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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- Cash Flow Statement
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
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Return on Invested Capital (ROIC)
Comcast Corp., ROIC calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 NOPAT. See details »
2 Invested capital. See details »
3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net Operating Profit After Taxes (NOPAT)
- The net operating profit after taxes showed significant fluctuations over the five-year period. Starting at 14,617 million USD in 2020, it increased notably to 19,205 million USD in 2021. However, in 2022, there was a sharp decline to 6,839 million USD, less than half of the previous year's figure. This was followed by a recovery in 2023 to 16,517 million USD and a continued increase to 18,803 million USD in 2024. Overall, NOPAT demonstrated volatility with a steep dip in 2022 but regained strength in subsequent years.
- Invested Capital
- Invested capital showed relative stability with a slight downward trend initially. It increased from 224,149 million USD in 2020 to 229,233 million USD in 2021. From 2021 onwards, there was a gradual decrease to 213,605 million USD in 2022 and further to 211,709 million USD in 2023. In 2024, the figure rose slightly to 215,148 million USD. Overall, invested capital fluctuated within a narrow range, with a modest net decline from 2020 to 2024.
- Return on Invested Capital (ROIC)
- ROIC experienced variability consistent with the movements in NOPAT and invested capital. In 2020, the return was 6.52%, which improved substantially to 8.38% in 2021. The return then decreased sharply to 3.2% in 2022, reflecting the significant drop in profitability. This metric rebounded in 2023, reaching 7.8%, and further increased to 8.74% in 2024, marking the highest return in the five-year span. The trend indicates a strong recovery in capital efficiency following the decline in 2022.
Decomposition of ROIC
Comcast Corp., decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | = | × | × | ||||
| Dec 31, 2023 | = | × | × | ||||
| Dec 31, 2022 | = | × | × | ||||
| Dec 31, 2021 | = | × | × | ||||
| Dec 31, 2020 | = | × | × |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
- Operating Profit Margin (OPM)
- The operating profit margin showed variability over the observed periods. Initially, it increased from 18.8% in 2020 to 20.21% in 2021, indicating an improvement in operational efficiency. However, there was a significant decline to 10.68% in 2022, which could suggest heightened costs or reduced revenue efficiency during that year. This loss was partially recovered in 2023 when the margin rose sharply to 20.88%, followed by a slight reduction to 18.88% in 2024, still reflecting a stronger operational performance compared to 2020.
- Turnover of Capital (TO)
- Turnover of capital demonstrated consistent growth over the five-year span. Starting at a ratio of 0.46 in 2020, it incrementally increased each year, reaching 0.58 in both 2023 and 2024. This upward trend implies a gradual improvement in asset utilization efficiency, potentially indicating better revenue generation relative to the capital employed.
- 1 – Effective Cash Tax Rate (CTR)
- The effective cash tax rate, expressed as 1 minus the CTR, exhibited substantial fluctuations. It started at 74.85% in 2020, rising to a peak of 81.62% in 2021, suggesting changes in tax expenses or taxable income levels. There was a significant decrease to 52.99% in 2022, indicating a lower effective tax burden or alterations in tax strategies. This metric then increased again to 64.67% in 2023 and further to 80.27% in 2024, reflecting a recovery to higher tax rates or effective tax payments closer to previous levels.
- Return on Invested Capital (ROIC)
- Return on invested capital showed a mixed performance. The value grew from 6.52% in 2020 to 8.38% in 2021, signifying enhanced profitability from capital investments. Nevertheless, it dropped sharply to 3.2% in 2022, indicating a considerable decline in capital returns, likely tied to the decreased operating profit margin and changes in tax rate that year. Subsequent periods saw a recovery, with ROIC rising to 7.8% in 2023 and reaching 8.74% in 2024, suggesting renewed efficiency and profitability in utilizing invested capital.
Operating Profit Margin (OPM)
Comcast Corp., OPM calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenue
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net Operating Profit Before Taxes (NOPBT)
- The net operating profit before taxes demonstrates notable fluctuations over the analyzed periods. It increased significantly from 19,528 million US dollars in 2020 to 23,531 million in 2021, followed by a sharp decline to 12,906 million in 2022. However, the figure rebounded strongly in 2023, reaching 25,542 million, which is the highest value observed in the series. In 2024, there is a slight decrease to 23,424 million, yet remaining above the levels of 2020 and 2022. This pattern suggests a pronounced volatility in operating profitability with a recovery phase after the 2022 dip.
- Adjusted Revenue
- Adjusted revenue displays a steady upward trend across the five years under review. It grew from 103,891 million US dollars in 2020 to 124,043 million in 2024. Each year shows an increase compared to the previous year, although the growth rate appears to slow slightly in the later years. The continuous increase in revenue indicates consistent expansion or improved sales performance.
- Operating Profit Margin (OPM)
- The operating profit margin exhibits considerable variability corresponding with the changes in NOPBT. Starting from 18.8% in 2020, it rose to 20.21% in 2021, then declined steeply to 10.68% in 2022. The margin recovered to 20.88% in 2023, marking the peak value in the period, followed by a decline to 18.88% in 2024. This fluctuation mirrors the profitability challenges and recoveries seen in the net operating profit figures, implying margin compression in 2022 and subsequent improvement.
- Summary
- The analyzed metrics illustrate a scenario where revenue growth has been consistent and steady, whereas profitability indicators have been more volatile. The sharp drop in both net operating profit before taxes and operating profit margin in 2022 indicates an operational or market challenge during that year, which was largely overcome in the following year. Although there was a slight setback in profitability in 2024, overall profitability remains healthy relative to 2020. The data suggests effective management of operating expenses and cost structures after 2022 to restore profit margins despite continuous revenue growth.
Turnover of Capital (TO)
Comcast Corp., TO calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Invested capital. See details »
2 2024 Calculation
TO = Adjusted revenue ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
- Adjusted Revenue
- The adjusted revenue shows a consistent upward trend over the five-year period, increasing from $103,891 million in 2020 to $124,043 million in 2024. The growth is steady, with the largest increment occurring between 2020 and 2021. After that, revenue continues to rise but at a slightly decelerated pace.
- Invested Capital
- The invested capital exhibits more variability across the years. It increased marginally from $224,149 million in 2020 to $229,233 million in 2021, then declined to $213,605 million by 2022. The capital base remains relatively stable afterward, with slight fluctuations ending at $215,148 million in 2024, indicating possible capital optimization or divestitures.
- Turnover of Capital (TO)
- The turnover of capital ratio demonstrates continuous improvement throughout the period. Starting at 0.46 in 2020, it rises steadily to 0.58 by 2023, maintaining this level into 2024. This suggests increasing efficiency in generating revenue from the invested capital over time.
- Summary
- The data indicates an overall growth in revenue accompanied by a reduction and stabilization of invested capital, leading to enhanced capital turnover. This reflects improved operational efficiency and leveraging of capital assets to achieve higher revenue levels. The upward trend of the turnover ratio underscores the company's ability to utilize its capital more effectively year over year.
Effective Cash Tax Rate (CTR)
Comcast Corp., CTR calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
- Cash Operating Taxes
- The cash operating taxes exhibit a fluctuating pattern over the five-year period. Starting at 4,911 million USD in 2020, there was a decline to 4,326 million USD in 2021. This was followed by a significant increase to 6,068 million USD in 2022 and a peak at 9,025 million USD in 2023. However, the figure sharply decreased again to 4,622 million USD in 2024. The volatility in cash taxes suggests periodic changes in taxable income or tax planning strategies.
- Net Operating Profit Before Taxes (NOPBT)
- NOPBT values indicate some variability across the years. The profit increased from 19,528 million USD in 2020 to 23,531 million USD in 2021. There was a marked decline in 2022 to 12,906 million USD, representing nearly a 45% drop compared to the previous year. This was followed by a strong recovery in 2023, with NOPBT reaching 25,542 million USD, the highest in the observed period. In 2024, NOPBT slightly decreased to 23,424 million USD but remained relatively strong. These fluctuations may reflect operational performance changes, market conditions, or non-recurring events.
- Effective Cash Tax Rate (CTR)
- The effective cash tax rate shows significant variation year over year. It started at 25.15% in 2020 and decreased notably to 18.38% in 2021. In 2022, the rate sharply increased to 47.01%, which correlates with the drop in NOPBT and the rise in cash taxes for that year. The rate then declined to 35.33% in 2023 and further to 19.73% in 2024. This variability suggests changes in tax regulations, credits, or deferred tax management influencing the effective tax burden relative to operating profits.
- Overall Observations
- The analyzed financial data indicate a volatile operational and tax environment over the five years. NOPBT experienced pronounced fluctuations, with a major downturn in 2022 followed by a rebound in 2023. Cash operating taxes moved inconsistently, not always proportional to NOPBT changes, likely influenced by tax policy or external factors. The effective cash tax rate exhibited wide swings, pointing towards fluctuating tax efficiency or legislative impacts. Strategic initiatives or external events may explain these patterns, and further analysis could clarify the drivers behind these dynamics.