End Game
Variable
Number of firms
After-tax Operating Margin
Sales/Capital
Return on Capital
To break down return on capital into margin and sales turnover portions. After-tax ROC = after-tax
Explanation
Number of firms in the industry grouping.
Aggregate operating income, adjusted for effective taxes, divided by
aggregate revenues, across firms in the group
Aggregate revenues divided by aggregate invested capital, across firms in
the group. (Invested Capital = Book Debt + Book Equity - Cash)
Aggregate operating income, adjusted for effective taxes, divided by
aggregate invested capital, across firms in the groups.
turnover portions. After-tax ROC = after-tax Operating Margin * Sales/ Invested Capital
Why?
Law of large numbers?
Measure after-tax operating profitability of business
Measure turnover ratio or efficiency of investment in delivering revenues
Measure of after-tax returns generated on invested capital. Can be compared to cost of capital to make
judgment on whether the company is earning excess returns.
Date updated: 5-Jan-24
Created by: Aswath Damodaran, adamodar@stern.nyu.edu
What is this data? After-tax operating income and Free Cash Flow to Firm
Home Page: http://www.damodaran.com
Data website: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/data.html
Companies in each industry: https://pages.stern.nyu.edu/~adamodar/pc/datasets/indname.xls
Variable definitions: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/varia
Industry name Number of firms After-tax Operating Margin
Advertising 57 9.60%
Aerospace/Defense 70 8.15%
Air Transport 25 6.15%
Apparel 38 8.63%
Auto & Truck 34 4.95%
Auto Parts 39 5.07%
Bank (Money Center) 15 0.07%
Banks (Regional) 625 -0.15%
Beverage (Alcoholic) 19 18.59%
Beverage (Soft) 29 18.10%
Broadcasting 22 10.81%
Brokerage & Investment Banking 27 0.47%
Building Materials 44 11.04%
Business & Consumer Services 162 10.09%
Cable TV 10 14.56%
Chemical (Basic) 32 7.30%
Chemical (Diversified) 4 1.23%
Chemical (Specialty) 68 11.67%
Coal & Related Energy 18 20.01%
Computer Services 72 6.74%
Computers/Peripherals 36 19.66%
Construction Supplies 11 16.10%
Diversified 23 21.86%
Drugs (Biotechnology) 572 3.82%
Drugs (Pharmaceutical) 245 20.80%
Education 31 4.60%
Electrical Equipment 103 9.05%
Electronics (Consumer & Office) 13 0.57%
Electronics (General) 129 9.01%
Engineering/Construction 77 9.09%
Entertainment 98 6.83%
Environmental & Waste Services 57 13.07%
Farming/Agriculture 42 9.79%
Financial Svcs. (Non-bank & Insurance) 192 14.35%
Food Processing 93 9.71%
Food Wholesalers 14 1.87%
Furn/Home Furnishings 31 5.26%
Green & Renewable Energy 17 20.82%
Healthcare Products 230 13.19%
Healthcare Support Services 119 3.55%
Heathcare Information and Technology 128 13.71%
Homebuilding 32 13.50%
Hospitals/Healthcare Facilities 32 10.76%
Hotel/Gaming 68 12.38%
Household Products 19 16.61%
Information Services 18 10.41%
Insurance (General) 21 13.18%
Insurance (Life) 23 0.12%
Insurance (Prop/Cas.) 50 6.56%
Investments & Asset Management 334 13.00%
Machinery 103 13.31%
Metals & Mining 68 19.17%
Office Equipment & Services 17 6.24%
Oil/Gas (Integrated) 4 12.44%
Oil/Gas (Production and Exploration) 166 35.57%
Oil/Gas Distribution 24 34.68%
Oilfield Svcs/Equip. 100 7.89%
Packaging & Container 11 8.01%
Paper/Forest Products 7 8.84%
Power 50 14.06%
Precious Metals 61 9.29%
Publishing & Newspapers 13 6.50%
R.E.I.T. 181 19.27%
Real Estate (Development) 17 11.00%
Real Estate (General/Diversified) 11 14.26%
Real Estate (Operations & Services) 60 0.05%
Recreation 55 7.43%
Reinsurance 1 7.44%
Restaurant/Dining 64 12.07%
Retail (Automotive) 30 4.94%
Retail (Building Supply) 16 10.83%
Retail (Distributors) 62 10.25%
Retail (General) 26 4.10%
Retail (Grocery and Food) 14 2.31%
Retail (REITs) 28 34.12%
Retail (Special Lines) 105 4.34%
Rubber& Tires 3 2.16%
Semiconductor 63 19.58%
Semiconductor Equip 30 22.05%
Shipbuilding & Marine 8 11.14%
Shoe 13 10.80%
Software (Entertainment) 84 26.81%
Software (Internet) 35 -0.76%
Software (System & Application) 351 25.23%
Steel 29 10.24%
Telecom (Wireless) 13 13.52%
Telecom. Equipment 66 19.48%
Telecom. Services 42 19.60%
Tobacco 16 36.92%
Transportation 110 7.99%
Transportation (Railroads) 4 28.91%
Trucking 22 6.92%
Utility (General) 14 18.60%
Utility (Water) 13 27.28%
Total Market 6481 10.68%
Total Market (without financials) 5194 11.39%
n.nyu.edu
Cash Flow to Firm US companies
dar/New_Home_Page/data.html
dar/pc/datasets/indname.xls
dar/New_Home_Page/datafile/variable.htm
Sales/ Invested Capital (LTM) Return on Capital
3.28 31.52%
1.98 16.17%
1.78 10.92%
1.77 15.29%
1.05 5.19%
2.00 10.16%
0.27 0.02%
0.37 -0.05%
0.90 16.67%
1.69 30.65%
1.12 12.06%
0.28 0.13%
2.29 25.27%
2.72 27.45%
0.78 11.31%
1.62 11.81%
1.28 1.57%
1.16 13.51%
1.47 29.50%
3.59 24.17%
1.92 37.80%
1.05 16.92%
0.93 20.40%
0.41 1.56%
0.64 13.38%
1.29 5.93%
1.47 13.27%
1.67 0.95%
1.68 15.11%
2.04 18.53%
1.11 7.56%
2.29 29.94%
1.83 17.93%
0.07 0.96%
1.71 16.63%
8.02 14.96%
1.96 10.31%
0.20 4.15%
0.99 13.08%
12.88 45.74%
1.04 14.28%
1.55 20.91%
1.87 20.16%
0.81 9.99%
2.09 34.64%
2.19 22.74%
1.19 15.65%
0.94 0.11%
1.69 11.12%
0.47 6.16%
1.87 24.91%
1.25 24.03%
2.07 12.93%
1.37 17.04%
0.80 28.41%
0.59 20.60%
3.55 28.02%
1.81 14.47%
2.14 18.90%
0.41 5.78%
0.51 4.69%
1.81 11.74%
0.14 2.60%
0.27 2.93%
0.37 5.31%
1.45 0.07%
1.28 9.54%
4.05 30.12%
1.62 19.56%
2.67 13.20%
3.64 39.43%
1.82 18.61%
2.41 9.89%
4.76 10.99%
0.13 4.46%
3.11 13.50%
1.45 3.12%
0.58 11.37%
1.16 25.68%
0.83 9.24%
2.23 24.04%
0.74 19.94%
0.64 -0.48%
0.92 23.22%
2.17 22.18%
0.48 6.55%
1.45 28.18%
0.60 11.80%
2.18 80.36%
2.01 16.09%
0.49 14.26%
1.84 12.75%
0.35 6.47%
0.25 6.80%
0.79 8.41%
1.29 14.70%
