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CME Group (FRA:MX4A) 3-Year ROIIC % : 13.53% (As of Dec. 2023)


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What is CME Group 3-Year ROIIC %?

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. CME Group's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was 13.53%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for CME Group's 3-Year ROIIC % or its related term are showing as below:

FRA:MX4A's 3-Year ROIIC % is ranked better than
71.52% of 646 companies
in the Capital Markets industry
Industry Median: 1.7 vs FRA:MX4A: 13.53

CME Group 3-Year ROIIC % Historical Data

The historical data trend for CME Group'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.

* Premium members only.

CME Group 3-Year ROIIC % Chart

CME Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.57 -3.42 0.19 0.29 13.53

CME Group Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
3-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 - - - 13.53 -

Competitive Comparison of CME Group's 3-Year ROIIC %

For the Financial Data & Stock Exchanges subindustry, CME Group'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.


CME Group's 3-Year ROIIC % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, CME Group's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where CME Group's 3-Year ROIIC % falls into.



CME Group 3-Year ROIIC % Calculation

CME Group's 3-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 2447.0220879 (Dec. 2023) - 1677.5542934 (Dec. 2020) )/( 117506.398 (Dec. 2023) - 101520.534 (Dec. 2020) )
=769.4677945/15985.864
=4.81%***

* 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.


CME Group  (FRA:MX4A) 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.


CME Group 3-Year ROIIC % Related Terms

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CME Group (FRA:MX4A) Business Description

Traded in Other Exchanges
Address
20 South Wacker Drive, Chicago, IL, USA, 60606
Based in Chicago, CME Group operates exchanges giving investors, suppliers, and businesses the ability to trade futures and derivatives based on interest rates, equity indexes, foreign currencies, energy, metals, and commodities. The CME was founded in 1898 and in 2002 completed its initial public offering. Since then, CME Group has consolidated parts of the industry by merging with crosstown rival, CBOT Holdings in 2007 before acquiring Nymex Holdings in 2008 and NEX in 2018. In addition, the company has a 27% stake in S&P Dow Jones Indices, making the Chicago Mercantile Exchange the exclusive venue to trade and clear S&P futures contracts. Through CME's acquisition of NEX in 2018 it has also expanded into cash foreign exchange, fixed income trading, and collateral optimization.

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