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Solution Dynamics (NZSE:SDL) 5-Year ROIIC % : 165.11% (As of Jun. 2023)


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What is Solution Dynamics 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. Solution Dynamics's 5-Year ROIIC % for the quarter that ended in Jun. 2023 was 165.11%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

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

NZSE:SDL's 5-Year ROIIC % is ranked better than
95.01% of 2465 companies
in the Software industry
Industry Median: 3.4 vs NZSE:SDL: 165.11

Solution Dynamics 5-Year ROIIC % Historical Data

The historical data trend for Solution Dynamics'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.

* Premium members only.

Solution Dynamics 5-Year ROIIC % Chart

Solution Dynamics Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
5-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.17 0.29 6.73 37.17 165.11

Solution Dynamics Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
5-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 - 37.17 - 165.11 -

Competitive Comparison of Solution Dynamics's 5-Year ROIIC %

For the Software - Application subindustry, Solution Dynamics'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.


Solution Dynamics's 5-Year ROIIC % Distribution in the Software Industry

For the Software industry and Technology sector, Solution Dynamics's 5-Year ROIIC % distribution charts can be found below:

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



Solution Dynamics 5-Year ROIIC % Calculation

Solution Dynamics's 5-Year ROIIC % for the quarter that ended in Jun. 2023 is calculated as:

5-Year ROIIC %=5-Year Incremental Net Operating Profit After Taxes (NOPAT)**/5-Year Incremental Invested Capital**
=( 3.503125 (Jun. 2023) - 1.1602751 (Jun. 2018) )/( 6.451 (Jun. 2023) - 5.032 (Jun. 2018) )
=2.3428499/1.419
=165.11%***

* 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.


Solution Dynamics  (NZSE:SDL) 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.


Solution Dynamics 5-Year ROIIC % Related Terms

Thank you for viewing the detailed overview of Solution Dynamics's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Solution Dynamics (NZSE:SDL) Business Description

Traded in Other Exchanges
N/A
Address
18 Canaveral Drive, PO Box 301248, Albany, Auckland, NZL, 0752
Solution Dynamics Ltd is a company engaged in providing customer communications solutions. Its products and services are represented by revenue streams: Digital Printing & Document Handling Services; and Software and Technology, Outsourced services. Services include digital print and mail house processing for mail items like invoices, statements, and promotional material. Software and Technology develop and markets its software products related to multi-channel marketing communications including digital asset management, communication templates, campaign management, document archiving, document composition, and desktop mail solutions among others. Its outsourced services elements are the post, freight, paper, and envelopes.

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