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.
SMART Global Holdings's 1-Year ROIIC % for the quarter that ended in Feb. 2024 was 123.92%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for SMART Global Holdings's 1-Year ROIIC % or its related term are showing as below:
SGH's 1-Year ROIIC % is ranked better than 86.19% of 970
companies
in the Semiconductors industry
Industry Median: -2.23
vs SGH: 123.92
SMART Global Holdings 1-Year ROIIC % Historical Data
The historical data trend for SMART Global Holdings's 1-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 SMART Global Holdings's 1-Year ROIIC %
For the Semiconductors subindustry, SMART Global Holdings'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.
SMART Global Holdings's 1-Year ROIIC % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, SMART Global Holdings's 1-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where SMART Global Holdings's 1-Year ROIIC % falls into.
SMART Global Holdings 1-Year ROIIC % Calculation
SMART Global Holdings's 1-Year ROIIC % for the quarter that ended in Feb. 2024 is calculated as:
1-Year ROIIC %
=
1-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
1-Year Incremental Invested Capital
=
( -176.7699 (Feb. 2024) - 31.764 (Feb. 2023) )
/
( 869.665 (Feb. 2024) - 1037.94 (Feb. 2023) )
=
-208.5339
/
-168.275
=
123.92%***
* 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.
SMART Global Holdings (NAS:SGH) 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.
SMART Global Holdings 1-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of SMART Global Holdings's 1-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
SMART Global Holdings (SMART Global Holdings) Business Description
SMART Global Holdings Inc is a designer and manufacturer of electronic products focused on memory and computing technology areas. It specializes in application-specific product development and support for customers in the enterprise, government and original equipment manufacturer (OEM) markets. It operates in three segments such as Memory Solutions in which Memory Solutions group, under our SMART Modular brand, provides high performance and reliable memory solutions through the design, development and advanced packaging of leading-edge to extended lifecycle products. Intelligent Platform Solutions in their IPS group, under our Penguin Solutions and newly acquired Stratus Technologies brands, offers specialized platform solutions and services for high-performance computing.
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