Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Qualcomm Inc. (NASDAQ:QCOM)

Return on Capital (ROC)

Advanced level


Return on Invested Capital (ROIC)

Qualcomm Inc., ROIC calculation, comparison to benchmarks

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%
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% 109.09%
Applied Materials Inc. 28.91% 29.78% 31.69% 20.54% 11.10% 11.68%
Broadcom Inc. 5.00% 10.03% 3.52% -1.55% 15.58% 3.98%
Cisco Systems Inc. 18.12% 2.85% 19.68% 23.64% 22.15%
Intel Corp. 26.74% 23.84% 10.03% 16.51% 17.27%
Lam Research Corp. 20.10% 25.72% 31.56% 10.67% 15.45%
Micron Technology Inc. 17.16% 39.70% 18.99% -0.03% 19.13% 21.05%
NVIDIA Corp. 79.86% 41.40% 40.74% 31.19% 28.18%
Texas Instruments Inc. 43.15% 44.66% 32.30% 28.86% 24.07%

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%

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. Qualcomm Inc.’s ROIC deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Decomposition of ROIC

Qualcomm Inc., decomposition of ROIC

Microsoft Excel LibreOffice Calc
ROIC = OPM1 × TO2 × 1 – CTR3
Sep 29, 2019 27.80% = 29.51% × 1.13 × 83.46%
Sep 30, 2018 -16.06% = 1.66% × 1.20 × -805.86%
Sep 24, 2017 1.94% = 9.49% × 0.45 × 45.58%
Sep 25, 2016 27.09% = 26.07% × 1.30 × 79.83%
Sep 27, 2015 19.77% = 20.11% × 1.21 × 80.99%
Sep 28, 2014 37.44% = 26.91% × 1.58 × 88.24%

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 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)

Qualcomm Inc., OPM calculation, comparison to benchmarks

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 
Add: Cash operating taxes2 1,165  3,364  1,132  1,228  940  825 
Net operating profit before taxes (NOPBT) 7,046  371  2,080  6,090  4,947  7,015 
 
Revenues 24,273  22,732  22,291  23,554  25,281  26,487 
Add: Increase (decrease) in unearned revenues (395) (385) (381) (193) (673) (415)
Adjusted revenues 23,878  22,347  21,910  23,361  24,608  26,072 
Profitability Ratio
OPM3 29.51% 1.66% 9.49% 26.07% 20.11% 26.91%
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% 29.62%
Applied Materials Inc. 23.89% 26.89% 29.01% 22.15% 17.40% 16.70%
Broadcom Inc. 15.65% 24.22% 12.14% -2.93% 24.07% 11.51%
Cisco Systems Inc. 25.46% 26.21% 27.94% 27.26% 23.84%
Intel Corp. 33.40% 30.95% 26.66% 21.44% 25.84%
Lam Research Corp. 20.46% 29.43% 27.76% 18.88% 18.03%
Micron Technology Inc. 29.90% 47.86% 28.39% 1.37% 21.09% 21.64%
NVIDIA Corp. 33.09% 32.77% 24.50% 14.96% 15.98%
Texas Instruments Inc. 40.81% 43.25% 41.06% 37.64% 32.94%

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 Cash operating taxes. See details »

3 2019 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenues
= 100 × 7,046 ÷ 23,878 = 29.51%

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. Qualcomm Inc.’s OPM deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Turnover of Capital (TO)

Qualcomm Inc., TO calculation, comparison to benchmarks

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)
Revenues 24,273  22,732  22,291  23,554  25,281  26,487 
Add: Increase (decrease) in unearned revenues (395) (385) (381) (193) (673) (415)
Adjusted revenues 23,878  22,347  21,910  23,361  24,608  26,072 
 
Invested capital1 21,153  18,629  48,890  17,943  20,265  16,532 
Efficiency Ratio
TO2 1.13 1.20 0.45 1.30 1.21 1.58
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 4.62
Applied Materials Inc. 1.44 1.52 1.20 1.09 0.83 0.97
Broadcom Inc. 0.38 0.47 0.35 0.29 0.81 0.49
Cisco Systems Inc. 0.95 1.00 0.87 1.04 1.13
Intel Corp. 0.89 0.94 0.94 0.92 0.91
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 1.02
NVIDIA Corp. 2.45 1.50 1.71 2.08 1.89
Texas Instruments Inc. 1.19 1.26 1.26 1.11 1.06

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 Invested capital. See details »

2 2019 Calculation
TO = Adjusted revenues ÷ Invested capital
= 23,878 ÷ 21,153 = 1.13

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. Qualcomm Inc.’s TO improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Effective Cash Tax Rate (CTR)

Qualcomm Inc., CTR calculation, comparison to benchmarks

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 
Add: Cash operating taxes2 1,165  3,364  1,132  1,228  940  825 
Net operating profit before taxes (NOPBT) 7,046  371  2,080  6,090  4,947  7,015 
Tax Rate
CTR3 16.54% 905.86% 54.42% 20.17% 19.01% 11.76%
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% 20.30%
Applied Materials Inc. 16.09% 27.18% 8.67% 14.87% 23.00% 27.58%
Broadcom Inc. 15.10% 11.38% 16.03% 19.97% 29.19%
Cisco Systems Inc. 24.92% 89.18% 19.15% 16.48% 17.77%
Intel Corp. 10.33% 18.16% 59.84% 16.68% 26.25%
Lam Research Corp. 14.26% 24.00% 1.52% 11.77% 10.13%
Micron Technology Inc. 4.94% 3.36% 6.08% 104.15% 6.26% 4.73%
NVIDIA Corp. 1.47% 15.99% 2.78% -0.02% 6.81%
Texas Instruments Inc. 11.38% 18.14% 37.69% 31.13% 30.79%

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 Cash operating taxes. See details »

3 2019 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 1,165 ÷ 7,046 = 16.54%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Qualcomm Inc.’s CTR increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.