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.
Lumen Technologies's 1-Year ROIIC % for the quarter that ended in Dec. 2023 was 34.10%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Lumen Technologies's 1-Year ROIIC % or its related term are showing as below:
LUMN's 1-Year ROIIC % is ranked better than 76.37% of 364
companies
in the Telecommunication Services industry
Industry Median: 0.465
vs LUMN: 34.10
Lumen Technologies 1-Year ROIIC % Historical Data
The historical data trend for Lumen Technologies'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 Lumen Technologies's 1-Year ROIIC %
For the Telecom Services subindustry, Lumen Technologies'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.
Lumen Technologies's 1-Year ROIIC % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Lumen Technologies's 1-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Lumen Technologies's 1-Year ROIIC % falls into.
Lumen Technologies 1-Year ROIIC % Calculation
Lumen Technologies's 1-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:
1-Year ROIIC %
=
1-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
1-Year Incremental Invested Capital
=
( 1237.38 (Dec. 2023) - 5143.9953 (Dec. 2022) )
/
( 30528 (Dec. 2023) - 41983 (Dec. 2022) )
=
-3906.6153
/
-11455
=
34.10%***
* 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.
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.
Lumen Technologies 1-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Lumen Technologies's 1-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lumen Technologies (Lumen Technologies) Business Description
With 450,000 route miles of fiber, including over 35,000 route miles of subsea fiber connecting Europe, Asia, and Latin America, Lumen Technologies is one of the United States' largest telecommunications carriers serving global enterprises. Its merger with Level 3 in 2017 and divestiture of much of its incumbent local exchange carrier, or ILEC, business in 2022 has shifted the company's operations away from its legacy consumer business and toward enterprises (now nearly 80% of revenue). Lumen offers businesses a full menu of communications services, providing colocation and data center services, data transportation, and end-user phone and internet service. On the consumer side, Lumen provides broadband and phone service across 37 states, where it has 4.5 million broadband customers.
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