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

Newmont Corp. (NYSE:NEM)

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)

Newmont Corp., ROIC calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,630  3,486  592  882  (252)
Invested capital2 29,461  28,943  13,941  13,887  13,932 
Performance Ratio
ROIC3 8.93% 12.04% 4.24% 6.35% -1.81%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21).

1 NOPAT. See details »

2 Invested capital. See details »

3 2020 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,630 ÷ 29,461 = 8.93%

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Newmont Corp.’s ROIC improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Decomposition of ROIC

Newmont Corp., decomposition of ROIC

Microsoft Excel LibreOffice Calc
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2020 8.93% = 31.44% × 0.39 × 72.74%
Dec 31, 2019 12.04% = 41.44% × 0.34 × 86.37%
Dec 31, 2018 4.24% = 11.86% × 0.52 × 68.77%
Dec 31, 2017 6.35% = 17.49% × 0.53 × 68.63%
Dec 31, 2016 -1.81% = -0.99% × 0.48 × 100.00%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21).

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 decrease in return on invested capital (ROIC) over 2020 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Newmont Corp., OPM calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,630  3,486  592  882  (252)
Add: Cash operating taxes2 985  550  269  403  185 
Net operating profit before taxes (NOPBT) 3,615  4,036  860  1,285  (66)
 
Sales 11,497  9,740  7,253  7,348  6,711 
Profitability Ratio
OPM3 31.44% 41.44% 11.86% 17.49% -0.99%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
OPM = 100 × NOPBT ÷ Sales
= 100 × 3,615 ÷ 11,497 = 31.44%

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Newmont Corp.’s OPM improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Turnover of Capital (TO)

Newmont Corp., TO calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Sales 11,497  9,740  7,253  7,348  6,711 
Invested capital1 29,461  28,943  13,941  13,887  13,932 
Efficiency Ratio
TO2 0.39 0.34 0.52 0.53 0.48

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21).

1 Invested capital. See details »

2 2020 Calculation
TO = Sales ÷ Invested capital
= 11,497 ÷ 29,461 = 0.39

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. Newmont Corp.’s TO deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Effective Cash Tax Rate (CTR)

Newmont Corp., CTR calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,630  3,486  592  882  (252)
Add: Cash operating taxes2 985  550  269  403  185 
Net operating profit before taxes (NOPBT) 3,615  4,036  860  1,285  (66)
Tax Rate
CTR3 27.26% 13.63% 31.23% 31.37%

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 985 ÷ 3,615 = 27.26%

Tax rate Description The company
CTR Effective cash tax rate on operating income. Newmont Corp.’s CTR decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.