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.
Mead Johnson Nutrition Co's 3-Year ROIIC % for the quarter that ended in Dec. 2016 was 0.00%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Mead Johnson Nutrition Co's 3-Year ROIIC % or its related term are showing as below:
MJN's 3-Year ROIIC % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 1.725 * Ranked among companies with meaningful 3-Year ROIIC % only.
Mead Johnson Nutrition Co 3-Year ROIIC % Historical Data
* 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 Mead Johnson Nutrition Co's 3-Year ROIIC %
For the Packaged Foods subindustry, Mead Johnson Nutrition Co'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.
Mead Johnson Nutrition Co's 3-Year ROIIC % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Mead Johnson Nutrition Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Mead Johnson Nutrition Co's 3-Year ROIIC % falls into.
Mead Johnson Nutrition Co 3-Year ROIIC % Calculation
Mead Johnson Nutrition Co's 3-Year ROIIC % for the quarter that ended in Dec. 2016 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 630.48087 (Dec. 2016) - 726.88544 (Dec. 2013) )
/
( 1397.4 (Dec. 2016) - 1910.2 (Dec. 2013) )
=
-96.40457
/
-512.8
=
18.80%***
* 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.
Mead Johnson Nutrition Co (NYSE:MJN) 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.
Mead Johnson Nutrition Co 3-Year ROIIC % Related Terms
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Mead Johnson Nutrition Co (Mead Johnson Nutrition Co) Business Description
Mead Johnson Nutrition makes, distributes, and markets pediatric nutrition products worldwide under a variety of brands, including Enfamil, its largest label, along with Sustagen, Enfagrow, and Nutramigen. Infant formula represented 59% of 2015 sales and children's nutrition 39%, with expectant and nursing mother nutrition and pediatric vitamins comprising the remainder. The company sells its products globally; 73% of sales were generated outside the United States in 2015. At about 30% of revenue, China is the company's largest market.
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