Thomson Reuters (TSX:TRI.PR.B.PFD) 5-Year ROIIC % : 23.63% (As of Dec. 2023)

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What is Thomson Reuters 5-Year ROIIC %?

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. Thomson Reuters's 5-Year ROIIC % for the quarter that ended in Dec. 2023 was 23.63%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Thomson Reuters's 5-Year ROIIC % or its related term are showing as below:

TSX:TRI.PR.B.PFD's 5-Year ROIIC % is ranked better than
78.13% of 974 companies
in the Business Services industry
Industry Median: 3.875 vs TSX:TRI.PR.B.PFD: 23.63

Thomson Reuters 5-Year ROIIC % Historical Data

The historical data trend for Thomson Reuters'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.

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Thomson Reuters 5-Year ROIIC % Chart

Thomson Reuters Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

5-Year ROIIC %

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-6.18

-1.65

34.97

-14.27

23.63

Thomson Reuters Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
5-Year ROIIC %	Get a 7-Day Free Trial															-14.27	-	-	-	23.63

Competitive Comparison of Thomson Reuters's 5-Year ROIIC %

For the Specialty Business Services subindustry, Thomson Reuters'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.

Thomson Reuters's 5-Year ROIIC % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Thomson Reuters's 5-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Thomson Reuters's 5-Year ROIIC % falls into.

Thomson Reuters 5-Year ROIIC % Calculation

Thomson Reuters'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^**
	=	( 2067.258024 (Dec. 2023) - 775.552792 (Dec. 2018) )	/	( 23838.89 (Dec. 2023) - 18372.387 (Dec. 2018) )
	=	1291.705232	/	5466.503
	=	23.63%^***

** 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.

Thomson Reuters (TSX:TRI.PR.B.PFD) 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.

Thomson Reuters 5-Year ROIIC % Related Terms

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Thomson Reuters (TSX:TRI.PR.B.PFD) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Thomson Reuters Corp (TSX:TRI.PR.B.PFD) » Definitions » 5-Year ROIIC %

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333 Bay Street, Suite 300, Toronto, ON, CAN, M5H 2R2

Website

https://www.thomsonreuters.com

Thomson Reuters is the result of the $17.6 billion megamerger of Canada's Thomson and the United Kingdom's Reuters Group in 2008. In 2021, Thomson Reuters completed the sale of Refinitiv to LSE Group. Thomson Reuters' three largest segments are its legal professionals, Tax and accounting, and corporates segments. Legal professionals is about 42% of the firm's revenue and 47% of the firm's adjusted EBITDA. Tax and accounting makes up about 20%-25% of the firm's revenue and EBITDA. Corporates, which consists of legal professionals and tax and accounting products sold to corporations, also makes up about 20%-25% of the firm's revenue and EBITDA. Thomson Reuters' smaller segments include its Reuters news business and global print business.

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