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.
United States Cellular's 5-Year ROIIC % for the quarter that ended in Dec. 2023 was -0.85%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for United States Cellular's 5-Year ROIIC % or its related term are showing as below:
USM's 5-Year ROIIC % is ranked worse than 61.6% of 375
companies
in the Telecommunication Services industry
Industry Median: 2.89
vs USM: -0.85
United States Cellular 5-Year ROIIC % Historical Data
The historical data trend for United States Cellular'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 United States Cellular's 5-Year ROIIC %
For the Telecom Services subindustry, United States Cellular'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.
United States Cellular's 5-Year ROIIC % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, United States Cellular's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where United States Cellular's 5-Year ROIIC % falls into.
United States Cellular 5-Year ROIIC % Calculation
United States Cellular'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**
=
( 80.465 (Dec. 2023) - 114.42 (Dec. 2018) )
/
( 10320 (Dec. 2023) - 6334 (Dec. 2018) )
=
-33.955
/
3986
=
-0.85%***
* 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.
United States Cellular (NYSE:USM) 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.
United States Cellular 5-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of United States Cellular's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
United States Cellular (United States Cellular) Business Description
U.S. Cellular is a regional wireless carrier that serves about 5 million customers spread across four major geographic clusters: the Midwest, mid-Atlantic, New England, and the Pacific Northwest. These service territories encompass a total population of about 32 million people. The vast majority of the markets the firm serves are rural or second/third-tier cities, with only the greater Milwaukee and Oklahoma City regions boasting populations greater than 1 million. U.S. Cellular also owns a 5.5% stake in Verizon Wireless' Los Angeles operations and, unlike its wireless carrier peers, owns most of its own towers.
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