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Hargreaves Lansdown (LSE:HL.) 3-Year ROIIC % : 27.90% (As of Jun. 2023)


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What is Hargreaves Lansdown 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. Hargreaves Lansdown's 3-Year ROIIC % for the quarter that ended in Jun. 2023 was 27.90%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

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

LSE:HL.'s 3-Year ROIIC % is ranked better than
78.62% of 608 companies
in the Asset Management industry
Industry Median: 2.26 vs LSE:HL.: 27.90

Hargreaves Lansdown 3-Year ROIIC % Historical Data

The historical data trend for Hargreaves Lansdown'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.

Hargreaves Lansdown 3-Year ROIIC % Chart

Hargreaves Lansdown Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 218.88 90.27 110.82 -81.24 27.90

Hargreaves Lansdown Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 - -81.24 - 27.90 -

Competitive Comparison of Hargreaves Lansdown's 3-Year ROIIC %

For the Asset Management subindustry, Hargreaves Lansdown'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.


Hargreaves Lansdown's 3-Year ROIIC % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Hargreaves Lansdown's 3-Year ROIIC % distribution charts can be found below:

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



Hargreaves Lansdown 3-Year ROIIC % Calculation

Hargreaves Lansdown'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)**/3-Year Incremental Invested Capital**
=( 308.98072 (Jun. 2023) - 278.1744 (Jun. 2020) )/( 253.2 (Jun. 2023) - 142.8 (Jun. 2020) )
=30.80632/110.4
=27.90%***

* 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.


Hargreaves Lansdown  (LSE:HL.) 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.


Hargreaves Lansdown 3-Year ROIIC % Related Terms

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Hargreaves Lansdown (LSE:HL.) Business Description

Traded in Other Exchanges
Address
Anchor Road, One College Square South, Bristol, GBR, BS1 5HL
Hargreaves Lansdown PLC operates a large direct-to-investor investment service in the United Kingdom built around offerings tailored to client needs. Clients can elect to hold all their funds, stocks, bonds, ETFs, and other financial instruments in a single service with various tax advantages. The company also offers portfolio rebalancing, discretionary services and managed funds, third-party services, savings management, online and apps offerings, and other retirement solutions. The company's clients mostly comprise individual investors and corporate clients. It primarily earns recurring revenue through the administration and management of assets held under its platform, and secondarily earns transactional revenue through stockbroking commissions and initial advisory fees.

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