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.
Recordati SpA's 5-Year ROIIC % for the quarter that ended in Dec. 2023 was 6.43%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Recordati SpA's 5-Year ROIIC % or its related term are showing as below:
RCDTF's 5-Year ROIIC % is ranked better than 56.14% of 994
companies
in the Drug Manufacturers industry
Industry Median: 3.445
vs RCDTF: 6.43
Recordati SpA 5-Year ROIIC % Historical Data
The historical data trend for Recordati SpA'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 Recordati SpA's 5-Year ROIIC %
For the Drug Manufacturers - General subindustry, Recordati SpA'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.
Recordati SpA's 5-Year ROIIC % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Recordati SpA's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Recordati SpA's 5-Year ROIIC % falls into.
Recordati SpA 5-Year ROIIC % Calculation
Recordati SpA'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)**
* 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.
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.
Recordati SpA 5-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Recordati SpA's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Recordati SpA (Recordati SpA) Business Description
Recordati SpA is a drug manufacturing company that focuses on specialty pharmaceuticals. The company produces and promotes medicines globally that focus on primary-care therapies and rare diseases. Recordati uses strategic partnerships as part of its long-term growth. The vast majority of the company's revenue is generated in Italy, followed by the United States, France, and Germany. Recordati reports two operating segments: Specialty and Primary care and Rare diseases. The bulk of the company's profit is derived from its specialty and primary care segment, which includes the production of active ingredients.
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