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Rolls-Royce Holdings (LSE:RR.) 3-Year ROIIC % : -451.03% (As of Dec. 2023)


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What is Rolls-Royce Holdings 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. Rolls-Royce Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was -451.03%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

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

LSE:RR.'s 3-Year ROIIC % is ranked worse than
96.61% of 295 companies
in the Aerospace & Defense industry
Industry Median: 2.41 vs LSE:RR.: -451.03

Rolls-Royce Holdings 3-Year ROIIC % Historical Data

The historical data trend for Rolls-Royce Holdings'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.

Rolls-Royce Holdings 3-Year ROIIC % Chart

Rolls-Royce Holdings 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 -17.78 -160.83 -35.41 -81.22 -451.03

Rolls-Royce Holdings 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 -35.41 - -81.22 - -451.03

Competitive Comparison of Rolls-Royce Holdings's 3-Year ROIIC %

For the Aerospace & Defense subindustry, Rolls-Royce Holdings'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.


Rolls-Royce Holdings's 3-Year ROIIC % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Rolls-Royce Holdings's 3-Year ROIIC % falls into.



Rolls-Royce Holdings 3-Year ROIIC % Calculation

Rolls-Royce Holdings'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**
=( 1754.1755 (Dec. 2023) - -2395.2798 (Dec. 2020) )/( 22454 (Dec. 2023) - 23374 (Dec. 2020) )
=4149.4553/-920
=-451.03%***

* 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.


Rolls-Royce Holdings  (LSE:RR.) 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.


Rolls-Royce Holdings 3-Year ROIIC % Related Terms

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Rolls-Royce Holdings (LSE:RR.) Business Description

Traded in Other Exchanges
Address
90 York Way, Kings Place, London, GBR, N1 9FX
Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.

Rolls-Royce Holdings (LSE:RR.) Headlines

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