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.
American Homes 4 Rent's 5-Year ROIIC % for the quarter that ended in Dec. 2023 was 4.03%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for American Homes 4 Rent's 5-Year ROIIC % or its related term are showing as below:
AMH's 5-Year ROIIC % is ranked better than 54.76% of 599
companies
in the REITs industry
Industry Median: 3.62
vs AMH: 4.03
American Homes 4 Rent 5-Year ROIIC % Historical Data
The historical data trend for American Homes 4 Rent'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 American Homes 4 Rent's 5-Year ROIIC %
For the REIT - Residential subindustry, American Homes 4 Rent'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.
American Homes 4 Rent's 5-Year ROIIC % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, American Homes 4 Rent's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where American Homes 4 Rent's 5-Year ROIIC % falls into.
American Homes 4 Rent 5-Year ROIIC % Calculation
American Homes 4 Rent'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)**
/
5-Year Incremental Invested Capital**
=
( 369.618 (Dec. 2023) - 230.117 (Dec. 2018) )
/
( 12512.453 (Dec. 2023) - 9047.24 (Dec. 2018) )
=
139.501
/
3465.213
=
4.03%***
* 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 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.
American Homes 4 Rent (NYSE:AMH) 5-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.
American Homes 4 Rent 5-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of American Homes 4 Rent's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
American Homes 4 Rent (American Homes 4 Rent) Business Description
American Homes 4 Rent is a real estate investment trust primarily focused on acquiring, operating, and leasing single-family homes as rental properties throughout the United States. The company's real estate portfolio is largely comprised of single-family properties in urban markets in the Southern and Midwestern regions of the U.S. American Homes 4 Rent's land holdings also represent a sizable percentage of its total assets in terms of value. The company derives the vast majority of its income in the form of rental revenue from single-family properties through short-term or annual leases. The firm's largest geographical markets include Dallas, Texas; Indianapolis, Indiana; Atlanta, Georgia; and Charlotte, North Carolina in terms of the number of properties in each.
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