Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Comcast Corp. (NASDAQ:CMCSA)

Return on Capital (ROC)

Advanced level

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company’s debt and equity structure. It measures business productivity performance.

Return on Invested Capital (ROIC)

Comcast Corp., ROIC calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 17,733  15,940  14,808  12,341  11,649 
Invested capital2 217,322  216,534  162,175  155,853  145,651 
Performance Ratio
ROIC3 8.16% 7.36% 9.13% 7.92% 8.00%
Benchmarks
ROIC, Competitors4
Charter Communications Inc. 3.84% 3.27% 2.19% 2.17% 1.49%
Netflix Inc. 10.33% 9.67% 6.45% 5.47% 5.06%
Walt Disney Co. 9.47% 15.25% 12.78% 15.18% 13.28%

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

1 NOPAT. See details »

2 Invested capital. See details »

3 2019 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 17,733 ÷ 217,322 = 8.16%

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. Comcast Corp.’s ROIC deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Decomposition of ROIC

Comcast Corp., decomposition of ROIC

Microsoft Excel LibreOffice Calc
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2019 8.16% = 19.82% × 0.50 × 81.72%
Dec 31, 2018 7.36% = 20.86% × 0.44 × 80.31%
Dec 31, 2017 9.13% = 22.39% × 0.52 × 77.86%
Dec 31, 2016 7.92% = 21.54% × 0.51 × 71.41%
Dec 31, 2015 8.00% = 22.24% × 0.51 × 69.93%

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

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 2019 year is the increase in efficiency measured by turnover of capital (TO) ratio.

Operating Profit Margin (OPM)

Comcast Corp., OPM calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 17,733  15,940  14,808  12,341  11,649 
Add: Cash operating taxes2 3,967  3,908  4,210  4,940  5,008 
Net operating profit before taxes (NOPBT) 21,700  19,848  19,018  17,280  16,657 
 
Revenue 108,942  94,507  84,526  80,403  74,510 
Add: Increase (decrease) in deferred revenue 554  648  420  (170) 387 
Adjusted revenue 109,496  95,155  84,946  80,233  74,897 
Profitability Ratio
OPM3 19.82% 20.86% 22.39% 21.54% 22.24%
Benchmarks
OPM, Competitors4
Charter Communications Inc. 13.58% 12.10% 9.95% 13.62% 10.51%
Netflix Inc. 14.43% 11.64% 7.81% 5.97% 5.38%
Walt Disney Co. 24.38% 26.20% 26.20% 27.51% 27.01%

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2019 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenue
= 100 × 21,700 ÷ 109,496 = 19.82%

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. Comcast Corp.’s OPM deteriorated from 2017 to 2018 and from 2018 to 2019.

Turnover of Capital (TO)

Comcast Corp., TO calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Revenue 108,942  94,507  84,526  80,403  74,510 
Add: Increase (decrease) in deferred revenue 554  648  420  (170) 387 
Adjusted revenue 109,496  95,155  84,946  80,233  74,897 
 
Invested capital1 217,322  216,534  162,175  155,853  145,651 
Efficiency Ratio
TO2 0.50 0.44 0.52 0.51 0.51
Benchmarks
TO, Competitors3
Charter Communications Inc. 0.33 0.32 0.30 0.21 0.26
Netflix Inc. 0.84 0.93 1.10 1.39 1.46
Walt Disney Co. 0.42 0.75 0.69 0.75 0.77

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

1 Invested capital. See details »

2 2019 Calculation
TO = Adjusted revenue ÷ Invested capital
= 109,496 ÷ 217,322 = 0.50

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. Comcast Corp.’s TO deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Effective Cash Tax Rate (CTR)

Comcast Corp., CTR calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 17,733  15,940  14,808  12,341  11,649 
Add: Cash operating taxes2 3,967  3,908  4,210  4,940  5,008 
Net operating profit before taxes (NOPBT) 21,700  19,848  19,018  17,280  16,657 
Tax Rate
CTR3 18.28% 19.69% 22.14% 28.59% 30.07%
Benchmarks
CTR, Competitors4
Charter Communications Inc. 14.93% 15.66% 27.40% 23.33% 45.30%
Netflix Inc. 14.95% 10.93% 24.64% 34.18% 35.81%
Walt Disney Co. 7.19% 22.15% 29.74% 26.05% 36.31%

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2019 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 3,967 ÷ 21,700 = 18.28%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Comcast Corp.’s CTR decreased from 2017 to 2018 and from 2018 to 2019.