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’s debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Intel Corp., ROIC calculation, comparison to benchmarks
| Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 22,939 | 21,552 | 17,527 | 6,707 | 10,442 | |
| Invested capital2 | 81,967 | 80,607 | 73,515 | 66,837 | 63,236 | |
| Performance Ratio | ||||||
| ROIC3 | 27.99% | 26.74% | 23.84% | 10.03% | 16.51% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Advanced Micro Devices Inc. | 30.67% | 11.73% | 13.53% | 2.05% | -14.86% | |
| Analog Devices Inc. | 6.95% | 8.23% | 4.98% | 0.38% | 23.10% | |
| Apple Inc. | 150.10% | 98.34% | 83.60% | 101.81% | 114.33% | |
| Applied Materials Inc. | 29.58% | 28.91% | 29.78% | 31.69% | 20.54% | |
| Broadcom Inc. | 4.80% | 5.00% | 10.03% | 3.52% | -1.55% | |
| Cisco Systems Inc. | 24.12% | 18.12% | 2.85% | 19.68% | 23.64% | |
| Lam Research Corp. | 24.20% | 20.10% | 25.72% | 31.56% | 10.67% | |
| Micron Technology Inc. | 6.84% | 17.15% | 39.70% | 18.99% | -0.03% | |
| NVIDIA Corp. | 19.63% | 79.86% | 41.40% | 40.74% | 31.19% | |
| Qualcomm Inc. | 27.48% | 28.27% | -16.74% | 1.92% | 27.12% | |
| Texas Instruments Inc. | 43.48% | 43.15% | 44.66% | 32.30% | 28.86% | |
Based on: 10-K (filing date: 2021-01-22), 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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2020 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 22,939 ÷ 81,967 = 27.99%
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 2018 to 2019 and from 2019 to 2020. |
Decomposition of ROIC
Intel Corp., decomposition of ROIC
Based on: 10-K (filing date: 2021-01-22), 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).
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 2020 year is the increase in efficiency measured by turnover of capital (TO) ratio.
Operating Profit Margin (OPM)
Intel Corp., OPM calculation, comparison to benchmarks
| Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 22,939 | 21,552 | 17,527 | 6,707 | 10,442 | |
| Add: Cash operating taxes2 | 2,482 | 2,483 | 3,889 | 9,994 | 2,090 | |
| Net operating profit before taxes (NOPBT) | 25,421 | 24,035 | 21,416 | 16,700 | 12,532 | |
| Net revenue | 77,867 | 71,965 | 70,848 | 62,761 | 59,387 | |
| Add: Increase (decrease) in deferred income | — | — | (1,656) | (127) | (935) | |
| Adjusted net revenue | 77,867 | 71,965 | 69,192 | 62,634 | 58,452 | |
| Profitability Ratio | ||||||
| OPM3 | 32.65% | 33.40% | 30.95% | 26.66% | 21.44% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Advanced Micro Devices Inc. | 13.98% | 6.80% | 5.88% | 2.42% | -5.94% | |
| Analog Devices Inc. | 26.98% | 29.60% | 30.11% | 21.16% | 30.31% | |
| Apple Inc. | 24.65% | 24.64% | 26.58% | 26.64% | 26.39% | |
| Applied Materials Inc. | 25.57% | 23.89% | 26.89% | 29.01% | 22.15% | |
| Broadcom Inc. | 17.10% | 15.65% | 24.22% | 12.14% | -2.93% | |
| Cisco Systems Inc. | 30.47% | 25.46% | 26.21% | 27.94% | 27.26% | |
| Lam Research Corp. | 27.26% | 20.46% | 29.43% | 27.76% | 18.88% | |
| Micron Technology Inc. | 14.37% | 29.89% | 47.86% | 28.39% | 1.37% | |
| NVIDIA Corp. | 26.65% | 33.09% | 32.77% | 24.50% | 14.96% | |
| Qualcomm Inc. | 24.17% | 29.86% | 1.24% | 9.45% | 26.09% | |
| Texas Instruments Inc. | 43.13% | 40.81% | 43.25% | 41.06% | 37.64% | |
Based on: 10-K (filing date: 2021-01-22), 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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2020 Calculation
OPM = 100 × NOPBT ÷ Adjusted net revenue
= 100 × 25,421 ÷ 77,867 = 32.65%
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 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |
Turnover of Capital (TO)
Intel Corp., TO calculation, comparison to benchmarks
| Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 77,867 | 71,965 | 70,848 | 62,761 | 59,387 | |
| Add: Increase (decrease) in deferred income | — | — | (1,656) | (127) | (935) | |
| Adjusted net revenue | 77,867 | 71,965 | 69,192 | 62,634 | 58,452 | |
| Invested capital1 | 81,967 | 80,607 | 73,515 | 66,837 | 63,236 | |
| Efficiency Ratio | ||||||
| TO2 | 0.95 | 0.89 | 0.94 | 0.94 | 0.92 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Advanced Micro Devices Inc. | 2.23 | 1.97 | 2.43 | 2.39 | 1.90 | |
| Analog Devices Inc. | 0.31 | 0.33 | 0.33 | 0.26 | 0.85 | |
| Apple Inc. | 7.10 | 4.79 | 8.83 | 4.47 | 5.26 | |
| Applied Materials Inc. | 1.31 | 1.44 | 1.52 | 1.20 | 1.09 | |
| Broadcom Inc. | 0.36 | 0.38 | 0.47 | 0.35 | 0.29 | |
| Cisco Systems Inc. | 0.96 | 0.95 | 1.00 | 0.87 | 1.04 | |
| Lam Research Corp. | 1.02 | 1.15 | 1.15 | 1.15 | 0.64 | |
| Micron Technology Inc. | 0.51 | 0.60 | 0.86 | 0.71 | 0.56 | |
| NVIDIA Corp. | 0.77 | 2.45 | 1.50 | 1.71 | 2.08 | |
| Qualcomm Inc. | 1.33 | 1.13 | 1.21 | 0.45 | 1.30 | |
| Texas Instruments Inc. | 1.12 | 1.19 | 1.26 | 1.26 | 1.11 | |
Based on: 10-K (filing date: 2021-01-22), 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).
1 Invested capital. See details »
2 2020 Calculation
TO = Adjusted net revenue ÷ Invested capital
= 77,867 ÷ 81,967 = 0.95
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 deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Effective Cash Tax Rate (CTR)
Intel Corp., CTR calculation, comparison to benchmarks
| Dec 26, 2020 | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 22,939 | 21,552 | 17,527 | 6,707 | 10,442 | |
| Add: Cash operating taxes2 | 2,482 | 2,483 | 3,889 | 9,994 | 2,090 | |
| Net operating profit before taxes (NOPBT) | 25,421 | 24,035 | 21,416 | 16,700 | 12,532 | |
| Tax Rate | ||||||
| CTR3 | 9.76% | 10.33% | 18.16% | 59.84% | 16.68% | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Advanced Micro Devices Inc. | 1.75% | 12.55% | 5.44% | 64.46% | — | |
| Analog Devices Inc. | 16.31% | 14.82% | 50.33% | 93.08% | 10.78% | |
| Apple Inc. | 14.27% | 16.60% | 64.38% | 14.50% | 17.63% | |
| Applied Materials Inc. | 11.98% | 16.09% | 27.18% | 8.67% | 14.87% | |
| Broadcom Inc. | 22.63% | 15.10% | 11.38% | 16.03% | — | |
| Cisco Systems Inc. | 17.40% | 24.92% | 89.18% | 19.15% | 16.48% | |
| Lam Research Corp. | 13.09% | 14.26% | 24.00% | 1.52% | 11.77% | |
| Micron Technology Inc. | 6.13% | 4.94% | 3.36% | 6.08% | 104.15% | |
| NVIDIA Corp. | 4.59% | 1.47% | 15.99% | 2.78% | -0.02% | |
| Qualcomm Inc. | 14.19% | 16.37% | 1,215.96% | 54.68% | 20.15% | |
| Texas Instruments Inc. | 9.63% | 11.38% | 18.14% | 37.69% | 31.13% | |
Based on: 10-K (filing date: 2021-01-22), 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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2020 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 2,482 ÷ 25,421 = 9.76%
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 2018 to 2019 and from 2019 to 2020. |