Microsoft Excel LibreOffice Calc

Qualcomm Inc. (QCOM)

Return on Capital (ROC)

High level of difficulty

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)

Qualcomm Inc., ROIC calculation

Microsoft Excel LibreOffice Calc
Sep 29, 2019 Sep 30, 2018 Sep 24, 2017 Sep 25, 2016 Sep 27, 2015 Sep 28, 2014
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 5,881  (2,992) 948  4,862  4,007  6,190 
Invested capital2 21,153  18,629  48,890  17,943  20,265  16,532 
Performance Ratio
ROIC3 27.80% -16.06% 1.94% 27.09% 19.77% 37.44%

Based on: 10-K (filing date: 2019-11-06), 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02), 10-K (filing date: 2015-11-04), 10-K (filing date: 2014-11-05).

1 NOPAT. See details »

2 Invested capital. See details »

3 2019 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 5,881 ÷ 21,153 = 27.80%

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Qualcomm Inc.’s ROIC deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.