The Motley Fool

SEPTEMBER 9, 2023

Best-in-class profitability Home to over 100 brands sold in 80 countries, Hershey has a proven track record of generating healthy returns on invested capital as it expanded across the United States in its younger years and globally more recently.

Return On Investment 246

Return On Investment Capital Debt Shareholders 246

The Motley Fool

DECEMBER 24, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC). To be exempt from paying federal taxes, BDCs must return at least 90% of their income to shareholders in the form of dividends. Can Ares Capital sustain its dividend at such an ultra-high level? I think so.

Capital 239

Capital Business Development Companies Taxes Shareholders 239

The Motley Fool

FEBRUARY 5, 2024

Diageo is quickly shifting its portfolio to capitalize on the growth levers listed above, including adding 11 net new super premium and premium brands through mergers and acquisitions (M&A) while disposing of 49 standard and value labels.

Mergers and Acquisitions 244

Mergers and Acquisitions Return On Investment Portfolios Capital 244

The Motley Fool

NOVEMBER 12, 2023

billion through 2026 on new RNG facilities, Waste Management aims to generate an additional $450 million in free cash flow (FCF) annually once its capital expenditures (capex) start paying off. WM Return on Invested Capital data by YCharts Measuring the company's profitability to its debt and equity, Waste Management's 10.5%

Enterprise Values 244

Enterprise Values Earnings Before Interest Amortization Depreciation 244

The Motley Fool

MARCH 25, 2024

Amazon has a track record of growth in return on invested capital (ROIC) over time, showing the company has made wise investment decisions. These efforts also should lift earnings over the long haul. So, there's reason to believe this trend could continue.

Prospects 231

Prospects Return On Investment Capital Returns 231

The Motley Fool

APRIL 23, 2024

Oil and gas is capital intensive, and so is investing in AI. Exxon dedicates tens of billions yearly on capital expenditures to expand production and boost refinery outputs. Meanwhile, Nvidia must develop new chips that it won't see a return on for years. NVDA net total long-term debt (quarterly) data by YCharts.

Debt 242

Debt Capital Shareholders Portfolios 242

The Motley Fool

NOVEMBER 27, 2023

ITW Return on Invested Capital data by YCharts. The company has prudently acquired companies over the years (more than two dozen acquisitions), steadily increasing its return on invested capital (ROIC). TTM = trailing 12 months. Strong management sets the company apart from many of its peers.

Conglomerates 246

Conglomerates Earnings Before Interest Amortization Depreciation 246

The Motley Fool

OCTOBER 8, 2023

The oil industry is extremely capital-intensive. Producers must stay ahead of this decline by reinvesting capital into new wells and related infrastructure. Some producers earn higher returns on their reinvested capital dollars than rivals. That's evident in ExxonMobil's long-term investment strategy.

Shareholders 245

Shareholders Capital Debt Taxes 245

The Motley Fool

FEBRUARY 12, 2024

ET on Monday after Northland Capital Markets analyst Nehal Chokshi raised his price target on Supermicro stock by nearly 50%. Shares of Super Micro Computer (NASDAQ: SMCI) , a provider of high-performance server solutions for the artificial intelligence (AI) industry , were up by around 5% as of 1:30 p.m. Is Supermicro stock a buy?

Capital 245

Capital Return On Investment Returns Investors 245

The Motley Fool

NOVEMBER 26, 2023

We can measure Toro's ability to successfully integrate its acquisitions by using return on invested capital (ROIC) as our measuring stick. Comparing a company's profitability to its debt and equity, ROIC highlights how efficiently a company deploys its capital -- or, in Toro's case, how well it makes its acquisitions.

Capital 244

Capital Return On Investment Debt Returns 244

The Motley Fool

DECEMBER 26, 2023

That's because whatever a stock may do in the near term or whatever its current valuation multiple, Munger taught us that over a long time period, stocks tend to return close to the return on capital of the underlying business. After all, Microsoft was the largest company in the world in the year 2000. lots of room to grow.

Capital 246

Capital Return On Investment Returns Shareholders 246

The Motley Fool

MAY 11, 2024

Last year, Enterprise picked up its growth capital expenditures to $3.5 Enterprise has averaged about a 13% return on invested capital over the past five years. Prior to the COVID-19 pandemic in 2019, the company spent $4.3 billion on growth projects. That was down to only $1.4 billion in 2022. billion and $3.75

Depreciation 240

Depreciation Enterprise Values Leveraging Earnings Before Interest 240

The Motley Fool

DECEMBER 23, 2023

Best-in-class profitability and incredible returns However, this leadership position means nothing if it doesn't lead to profits and free cash flow (FCF). With a return on invested capital (ROIC) of 28% and an expected $1 billion in FCF in 2023, Bombardier is also a leader on the profitability side of things.

Return On Investment 245

Return On Investment Capital Returns Debt 245

The Motley Fool

JANUARY 13, 2024

Meanwhile, new artificial intelligence (AI) technologies have the power to improve targeting and return on investment for advertisers. The company offers a cloud-based, self-serve platform for ad agencies and brands to manage digital ad campaigns and maximize their return on investment.

Leveraging 244

Leveraging Return On Investment Capital Returns 244

The Motley Fool

AUGUST 6, 2023

In investing circles, Bill Ackman is a prominent figure. He's the founder of hedge fund Pershing Square Capital Management. The winner is: Alphabet That's right, the only AI-related stock held in Pershing Square Capital's ultra-concentrated portfolio is Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Image source: Getty Images.

Securities and Exchange Commission (SEC) 246

Securities and Exchange Commission (SEC) Stakes Investing Hedge Funds 246

The Motley Fool

MAY 18, 2024

Since its initial public offering in 1981, Home Depot (NYSE: HD) has done a fantastic job of growing shareholders' capital. Because these customers spend much more than DIYers, they have helped Home Depot usually report a higher operating margin and return on invested capital (ROIC) historically.

Initial Public Offering 130

Initial Public Offering Shareholders Capital Return On Investment 130

The Motley Fool

JANUARY 24, 2024

How Coca-Cola is succeeding Coca-Cola's revenue resurgence is thanks to a strategy focused on improving the company's return on invested capital. This strategy enables the company to move away from this capital-intensive, low-margin business by selling the operations to local bottling partners.

Return On Investment 130

Return On Investment Capital Accounting Portfolios 130

Private Equity Insights

DECEMBER 15, 2023

Blackstone Real Estate Debt Strategies and Blackstone Real Estate Income Trust partnered with Miami, Florida-based Rialto Capital and the Canada Pension Plan Investment Board to make the successful $1.2bn bid for the 20% interest in a joint venture set up by the FDIC to hold the failed bank’s $16.8bn in commercial real estate debt.

Stakes 225

Stakes Debt Bidding Law Firms 225

The Motley Fool

JUNE 21, 2023

Over time, stocks with growing dividends and high returns on invested capital (ROICs) have tended to outperform their peers. By highlighting these qualities -- plus a payout ratio below 50% -- investors can create a stocked pond to fish in and perhaps find the next investing lunker.

Accounting 241

Accounting Return On Investment Capital Funds 241

The Motley Fool

JULY 4, 2023

Both businesses are capital-intensive. billion into capital improvements. wireless industry, Verizon and T-Mobile , and a combination of high capital intensity and network effects makes it unlikely another competitor will emerge. Cash return on invested capital, or CROIC, is about 6.5%

Debt 245

Debt Capital Return On Investment Stock Market 245

The Motley Fool

FEBRUARY 7, 2024

So, to examine this, investors can look at what each company is generating as a return on invested capital (ROIC). LOW Return on Invested Capital data by YCharts A high ROIC is excellent, but what a company pays for its capital, called the weighted average cost of capital, or WAAC , is just as important.

Earnings Before Interest 130

Earnings Before Interest Amortization Depreciation Debt 130

The Motley Fool

DECEMBER 19, 2023

Building out an automotive manufacturing business is extremely capital intensive and requires massive scale in order to make the unit economics work. It is capital-intensive, has a ton of competitors, and is a classic candidate for following capital cycle theory, which has a whole book dedicated to it.

Initial Public Offering 245

Initial Public Offering Leveraging Capital Returns 245

The Motley Fool

APRIL 15, 2024

The LP has delivered an average return on invested capital (ROIC) of 12% over the last 10 years. Most are NGL-related, including new plants in the Delaware and Midland Basins and the Bahia pipeline. Investors can rest assured Enterprise Products Partners deploys its cash wisely.

Debt 246

Debt Assets Taxes Return On Investment 246

The Motley Fool

JANUARY 27, 2024

Return on invested capital also has been on the rise over the past year. AMZN Return on Invested Capital data by YCharts These moves should benefit the company in better times, too.

Debt 241

Debt Return On Investment Capital Shareholders 241

The Motley Fool

JANUARY 14, 2024

He also places a high value on companies that generate profits that can be reinvested in the business at high rates of return. Apple certainly passes the latter test, earning an extraordinary return on invested capital of 56%. Buffett admires Apple's ability to make products that people can't live without.

Shareholders 246

Shareholders Stakes Financial Institutions Debt 246

The Motley Fool

JANUARY 3, 2024

NVO PE Ratio (Forward) data by YCharts Beyond valuation, Novo Nordisk generates a much higher return on invested capital (ROIC) than Eli Lilly. A research analyst from BMO Capital Markets estimates the market for GLP-1 drugs could reach $100 billion by 2035. This metric helps gauge how effectively a business makes money.

Shareholders 246

Shareholders Capital Returns Return On Investment 246

The Motley Fool

MAY 9, 2024

Being able to accurately forecast its operating cash flow is vitally important when it comes to outlaying capital for bolt-on acquisitions and new projects. Multiple years of reduced capital spending by major energy companies during the pandemic has constrained the global supply of oil. during the pandemic.

Exchange-Traded Funds 244

Exchange-Traded Funds Earnings Before Interest Amortization Depreciation 244

The Motley Fool

DECEMBER 10, 2023

First, this company's capital light structure means it doesn't have to invest heavily to grow its business. For example, Etsy sellers run their own shops and take care of stocking and shipping their wares -- so Etsy doesn't have to invest in storage and transport. But one of the biggest Etsy deals may actually be Etsy stock.

Capital 246

Capital Return On Investment Returns Companies 246

The Motley Fool

APRIL 7, 2024

Since the spinoff, it has achieved its commitments stated at that time, which include industry-leading cash generation and debt reduction, as well as disciplined capital allocation, and return on invested capital (ROIC) that's sustainably higher than 13%.

Debt 246

Debt Capital Returns Return On Investment 246

The Motley Fool

FEBRUARY 7, 2024

Comparing a company's weighted average cost of capital (WAAC) to its return on invested capital (ROIC) shows how well it creates value for investors. AVGO Return on Invested Capital data by YCharts This is something to watch, but it helps explain how the stock has done so well.

Return On Investment 130

Return On Investment Capital Shareholders Returns 130

The Motley Fool

FEBRUARY 22, 2024

Finally, optimizing capital allocation and enhancing its operating income would be the keys to exceed its 2019 record of 10.5% in return on invested capital. By 2025 it was hoping to take out its pre-pandemic high of $9.54 in adjusted earnings per share, also set back in 2019.

Earnings Before Interest 246

Earnings Before Interest Amortization Depreciation Taxes 246

The Motley Fool

JANUARY 27, 2024

Importantly, Nvidia's investments are bearing fruit, with return on invested capital soaring in recent times. NVDA Return on Invested Capital data by YCharts. In the most recent quarter, Nvidia's R&D spending increased 18% to more than $2.2

Return On Investment 246

Return On Investment Capital Returns Companies 246

The Motley Fool

MAY 1, 2024

The company is among the leaders in the payroll and human capital management software industries. Its return on invested capital (ROIC) is over 40%, which is exceptionally high, and growing. High ROIC indicates a business that is efficiently deploying its capital to produce profits.

Shareholders 130

Shareholders Capital Portfolios Returns 130

The Motley Fool

JANUARY 21, 2024

Operating income of $10 billion well surpassed operating expenses, another positive point -- and at the same time, increasing research and development spending shows Nvidia is investing to stay ahead of the crowd.

Return On Investment 240

Return On Investment Prospects Capital Returns 240

The Motley Fool

JANUARY 15, 2024

O'Reilly's best-in-class profitability O'Reilly boasts an incredible 71% return on invested capital (ROIC) , the second-highest among its peers in the Nasdaq-100. A high ROIC like O'Reilly's is vital to investors as it is often a hallmark of long-term outperformance.

Initial Public Offering 130

Initial Public Offering Shareholders Return On Investment Capital 130

The Motley Fool

JULY 2, 2023

A stellar return on invested capital Leveraging the power of its leadership position in the pool supplies and pool-related products market, Pool Corp. However, despite these short-term struggles, history may suggest that buying Pool right now could be a good long-term decision. Let's explore three key reasons why.

Shareholders 239

Shareholders Leveraging Return On Investment Debt 239

The Motley Fool

JULY 3, 2023

The airline expects to earn more than $7 per share in 2024, generating free cash flow of more than $4 billion and a return on invested capital in the mid-teens. CEO Ed Bastian sounded a cautious tone during the presentation, saying paying down debt will continue to be Delta's priority use for surplus capital.

Debt 246

Debt Capital Return On Investment Returns 246