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.
Return on Invested Capital (ROIC)
NXP Semiconductors N.V., ROIC calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 2,126) | 40) | 303) | 2,196) | 1,630) | |
| Invested capital2 | 16,745) | 16,335) | 16,952) | 18,006) | 20,519) | |
| Performance Ratio | ||||||
| ROIC3 | 12.70% | 0.25% | 1.79% | 12.20% | 7.94% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Advanced Micro Devices Inc. | 56.77% | 30.47% | 12.00% | — | — | |
| Analog Devices Inc. | 2.37% | 6.95% | 8.23% | 4.98% | — | |
| Applied Materials Inc. | 41.96% | 29.68% | 28.97% | 36.36% | — | |
| Broadcom Inc. | 11.02% | 4.80% | 5.00% | 10.03% | — | |
| Intel Corp. | 22.03% | 28.01% | 26.78% | — | — | |
| KLA Corp. | 31.64% | 19.88% | 20.98% | 39.57% | — | |
| Lam Research Corp. | 41.94% | 24.20% | 20.10% | 25.72% | — | |
| Micron Technology Inc. | 12.88% | 6.84% | 17.15% | 39.70% | — | |
| NVIDIA Corp. | 33.44% | 19.63% | 80.01% | — | — | |
| ON Semiconductor Corp. | 16.06% | 3.81% | 4.97% | — | — | |
| Qualcomm Inc. | 42.56% | 27.48% | 28.27% | -16.74% | — | |
| Texas Instruments Inc. | 48.28% | 43.48% | 43.15% | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
1 NOPAT. See details »
2 Invested capital. See details »
3 2021 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,126 ÷ 16,745 = 12.70%
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. | NXP Semiconductors N.V. ROIC deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Decomposition of ROIC
NXP Semiconductors N.V., decomposition of ROIC
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the increase in return on invested capital (ROIC) over 2021 year is the decrease in effective cash tax rate (CTR).
Operating Profit Margin (OPM)
NXP Semiconductors N.V., OPM calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 2,126) | 40) | 303) | 2,196) | 1,630) | |
| Add: Cash operating taxes2 | 384) | 355) | 275) | 445) | 386) | |
| Net operating profit before taxes (NOPBT) | 2,511) | 395) | 578) | 2,640) | 2,015) | |
| Revenue | 11,063) | 8,612) | 8,877) | 9,407) | 9,256) | |
| Profitability Ratio | ||||||
| OPM3 | 22.69% | 4.59% | 6.52% | 28.07% | 21.77% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Advanced Micro Devices Inc. | 22.70% | 13.87% | 6.93% | — | — | |
| Analog Devices Inc. | 20.52% | 26.98% | 29.60% | 30.11% | — | |
| Applied Materials Inc. | 30.54% | 25.67% | 23.94% | 28.65% | — | |
| Broadcom Inc. | 31.06% | 17.10% | 15.65% | 24.22% | — | |
| Intel Corp. | 28.05% | 32.68% | 33.46% | — | — | |
| KLA Corp. | 36.39% | 26.09% | 32.80% | 39.49% | — | |
| Lam Research Corp. | 34.25% | 27.26% | 20.46% | 29.43% | — | |
| Micron Technology Inc. | 23.15% | 14.37% | 29.89% | 47.86% | — | |
| NVIDIA Corp. | 28.45% | 26.65% | 33.15% | — | — | |
| ON Semiconductor Corp. | 19.27% | 6.72% | 7.62% | — | — | |
| Qualcomm Inc. | 30.10% | 24.17% | 29.86% | 1.24% | — | |
| Texas Instruments Inc. | 49.60% | 43.13% | 40.81% | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2021 Calculation
OPM = 100 × NOPBT ÷ Revenue
= 100 × 2,511 ÷ 11,063 = 22.69%
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. | NXP Semiconductors N.V. OPM deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Turnover of Capital (TO)
NXP Semiconductors N.V., TO calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 11,063) | 8,612) | 8,877) | 9,407) | 9,256) | |
| Invested capital1 | 16,745) | 16,335) | 16,952) | 18,006) | 20,519) | |
| Efficiency Ratio | ||||||
| TO2 | 0.66 | 0.53 | 0.52 | 0.52 | 0.45 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Advanced Micro Devices Inc. | 2.65 | 2.24 | 1.98 | — | — | |
| Analog Devices Inc. | 0.16 | 0.31 | 0.33 | 0.33 | — | |
| Applied Materials Inc. | 1.57 | 1.31 | 1.44 | 1.69 | — | |
| Broadcom Inc. | 0.42 | 0.36 | 0.38 | 0.47 | — | |
| Intel Corp. | 0.89 | 0.95 | 0.89 | — | — | |
| KLA Corp. | 1.01 | 0.89 | 0.72 | 1.54 | — | |
| Lam Research Corp. | 1.40 | 1.02 | 1.15 | 1.15 | — | |
| Micron Technology Inc. | 0.60 | 0.51 | 0.60 | 0.86 | — | |
| NVIDIA Corp. | 1.28 | 0.77 | 2.45 | — | — | |
| ON Semiconductor Corp. | 0.89 | 0.76 | 0.80 | — | — | |
| Qualcomm Inc. | 1.66 | 1.33 | 1.13 | 1.21 | — | |
| Texas Instruments Inc. | 1.12 | 1.12 | 1.19 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
1 Invested capital. See details »
2 2021 Calculation
TO = Revenue ÷ Invested capital
= 11,063 ÷ 16,745 = 0.66
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. | NXP Semiconductors N.V. TO improved from 2019 to 2020 and from 2020 to 2021. |
Effective Cash Tax Rate (CTR)
NXP Semiconductors N.V., CTR calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 2,126) | 40) | 303) | 2,196) | 1,630) | |
| Add: Cash operating taxes2 | 384) | 355) | 275) | 445) | 386) | |
| Net operating profit before taxes (NOPBT) | 2,511) | 395) | 578) | 2,640) | 2,015) | |
| Tax Rate | ||||||
| CTR3 | 15.31% | 89.86% | 47.56% | 16.84% | 19.15% | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Advanced Micro Devices Inc. | 5.73% | 1.76% | 12.31% | — | — | |
| Analog Devices Inc. | 25.70% | 16.31% | 14.82% | 50.33% | — | |
| Applied Materials Inc. | 12.33% | 12.01% | 16.10% | 25.07% | — | |
| Broadcom Inc. | 16.44% | 22.63% | 15.10% | 11.38% | — | |
| Intel Corp. | 12.07% | 9.78% | 10.35% | — | — | |
| KLA Corp. | 14.30% | 14.62% | 10.70% | 35.06% | — | |
| Lam Research Corp. | 12.57% | 13.09% | 14.26% | 24.00% | — | |
| Micron Technology Inc. | 6.96% | 6.13% | 4.94% | 3.36% | — | |
| NVIDIA Corp. | 8.10% | 4.59% | 1.47% | — | — | |
| ON Semiconductor Corp. | 6.53% | 25.63% | 19.02% | — | — | |
| Qualcomm Inc. | 14.84% | 14.19% | 16.37% | 1,215.96% | — | |
| Texas Instruments Inc. | 12.93% | 9.63% | 11.38% | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2021 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 384 ÷ 2,511 = 15.31%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | NXP Semiconductors N.V. CTR increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |