership, legal battles, and strategic shifts, but emerged in its current structure in 2006 and listed publicly in March 2013.
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