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Visa (V) 3-Year ROIIC % : 105.58% (As of Sep. 2023)


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What is Visa 3-Year ROIIC %?

3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year. Visa's 3-Year ROIIC % for the quarter that ended in Sep. 2023 was 105.58%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Visa's 3-Year ROIIC % or its related term are showing as below:

V's 3-Year ROIIC % is ranked better than
94.1% of 373 companies
in the Credit Services industry
Industry Median: 2.27 vs V: 105.58

Visa 3-Year ROIIC % Historical Data

The historical data trend for Visa's 3-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.

Visa 3-Year ROIIC % Chart

Visa Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 124.09 48.86 15.80 40.12 105.58

Visa Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
3-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 - - 105.58 - -

Competitive Comparison of Visa's 3-Year ROIIC %

For the Credit Services subindustry, Visa's 3-Year ROIIC %, along with its competitors' market caps and 3-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.


Visa's 3-Year ROIIC % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Visa's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Visa's 3-Year ROIIC % falls into.



Visa 3-Year ROIIC % Calculation

Visa's 3-Year ROIIC % for the quarter that ended in Sep. 2023 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 18004.2597 (Sep. 2023) - 11104.496 (Sep. 2020) )/( 69655 (Sep. 2023) - 63120 (Sep. 2020) )
=6899.7637/6535
=105.58%***

* 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 3-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.


Visa  (NYSE:V) 3-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.


Visa 3-Year ROIIC % Related Terms

Thank you for viewing the detailed overview of Visa's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Visa (V) Business Description

Address
P.O. Box 8999, San Francisco, CA, USA, 94128-8999
Visa is the largest payment processor in the world. In fiscal 2022, it processed over $14 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.
Executives
Rajat Taneja officer: PRESIDENT, TECHNOLOGY C/O ELECTRONIC ARTS INC., 209 REDWOOD SHORES PARKWAY, LEGAL DEPT., REDWOOD CITY CA 94065
Ryan Mcinerney officer: PRESIDENT C/O VISA INC., PO BOX 8999, SAN FRANCISCO CA 94128
Kelly Alfred F Jr director, officer: CHAIRMAN & CEO AMERICAN EXPRESS COMPANY, 200 VESEY STREET, NEW YORK NY 10285
Chris Suh officer: CHIEF FINANCIAL OFFICER C/O CARDLYTICS, INC., 675 PONCE DE LEON AVE. NE, STE 6000, ATLANTA GA 30308
Vasant M Prabhu officer: VICE CHAIR, CFO C/O SAFEWAY INC, 5918 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Tullier Kelly Mahon officer: V.CHAIR, CHF PPL & ADM OFF C/O VISA INC., PO BOX 8999, SAN FRANCISCO CA 94128
Lloyd Carney director C/O MICROMUSE INC, 139 TOWNSEND ST, SAN FRANCISCO CA 94107
Pam Murphy director 1201 S. 2ND STREET, MILWAUKEE WI 53204
Julie B Rottenberg officer: GENERAL COUNSEL C/O VISA INC, POB 8999, SAN FRANCISCO CA 94128
Kermit R Crawford director 200 WILMOT ROAD, DEERFIELD IL 60015
Peter M Andreski officer: GBL CORP CONTROLLER, CAO C/O VISA INC., POB 8999, SAN FRANCISCO CA 94128
Teri List director 2200 PENNSYLVANIA AVENUE, SUITE 800W, WASHINGTON DC 20037
Robert W Matschullat director C/O THE CLOROX COMPANY, 1221 BROADWAY, OAKLAND CA 94612
James H Hoffmeister officer: GBL CORP CONTROLLER, CAO C/O VISA INC., PO BOX 8999, SAN FRANCISCO CA 94128
Paul D Fabara officer: CHIEF RISK OFFICER 200 VESEY STREET, NEW YORK NY 10285