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)
Decomposition of ROIC
Operating Profit Margin (OPM)
Turnover of Capital (TO)
Effective Cash Tax Rate (CTR)

Intel Corp., ROIC calculation, comparison to benchmarks

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)¹	21,552	17,527	6,707	10,442	10,557
Invested capital²	80,607	73,515	66,837	63,236	61,118
Performance Ratio
ROIC³	26.74%	23.84%	10.03%	16.51%	17.27%
Benchmarks
ROIC, Competitors⁴
Advanced Micro Devices Inc.	11.73%	13.53%	2.05%	-14.86%	-27.01%
Analog Devices Inc.	8.23%	4.98%	0.38%	23.10%	15.63%
Apple Inc.	98.34%	83.60%	101.81%	114.33%	142.21%
Applied Materials Inc.	28.91%	29.78%	31.69%	20.54%	11.10%
Broadcom Inc.	5.00%	10.03%	3.52%	-1.55%	15.58%
Cisco Systems Inc.	18.12%	2.85%	19.68%	23.64%	22.15%
Lam Research Corp.	20.10%	25.72%	31.56%	10.67%	15.45%
Micron Technology Inc.	17.15%	39.70%	18.99%	-0.03%	19.12%
NVIDIA Corp.	79.86%	41.40%	40.74%	31.19%	28.18%
Qualcomm Inc.	28.27%	-16.74%	1.92%	27.12%	19.77%
Texas Instruments Inc.	43.15%	44.66%	32.30%	28.86%	24.07%

Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).

¹ NOPAT. See details »

² Invested capital. See details »

³ 2019 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 21,552 ÷ 80,607 = 26.74%

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.	Intel Corp.’s ROIC improved from 2017 to 2018 and from 2018 to 2019.

Intel Corp., decomposition of ROIC


	ROIC	=	OPM¹	×	TO²	×	1 – CTR³
Dec 28, 2019	26.74%	=	33.40%	×	0.89	×	89.67%
Dec 29, 2018	23.84%	=	30.95%	×	0.94	×	81.84%
Dec 30, 2017	10.03%	=	26.66%	×	0.94	×	40.16%
Dec 31, 2016	16.51%	=	21.44%	×	0.92	×	83.32%
Dec 26, 2015	17.27%	=	25.84%	×	0.91	×	73.75%

Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).

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 decrease in effective cash tax rate (CTR).

Intel Corp., OPM calculation, comparison to benchmarks

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)¹	21,552	17,527	6,707	10,442	10,557
Add: Cash operating taxes²	2,483	3,889	9,994	2,090	3,757
Net operating profit before taxes (NOPBT)	24,035	21,416	16,700	12,532	14,313

Net revenue	71,965	70,848	62,761	59,387	55,355
Add: Increase (decrease) in deferred income	—	(1,656)	(127)	(935)	30
Adjusted net revenue	71,965	69,192	62,634	58,452	55,385
Profitability Ratio
OPM³	33.40%	30.95%	26.66%	21.44%	25.84%
Benchmarks
OPM, Competitors⁴
Advanced Micro Devices Inc.	6.80%	5.88%	2.42%	-5.94%	-12.88%
Analog Devices Inc.	29.60%	30.11%	21.16%	30.31%	23.13%
Apple Inc.	24.64%	26.58%	26.64%	26.39%	30.76%
Applied Materials Inc.	23.89%	26.89%	29.01%	22.15%	17.40%
Broadcom Inc.	15.65%	24.22%	12.14%	-2.93%	24.07%
Cisco Systems Inc.	25.46%	26.21%	27.94%	27.26%	23.84%
Lam Research Corp.	20.46%	29.43%	27.76%	18.88%	18.03%
Micron Technology Inc.	29.89%	47.86%	28.39%	1.37%	21.08%
NVIDIA Corp.	33.09%	32.77%	24.50%	14.96%	15.98%
Qualcomm Inc.	29.86%	1.24%	9.45%	26.09%	20.10%
Texas Instruments Inc.	40.81%	43.25%	41.06%	37.64%	32.94%

Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).

¹ NOPAT. See details »

² Cash operating taxes. See details »

³ 2019 Calculation
OPM = 100 × NOPBT ÷ Adjusted net revenue
= 100 × 24,035 ÷ 71,965 = 33.40%

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.	Intel Corp.’s OPM improved from 2017 to 2018 and from 2018 to 2019.

Intel Corp., TO calculation, comparison to benchmarks

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015
Selected Financial Data (US$ in millions)
Net revenue	71,965	70,848	62,761	59,387	55,355
Add: Increase (decrease) in deferred income	—	(1,656)	(127)	(935)	30
Adjusted net revenue	71,965	69,192	62,634	58,452	55,385

Invested capital¹	80,607	73,515	66,837	63,236	61,118
Efficiency Ratio
TO²	0.89	0.94	0.94	0.92	0.91
Benchmarks
TO, Competitors³
Advanced Micro Devices Inc.	1.97	2.43	2.39	1.90	1.82
Analog Devices Inc.	0.33	0.33	0.26	0.85	0.86
Apple Inc.	4.79	8.83	4.47	5.26	6.05
Applied Materials Inc.	1.44	1.52	1.20	1.09	0.83
Broadcom Inc.	0.38	0.47	0.35	0.29	0.81
Cisco Systems Inc.	0.95	1.00	0.87	1.04	1.13
Lam Research Corp.	1.15	1.15	1.15	0.64	0.95
Micron Technology Inc.	0.60	0.86	0.71	0.56	0.97
NVIDIA Corp.	2.45	1.50	1.71	2.08	1.89
Qualcomm Inc.	1.13	1.21	0.45	1.30	1.21
Texas Instruments Inc.	1.19	1.26	1.26	1.11	1.06

Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).

¹ Invested capital. See details »

² 2019 Calculation
TO = Adjusted net revenue ÷ Invested capital
= 71,965 ÷ 80,607 = 0.89

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.	Intel Corp.’s TO improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Intel Corp., CTR calculation, comparison to benchmarks

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)¹	21,552	17,527	6,707	10,442	10,557
Add: Cash operating taxes²	2,483	3,889	9,994	2,090	3,757
Net operating profit before taxes (NOPBT)	24,035	21,416	16,700	12,532	14,313
Tax Rate
CTR³	10.33%	18.16%	59.84%	16.68%	26.25%
Benchmarks
CTR, Competitors⁴
Advanced Micro Devices Inc.	12.55%	5.44%	64.46%	—	—
Analog Devices Inc.	14.82%	50.33%	93.08%	10.78%	21.70%
Apple Inc.	16.60%	64.38%	14.50%	17.63%	23.61%
Applied Materials Inc.	16.09%	27.18%	8.67%	14.87%	23.00%
Broadcom Inc.	15.10%	11.38%	16.03%	—	19.97%
Cisco Systems Inc.	24.92%	89.18%	19.15%	16.48%	17.77%
Lam Research Corp.	14.26%	24.00%	1.52%	11.77%	10.13%
Micron Technology Inc.	4.94%	3.36%	6.08%	104.15%	6.24%
NVIDIA Corp.	1.47%	15.99%	2.78%	-0.02%	6.81%
Qualcomm Inc.	16.37%	1,215.96%	54.68%	20.15%	19.01%
Texas Instruments Inc.	11.38%	18.14%	37.69%	31.13%	30.79%

Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).

¹ NOPAT. See details »

² Cash operating taxes. See details »

³ 2019 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 2,483 ÷ 24,035 = 10.33%

⁴ Click competitor name to see calculations.

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

Intel Corp. (NASDAQ:INTC)

Return on Capital (ROC)

Return on Invested Capital (ROIC)

Decomposition of ROIC

Operating Profit Margin (OPM)

Turnover of Capital (TO)

Effective Cash Tax Rate (CTR)