1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year.
Zoom Video Communications's 1-Year ROIIC % for the quarter that ended in Jul. 2024 was 238.85%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Zoom Video Communications's 1-Year ROIIC % or its related term are showing as below:
ZM's 1-Year ROIIC % is ranked better than 91.52% of 2546
companies
in the Software industry
Industry Median: 3.98
vs ZM: 238.85
Zoom Video Communications 1-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 Zoom Video Communications's 1-Year ROIIC %
For the Software - Application subindustry, Zoom Video Communications's 1-Year ROIIC %, along with its competitors' market caps and 1-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.
Zoom Video Communications's 1-Year ROIIC % Distribution in the Software Industry
For the Software industry and Technology sector, Zoom Video Communications's 1-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Zoom Video Communications's 1-Year ROIIC % falls into.
Zoom Video Communications 1-Year ROIIC % Calculation
Zoom Video Communications's 1-Year ROIIC % for the quarter that ended in Jul. 2024 is calculated as:
1-Year ROIIC %
=
1-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
1-Year Incremental Invested Capital
=
( 573.1812 (Jul. 2024) - -150.4452 (Jul. 2023) )
/
( 3718.622 (Jul. 2024) - 3415.662 (Jul. 2023) )
=
723.6264
/
302.96
=
238.85%***
* 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.
** TTM data of NOPAT and Invested Capital was used to calculate 1-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.
Zoom Video Communications (NAS:ZM) 1-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.
Zoom Video Communications 1-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Zoom Video Communications's 1-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
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