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 16.51% is 12% below its 5-year average of 18.78%, near the low end of its 5-year range (14.82%–24.45%).
As of the fiscal period ended Tuesday, June 30, 2026. 4.57% below its 12-month average of 17.30%.
Trailing-twelve-month return on invested capital at each fiscal quarter end; no daily interpolation.
RETURN ON INVESTED CAPITAL (ROIC)
16.51%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
17.30%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
16.97%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
18.78%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
16.00%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
N/A
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
N/A
CURRENT VS TTM AVG
-4.57%
CURRENT VS 3Y AVG
-2.71%
CURRENT VS 5Y AVG
-12.08%
CURRENT VS 10Y AVG
+3.21%
CURRENT VS 15Y AVG
N/A
CURRENT VS 20Y AVG
N/A
SECTOR MEDIAN · INDUSTRIALS
9.55%
median of 146 covered companies
CURRENT VS SECTOR MEDIAN
+72.80%
vs the sector median at left
Ferguson plc
Market Cap
$45.24B
Return on Invested Capital (ROIC)
16.51%
TTM Avg
17.30%
3Y Avg
16.97%
5Y Avg
18.78%
Market Cap
$44.99B
Return on Invested Capital (ROIC)
20.44%
TTM Avg
18.61%
3Y Avg
25.57%
5Y Avg
26.74%
Market Cap
$45.74B
Return on Invested Capital (ROIC)
11.04%
TTM Avg
11.66%
3Y Avg
11.11%
5Y Avg
10.22%
Market Cap
$46.95B
Return on Invested Capital (ROIC)
11.37%
TTM Avg
10.50%
3Y Avg
9.87%
5Y Avg
10.08%
Market Cap
$42.63B
Return on Invested Capital (ROIC)
6.80%
TTM Avg
3.93%
3Y Avg
3.03%
5Y Avg
2.49%
Market Cap
$48.18B
Return on Invested Capital (ROIC)
19.92%
TTM Avg
13.19%
3Y Avg
14.28%
5Y Avg
13.82%
Market Cap
$48.34B
Return on Invested Capital (ROIC)
11.26%
TTM Avg
10.50%
3Y Avg
9.87%
5Y Avg
10.08%
Market Cap
$48.50B
Return on Invested Capital (ROIC)
5.03%
TTM Avg
4.58%
3Y Avg
5.74%
5Y Avg
7.20%
Market Cap
$41.76B
Return on Invested Capital (ROIC)
6.63%
TTM Avg
5.81%
3Y Avg
5.96%
5Y Avg
5.43%
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Ferguson plc (FERG) | $45.24B | 16.51% | 17.30% | 16.97% | 18.78% |
| Paychex, Inc. (PAYX)vs › | $44.99B | 20.44% | 18.61% | 25.57% | 26.74% |
| Thomson Reuters Corporation (TRI)vs › | $45.74B | 11.04% | 11.66% | 11.11% | 10.22% |
| HEICO Corporation (HEI)vs › | $46.95B | 11.37% | 10.50% | 9.87% | 10.08% |
| Ferrovial SE (FER)vs › | $42.63B | 6.80% | 3.93% | 3.03% | 2.49% |
| Rockwell Automation, Inc. (ROK)vs › | $48.18B | 19.92% | 13.19% | 14.28% | 13.82% |
| HEICO Corporation (HEI-A)vs › | $48.34B | 11.26% | 10.50% | 9.87% | 10.08% |
| Carrier Global Corporation (CARR)vs › | $48.50B | 5.03% | 4.58% | 5.74% | 7.20% |
| Waste Connections, Inc. (WCN)vs › | $41.76B | 6.63% | 5.81% | 5.96% | 5.43% |
| L3Harris Technologies, Inc. (LHX)vs › | $48.78B | 5.30% | 5.24% | 5.14% | 4.21% |
ROIC
16.5%
ROE
32.9%
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 | 16.51% |
| 2026-03-31 | 18.37% |
| 2025-12-31 | 18.04% |
| 2025-10-31 | 17.10% |
| 2025-07-31 | 16.50% |
| 2025-04-30 | 14.82% |
| 2025-01-31 | 14.86% |
| 2024-10-31 | 15.54% |
| 2024-07-31 | 16.23% |
| 2024-04-30 | 18.16% |
| 2024-01-31 | 17.28% |
| 2023-10-31 | 18.01% |
| 2023-07-31 | 19.19% |
| 2023-04-30 | 19.66% |
| 2023-01-31 | 21.38% |
| 2022-10-31 | 21.61% |
| 2022-07-31 | 21.62% |
| 2022-04-30 | 24.45% |
| 2022-01-31 | 22.89% |
| 2021-10-31 | 22.35% |
| 2021-07-31 | 19.78% |
| 2021-01-31 | 13.18% |
| 2020-07-31 | 11.35% |
| 2020-04-30 | 11.58% |
| 2020-01-31 | 12.03% |
| 2019-10-31 | 12.25% |
| 2019-07-31 | 15.48% |
| 2019-04-30 | 15.42% |
| 2019-01-31 | 14.71% |
| 2018-10-31 | 13.97% |
| 2018-07-31 | 14.79% |
| 2018-04-30 | 16.08% |
| 2018-01-31 | 12.93% |
| 2017-10-31 | 12.72% |
| 2017-07-31 | 13.35% |
| 2017-04-30 | 10.92% |
| 2017-01-31 | 9.94% |
| 2016-10-31 | 9.99% |
| 2016-07-31 | 8.87% |
| 2015-01-31 | 7.19% |
| 2014-10-31 | 9.26% |
| 2014-07-31 | 11.46% |
| 2014-04-30 | 10.97% |
| 2014-01-31 | 9.82% |
| 2013-10-31 | 9.43% |
| 2013-07-31 | 9.61% |
