Basis: Trailing twelve months (TTM), to the latest fiscal quarter end. Source: stored company filings and market data; unavailable inputs remain N/A.
Is the return on invested capital (ROIC) high or low?
The return on invested capital (ROIC) of 7.33% is 18% above its 3-year average of 6.22%, around the middle of its 3-year range (0.40%–10.33%).
As of the fiscal period ended Tuesday, June 30, 2026. 13.35% below its 12-month average of 8.46%.
Trailing-twelve-month return on invested capital at each fiscal quarter end; no daily interpolation.
RETURN ON INVESTED CAPITAL (ROIC)
7.33%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
8.46%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
5.96%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
N/A
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
N/A
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
N/A
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
N/A
CURRENT VS TTM AVG
-13.35%
CURRENT VS 3Y AVG
+22.93%
CURRENT VS 5Y AVG
N/A
CURRENT VS 10Y AVG
N/A
CURRENT VS 15Y AVG
N/A
CURRENT VS 20Y AVG
N/A
SECTOR MEDIAN · TECHNOLOGY
8.17%
median of 193 covered companies
CURRENT VS SECTOR MEDIAN
-10.28%
vs the sector median at left
Arm Holdings plc American Depositary Shares
Market Cap
$269.23B
Return on Invested Capital (ROIC)
7.33%
TTM Avg
8.46%
3Y Avg
5.96%
5Y Avg
N/A
Market Cap
$271.61B
Return on Invested Capital (ROIC)
1.03%
TTM Avg
3.35%
3Y Avg
3.82%
5Y Avg
1.38%
Market Cap
$257.68B
Return on Invested Capital (ROIC)
64.29%
TTM Avg
64.29%
3Y Avg
16.19%
5Y Avg
7.93%
Market Cap
$250.65B
Return on Invested Capital (ROIC)
13.02%
TTM Avg
8.86%
3Y Avg
7.92%
5Y Avg
8.43%
Market Cap
$244.00B
Return on Invested Capital (ROIC)
21.80%
TTM Avg
22.69%
3Y Avg
23.35%
5Y Avg
21.10%
Market Cap
$242.45B
Return on Invested Capital (ROIC)
35.75%
TTM Avg
36.17%
3Y Avg
33.56%
5Y Avg
32.79%
Market Cap
$236.02B
Return on Invested Capital (ROIC)
18.81%
TTM Avg
15.57%
3Y Avg
22.12%
5Y Avg
25.71%
Market Cap
$221.30B
Return on Invested Capital (ROIC)
10.12%
TTM Avg
9.80%
3Y Avg
8.91%
5Y Avg
7.63%
Market Cap
$216.99B
Return on Invested Capital (ROIC)
-1.57%
TTM Avg
-2.75%
3Y Avg
-3.01%
5Y Avg
-3.90%
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Arm Holdings plc American Depositary Shares (ARM) | $269.23B | 7.33% | 8.46% | 5.96% | N/A |
| Palo Alto Networks, Inc. (PANW)vs › | $271.61B | 1.03% | 3.35% | 3.82% | 1.38% |
| Sandisk Corporation (SNDK)vs › | $257.68B | 64.29% | 64.29% | 16.19% | 7.93% |
| SAP SE (SAP)vs › | $250.65B | 13.02% | 8.86% | 7.92% | 8.43% |
| Arista Networks, Inc. (ANET)vs › | $244.00B | 21.80% | 22.69% | 23.35% | 21.10% |
| KLA Corporation (KLAC)vs › | $242.45B | 35.75% | 36.17% | 33.56% | 32.79% |
| Texas Instruments Incorporated (TXN)vs › | $236.02B | 18.81% | 15.57% | 22.12% | 25.71% |
| International Business Machines Corporation (IBM)vs › | $221.30B | 10.12% | 9.80% | 8.91% | 7.63% |
| CrowdStrike Holdings, Inc. (CRWD)vs › | $216.99B | -1.57% | -2.75% | -3.01% | -3.90% |
| Salesforce, Inc. (CRM)vs › | $212.31B | 8.78% | 8.41% | 5.81% | 4.14% |
ROIC
7.3%
ROE
12.1%
ROIC = NOPAT / Invested Capital, where NOPAT = Operating Income × (1 − effective tax rate) and Invested Capital = Total Assets − (Current Liabilities − Short-Term Debt)
Return on invested capital measures the after-tax operating return a company earns on the capital invested in the business. TGMCharts computes it from reported statements: trailing-twelve-month operating income after tax, over invested capital at the latest balance sheet — total assets less the non-interest-bearing current liabilities (payables, accruals, deferred revenue) that fund them; short-term debt stays in the capital base. The tax rate is the period's own effective rate (income tax ÷ pretax income), capped at 45%; when pretax income is zero or negative, or the tax line is a net benefit, no tax is deducted — the operating figure is shown untaxed rather than adjusted by an assumed rate. Not shown for banks, insurers or funds.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
| DATE | RETURN ON INVESTED CAPITAL (ROIC) |
|---|---|
| 2026-06-30 | 7.33% |
| 2026-03-31 | 7.29% |
| 2025-12-31 | 9.27% |
| 2025-09-30 | 9.43% |
| 2025-06-30 | 8.98% |
| 2025-03-31 | 10.33% |
| 2024-12-31 | 5.76% |
| 2024-09-30 | 5.62% |
| 2024-06-30 | 2.72% |
| 2024-03-31 | 1.78% |
| 2023-12-31 | 0.40% |
| 2023-09-30 | 1.88% |
| 2023-06-30 | 6.73% |
| 2023-03-31 | 9.58% |
