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.
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- Income Statement
- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Selected Financial Data since 2005
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Return on Invested Capital (ROIC)
Comcast Corp., ROIC calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| ROIC3 | ||||||
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Trade Desk Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 NOPAT. See details »
2 Invested capital. See details »
3 2025 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The period under review demonstrates significant fluctuations in Return on Invested Capital (ROIC). Net operating profit after taxes (NOPAT) and invested capital both exhibit variability, impacting the overall ROIC performance.
- Net Operating Profit After Taxes (NOPAT)
- NOPAT experienced a substantial decrease from 2021 to 2022, falling from US$19,205 million to US$6,839 million. A recovery was then observed in 2023, with NOPAT reaching US$16,517 million. This upward trend continued into 2024, reaching US$18,803 million, and accelerated significantly in 2025, culminating in US$26,540 million. This indicates improving operational profitability in the later years of the period.
- Invested Capital
- Invested capital decreased from US$229,271 million in 2021 to US$213,299 million in 2022. It continued to decline slightly in 2023, reaching US$211,438 million. A modest increase was noted in 2024, with invested capital at US$215,138 million, followed by a more substantial rise to US$233,085 million in 2025. The increase in 2025 suggests increased investment in the business.
- Return on Invested Capital (ROIC)
- Consequently, ROIC mirrored the NOPAT trend. It decreased sharply from 8.38% in 2021 to 3.21% in 2022. A recovery began in 2023, with ROIC reaching 7.81%. Further improvement was seen in 2024, with ROIC at 8.74%, and a significant increase in 2025, reaching 11.39%. The 2025 ROIC represents the highest value within the observed period, indicating improved efficiency in capital allocation and utilization. The correlation between NOPAT and ROIC is strong, demonstrating that changes in operational profitability directly influence returns to investors.
The substantial increase in ROIC in 2025, driven by both increased NOPAT and invested capital, warrants further investigation to understand the underlying drivers of this performance. The initial decline in ROIC in 2022, coinciding with a significant drop in NOPAT, also merits attention to identify the contributing factors and assess their potential recurrence.
Decomposition of ROIC
Comcast Corp., decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | = | × | × | ||||
| Dec 31, 2024 | = | × | × | ||||
| Dec 31, 2023 | = | × | × | ||||
| Dec 31, 2022 | = | × | × | ||||
| Dec 31, 2021 | = | × | × |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The period demonstrates significant fluctuations in the components of return on invested capital. Overall, ROIC experienced volatility, beginning at 8.38% and concluding at 11.39% over the analyzed timeframe. A detailed examination of the contributing factors reveals key drivers of these changes.
- Operating Profit Margin (OPM)
- Operating profit margin exhibited substantial variation. It decreased notably from 20.21% in 2021 to 10.68% in 2022, before recovering to 20.88% in 2023. A slight decline to 18.88% occurred in 2024, followed by a considerable increase to 24.91% in 2025. This suggests sensitivity to underlying operational factors and potential cost management initiatives.
- Turnover of Capital (TO)
- Turnover of capital remained relatively stable between 2021 and 2024, increasing from 0.51 to 0.58. A modest decrease to 0.53 was observed in 2025. This indicates a consistent, though not dramatically changing, efficiency in utilizing capital to generate revenue.
- Effective Cash Tax Rate Adjustment (1 – CTR)
- The adjustment for the effective cash tax rate showed considerable movement. Beginning at a high of 81.62% in 2021, it decreased significantly to 52.99% in 2022. A recovery to 64.67% occurred in 2023, followed by increases to 80.27% and finally 85.75% in 2025. This fluctuation significantly impacts the after-tax profitability reflected in ROIC.
The interplay between these three components – operating profit margin, capital turnover, and the tax rate adjustment – explains the observed ROIC trend. The sharp decline in ROIC from 2021 to 2022 was primarily driven by the substantial decrease in operating profit margin, despite a slight increase in capital turnover. The subsequent recovery in ROIC from 2022 to 2025 was influenced by improvements in both operating profit margin and the effective cash tax rate adjustment, with capital turnover remaining relatively consistent. The most significant increase in ROIC occurred between 2024 and 2025, coinciding with the largest increases in both operating profit margin and the tax rate adjustment.
Operating Profit Margin (OPM)
Comcast Corp., OPM calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenue | ||||||
| Profitability Ratio | ||||||
| OPM3 | ||||||
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Trade Desk Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenue
= 100 × ÷ =
4 Click competitor name to see calculations.
The operating profit margin exhibited considerable fluctuation over the five-year period. Net operating profit before taxes also demonstrated volatility, though with an overall upward trajectory. Adjusted revenue showed a consistent, albeit moderate, increase annually.
- Operating Profit Margin (OPM)
- The operating profit margin began at 20.21% in 2021. A substantial decline was observed in 2022, falling to 10.68%. The margin then recovered significantly in 2023, reaching 20.88%, before decreasing slightly to 18.88% in 2024. The most recent year, 2025, saw a marked increase, with the operating profit margin rising to 24.91%. This represents the highest margin observed within the analyzed timeframe.
- Net Operating Profit Before Taxes (NOPBT)
- Net operating profit before taxes decreased from US$23,531 million in 2021 to US$12,906 million in 2022, mirroring the decline in the operating profit margin. A strong recovery occurred in 2023, with NOPBT increasing to US$25,542 million. This was followed by a slight decrease to US$23,424 million in 2024. The final year, 2025, showed further growth, reaching US$30,952 million, the highest value recorded during the period.
- Adjusted Revenue
- Adjusted revenue increased steadily throughout the period. From US$116,407 million in 2021, it rose to US$120,807 million in 2022, US$122,317 million in 2023, US$124,043 million in 2024, and finally reached US$124,253 million in 2025. The rate of revenue growth slowed over time, with the smallest increase occurring between 2024 and 2025.
The relationship between adjusted revenue and NOPBT suggests that while revenue consistently increased, profitability was more variable. The significant drop in OPM and NOPBT in 2022 warrants further investigation to determine the underlying causes. The strong performance in 2025, with both OPM and NOPBT at their highest levels, indicates a potential improvement in operational efficiency or pricing power.
Turnover of Capital (TO)
Comcast Corp., TO calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenue | ||||||
| Invested capital1 | ||||||
| Efficiency Ratio | ||||||
| TO2 | ||||||
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Alphabet Inc. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Trade Desk Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Invested capital. See details »
2 2025 Calculation
TO = Adjusted revenue ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
The period under review demonstrates fluctuations in the turnover of capital, alongside changes in adjusted revenue and invested capital. Adjusted revenue exhibits a consistent, albeit decelerating, increase from 2021 to 2025. Conversely, invested capital initially decreased before stabilizing and then increasing in the final year. The interplay between these figures results in a dynamic turnover of capital ratio.
- Turnover of Capital (TO)
- The turnover of capital ratio increased from 0.51 in 2021 to 0.58 in both 2022 and 2023, indicating improved efficiency in generating revenue from invested capital during those years. This suggests the company was becoming more effective at utilizing its capital base to drive sales. However, in 2024, the ratio remained stable at 0.58. A subsequent decrease to 0.53 in 2025 suggests a potential decline in capital utilization efficiency, despite continued revenue growth.
The initial rise in the turnover of capital ratio coincided with a decrease in invested capital, amplifying the effect of revenue growth. The stabilization of the ratio in 2023 and 2024 occurred as invested capital also stabilized. The final year’s decline in the ratio, despite a slight increase in adjusted revenue, is attributable to a more substantial increase in invested capital. This suggests that the additional capital deployed in 2025 did not yield a proportional increase in revenue.
- Revenue Trend
- Adjusted revenue increased consistently throughout the period, growing from US$116,407 million in 2021 to US$124,253 million in 2025. The rate of growth, however, slowed over time. The largest year-over-year increase occurred between 2021 and 2022 (US$4,400 million), while the increase between 2024 and 2025 was minimal (US$200 million).
- Invested Capital Trend
- Invested capital decreased from US$229,271 million in 2021 to US$211,438 million in 2023, representing a reduction in the capital base. This trend reversed in 2024, with invested capital increasing to US$215,138 million, and continued in 2025, reaching US$233,085 million. The increase in 2025 represents the largest single-year change in invested capital throughout the observed period.
Overall, the observed trends suggest a period of improving capital efficiency followed by a potential weakening in the most recent year. Further investigation into the drivers behind the increased invested capital in 2025 would be beneficial to understand the reasons for the decline in the turnover of capital ratio.
Effective Cash Tax Rate (CTR)
Comcast Corp., CTR calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Tax Rate | ||||||
| CTR3 | ||||||
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Trade Desk Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
The effective cash tax rate exhibited considerable fluctuation over the five-year period. Cash operating taxes and net operating profit before taxes both demonstrated variability, influencing the observed rate changes.
- Effective Cash Tax Rate (CTR)
- The effective cash tax rate began at 18.38% in 2021, then increased substantially to 47.01% in 2022. This significant rise suggests a notable difference between accounting profit and actual cash taxes paid during that year. A subsequent decrease to 35.33% occurred in 2023, indicating some moderation in the cash tax burden. Further declines were observed in 2024 and 2025, with the rate falling to 19.73% and 14.25% respectively. This recent downward trend suggests improved tax efficiency or changes in the composition of taxable income.
- Cash Operating Taxes
- Cash operating taxes increased from US$4,326 million in 2021 to US$6,068 million in 2022, aligning with the increase in the effective cash tax rate. A substantial rise to US$9,025 million was recorded in 2023, before decreasing to US$4,622 million in 2024 and US$4,412 million in 2025. These fluctuations indicate changes in the company’s taxable income and potentially the impact of tax planning strategies.
- Net Operating Profit Before Taxes (NOPBT)
- Net operating profit before taxes decreased from US$23,531 million in 2021 to US$12,906 million in 2022, contributing to the higher effective cash tax rate observed in that year. NOPBT then increased to US$25,542 million in 2023, followed by a slight decrease to US$23,424 million in 2024. A further increase to US$30,952 million was seen in 2025. These changes in NOPBT, in conjunction with the fluctuations in cash operating taxes, explain the variations in the effective cash tax rate.
The interplay between cash operating taxes and net operating profit before taxes is critical in understanding the observed trends in the effective cash tax rate. The significant increase in the rate during 2022, followed by a subsequent decline, warrants further investigation into the underlying factors driving these changes.