Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Twenty-First Century Fox Inc., ROIC calculation, comparison to benchmarks
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 4,669) | 4,273) | 4,025) | 9,417) | 4,517) | 7,896) | |
| Invested capital2 | 47,272) | 45,055) | 42,462) | 44,315) | 48,265) | 44,434) | |
| Performance Ratio | |||||||
| ROIC3 | 9.88% | 9.48% | 9.48% | 21.25% | 9.36% | 17.77% | |
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Alphabet Inc. | — | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | — | |
| Walt Disney Co. | 15.32% | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 NOPAT. See details »
2 Invested capital. See details »
3 2018 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 4,669 ÷ 47,272 = 9.88%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Twenty-First Century Fox Inc. ROIC improved from 2016 to 2017 and from 2017 to 2018. |
Decomposition of ROIC
Twenty-First Century Fox Inc., decomposition of ROIC
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the increase in return on invested capital (ROIC) over 2018 year is the decrease in effective cash tax rate (CTR).
Operating Profit Margin (OPM)
Twenty-First Century Fox Inc., OPM calculation, comparison to benchmarks
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 4,669) | 4,273) | 4,025) | 9,417) | 4,517) | 7,896) | |
| Add: Cash operating taxes2 | 904) | 1,781) | 1,095) | 1,504) | 1,707) | 1,612) | |
| Net operating profit before taxes (NOPBT) | 5,572) | 6,053) | 5,120) | 10,921) | 6,224) | 9,509) | |
| Revenues | 30,400) | 28,500) | 27,326) | 28,987) | 31,867) | 27,675) | |
| Add: Increase (decrease) in deferred revenue | 98) | 75) | 57) | (242) | 13) | (203) | |
| Adjusted revenues | 30,498) | 28,575) | 27,383) | 28,745) | 31,880) | 27,472) | |
| Profitability Ratio | |||||||
| OPM3 | 18.27% | 21.18% | 18.70% | 37.99% | 19.52% | 34.61% | |
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Alphabet Inc. | — | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | — | |
| Walt Disney Co. | 26.38% | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2018 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenues
= 100 × 5,572 ÷ 30,498 = 18.27%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Twenty-First Century Fox Inc. OPM improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
Turnover of Capital (TO)
Twenty-First Century Fox Inc., TO calculation, comparison to benchmarks
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenues | 30,400) | 28,500) | 27,326) | 28,987) | 31,867) | 27,675) | |
| Add: Increase (decrease) in deferred revenue | 98) | 75) | 57) | (242) | 13) | (203) | |
| Adjusted revenues | 30,498) | 28,575) | 27,383) | 28,745) | 31,880) | 27,472) | |
| Invested capital1 | 47,272) | 45,055) | 42,462) | 44,315) | 48,265) | 44,434) | |
| Efficiency Ratio | |||||||
| TO2 | 0.65 | 0.63 | 0.64 | 0.65 | 0.66 | 0.62 | |
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Alphabet Inc. | — | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | — | |
| Walt Disney Co. | 0.75 | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 Invested capital. See details »
2 2018 Calculation
TO = Adjusted revenues ÷ Invested capital
= 30,498 ÷ 47,272 = 0.65
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Twenty-First Century Fox Inc. TO deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level. |
Effective Cash Tax Rate (CTR)
Twenty-First Century Fox Inc., CTR calculation, comparison to benchmarks
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 4,669) | 4,273) | 4,025) | 9,417) | 4,517) | 7,896) | |
| Add: Cash operating taxes2 | 904) | 1,781) | 1,095) | 1,504) | 1,707) | 1,612) | |
| Net operating profit before taxes (NOPBT) | 5,572) | 6,053) | 5,120) | 10,921) | 6,224) | 9,509) | |
| Tax Rate | |||||||
| CTR3 | 16.22% | 29.41% | 21.39% | 13.77% | 27.42% | 16.96% | |
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Alphabet Inc. | — | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | — | |
| Walt Disney Co. | 22.17% | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2018 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 904 ÷ 5,572 = 16.22%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Twenty-First Century Fox Inc. CTR increased from 2016 to 2017 but then decreased significantly from 2017 to 2018. |