Stock Analysis on Net

Corning Inc. (NYSE:GLW)

This company has been moved to the archive! The financial data has not been updated since May 2, 2024.

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Corning Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 817 1,544 2,088 1,761 968
Invested capital2 20,411 19,666 19,716 21,233 18,872
Performance Ratio
ROIC3 4.00% 7.85% 10.59% 8.29% 5.13%
Benchmarks
ROIC, Competitors4
Apple Inc. 156.53% 217.85% 214.07% 161.85% 105.51%
Arista Networks Inc. 43.29% 38.75% 53.73% 36.06% 41.53%
Cisco Systems Inc. 21.42% 21.11% 20.34% 24.12% 18.12%
Super Micro Computer Inc. 25.75% 14.13% 8.04% 5.68% 10.74%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 817 ÷ 20,411 = 4.00%

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. Corning Inc. ROIC deteriorated from 2021 to 2022 and from 2022 to 2023.

Decomposition of ROIC

Corning Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2023 4.00% = 8.98% × 0.62 × 72.31%
Dec 31, 2022 7.85% = 14.61% × 0.72 × 74.69%
Dec 31, 2021 10.59% = 18.83% × 0.71 × 79.38%
Dec 31, 2020 8.29% = 15.84% × 0.58 × 90.18%
Dec 31, 2019 5.13% = 12.71% × 0.61 × 66.18%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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 2023 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Corning Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 817 1,544 2,088 1,761 968
Add: Cash operating taxes2 313 523 542 192 494
Net operating profit before taxes (NOPBT) 1,130 2,067 2,630 1,952 1,462
 
Net sales 12,588 14,189 14,082 11,303 11,503
Add: Increase (decrease) in deferred revenue (9) (43) (112) 1,024
Adjusted net sales 12,579 14,146 13,970 12,327 11,503
Profitability Ratio
OPM3 8.98% 14.61% 18.83% 15.84% 12.71%
Benchmarks
OPM, Competitors4
Apple Inc. 29.83% 30.44% 30.11% 24.73% 24.69%
Arista Networks Inc. 43.42% 37.18% 37.40% 32.62% 33.40%
Cisco Systems Inc. 29.22% 29.29% 28.52% 30.47% 25.46%
Super Micro Computer Inc. 11.58% 7.18% 3.35% 2.63% 4.41%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Adjusted net sales
= 100 × 1,130 ÷ 12,579 = 8.98%

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. Corning Inc. OPM deteriorated from 2021 to 2022 and from 2022 to 2023.

Turnover of Capital (TO)

Corning Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net sales 12,588 14,189 14,082 11,303 11,503
Add: Increase (decrease) in deferred revenue (9) (43) (112) 1,024
Adjusted net sales 12,579 14,146 13,970 12,327 11,503
 
Invested capital1 20,411 19,666 19,716 21,233 18,872
Efficiency Ratio
TO2 0.62 0.72 0.71 0.58 0.61
Benchmarks
TO, Competitors3
Apple Inc. 6.36 8.46 8.61 7.63 5.12
Arista Networks Inc. 1.32 1.45 1.70 1.28 1.36
Cisco Systems Inc. 1.01 0.89 0.90 0.96 0.95
Super Micro Computer Inc. 2.95 2.35 2.77 2.69 3.09

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Invested capital. See details »

2 2023 Calculation
TO = Adjusted net sales ÷ Invested capital
= 12,579 ÷ 20,411 = 0.62

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. Corning Inc. TO improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Effective Cash Tax Rate (CTR)

Corning Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 817 1,544 2,088 1,761 968
Add: Cash operating taxes2 313 523 542 192 494
Net operating profit before taxes (NOPBT) 1,130 2,067 2,630 1,952 1,462
Tax Rate
CTR3 27.69% 25.31% 20.62% 9.82% 33.82%
Benchmarks
CTR, Competitors4
Apple Inc. 17.45% 15.42% 17.39% 14.22% 16.57%
Arista Networks Inc. 24.58% 28.06% 15.61% 13.60% 8.55%
Cisco Systems Inc. 27.06% 19.15% 20.48% 17.40% 24.92%
Super Micro Computer Inc. 24.68% 16.27% 13.44% 19.78% 21.16%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 313 ÷ 1,130 = 27.69%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Corning Inc. CTR increased from 2021 to 2022 and from 2022 to 2023.