Return on Capital (ROC)
Advanced level
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, comparison to benchmarks
| 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
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
| 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
| 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
| 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. |