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 24.71% is in line with its 5-year average of 23.87%, around the middle of its 5-year range (20.80%–27.31%).
As of the fiscal period ended Tuesday, June 30, 2026. 0.90% above its 12-month average of 24.49%.
Trailing-twelve-month return on invested capital at each fiscal quarter end; no daily interpolation.
RETURN ON INVESTED CAPITAL (ROIC)
24.71%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
24.49%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
24.82%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
23.87%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
20.74%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
18.05%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
16.66%
CURRENT VS TTM AVG
+0.90%
CURRENT VS 3Y AVG
-0.45%
CURRENT VS 5Y AVG
+3.53%
CURRENT VS 10Y AVG
+19.14%
CURRENT VS 15Y AVG
+36.89%
CURRENT VS 20Y AVG
+48.32%
SECTOR MEDIAN · INDUSTRIALS
9.55%
median of 154 covered companies
CURRENT VS SECTOR MEDIAN
+158.60%
vs the sector median at left
Illinois Tool Works Inc.
Market Cap
$76.39B
Return on Invested Capital (ROIC)
24.71%
TTM Avg
24.49%
3Y Avg
24.82%
5Y Avg
23.87%
Market Cap
$76.45B
Return on Invested Capital (ROIC)
10.95%
TTM Avg
12.63%
3Y Avg
10.01%
5Y Avg
10.48%
Market Cap
$73.75B
Return on Invested Capital (ROIC)
5.92%
TTM Avg
6.18%
3Y Avg
6.03%
5Y Avg
6.34%
Market Cap
$79.10B
Return on Invested Capital (ROIC)
5.02%
TTM Avg
4.89%
3Y Avg
4.83%
5Y Avg
5.73%
Market Cap
$73.60B
Return on Invested Capital (ROIC)
9.97%
TTM Avg
9.50%
3Y Avg
8.59%
5Y Avg
9.56%
Market Cap
$73.60B
Return on Invested Capital (ROIC)
8.89%
TTM Avg
8.82%
3Y Avg
9.98%
5Y Avg
9.70%
Market Cap
$79.67B
Return on Invested Capital (ROIC)
23.53%
TTM Avg
23.31%
3Y Avg
21.46%
5Y Avg
19.94%
Market Cap
$72.96B
Return on Invested Capital (ROIC)
7.33%
TTM Avg
7.38%
3Y Avg
7.64%
5Y Avg
7.88%
Market Cap
$81.99B
Return on Invested Capital (ROIC)
7.65%
TTM Avg
1.50%
3Y Avg
-6.50%
5Y Avg
-6.96%
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Illinois Tool Works Inc. (ITW) | $76.39B | 24.71% | 24.49% | 24.82% | 23.87% |
| Cummins Inc. (CMI)vs › | $76.45B | 10.95% | 12.63% | 10.01% | 10.48% |
| FedEx Corporation (FDX)vs › | $73.75B | 5.92% | 6.18% | 6.03% | 6.34% |
| Canadian Pacific Kansas City Ltd. (CP)vs › | $79.10B | 5.02% | 4.89% | 4.83% | 5.73% |
| Northrop Grumman Corporation (NOC)vs › | $73.60B | 9.97% | 9.50% | 8.59% | 9.56% |
| Canadian National Railway Company (CNI)vs › | $73.60B | 8.89% | 8.82% | 9.98% | 9.70% |
| Cintas Corporation (CTAS)vs › | $79.67B | 23.53% | 23.31% | 21.46% | 19.94% |
| Norfolk Southern Corporation (NSC)vs › | $72.96B | 7.33% | 7.38% | 7.64% | 7.88% |
| Bloom Energy Corporation (BE)vs › | $81.99B | 7.65% | 1.50% | -6.50% | -6.96% |
| Emerson Electric Co. (EMR)vs › | $84.58B | 7.93% | 6.36% | 6.09% | 7.57% |
ROIC
24.7%
ROE
110.4%
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 | 24.71% |
| 2026-03-31 | 24.68% |
| 2025-12-31 | 24.49% |
| 2025-09-30 | 24.18% |
| 2025-06-30 | 24.38% |
| 2025-03-31 | 25.61% |
| 2024-12-31 | 27.31% |
| 2024-09-30 | 25.76% |
| 2024-06-30 | 25.25% |
| 2024-03-31 | 25.11% |
| 2023-12-31 | 24.67% |
| 2023-09-30 | 24.99% |
| 2023-06-30 | 24.01% |
| 2023-03-31 | 23.17% |
| 2022-12-31 | 23.84% |
| 2022-09-30 | 22.63% |
| 2022-06-30 | 21.37% |
| 2022-03-31 | 20.80% |
| 2021-12-31 | 21.04% |
| 2021-09-30 | 21.86% |
| 2021-06-30 | 21.31% |
| 2021-03-31 | 17.73% |
| 2020-12-31 | 16.81% |
| 2020-09-30 | 17.21% |
| 2020-06-30 | 18.44% |
| 2020-03-31 | 21.12% |
| 2019-12-31 | 20.19% |
| 2019-09-30 | 20.51% |
| 2019-06-30 | 20.08% |
| 2019-03-31 | 20.17% |
| 2018-12-31 | 21.35% |
| 2018-09-30 | 15.31% |
| 2018-06-30 | 15.05% |
| 2018-03-30 | 14.20% |
| 2017-12-31 | 13.18% |
| 2017-09-30 | 16.98% |
| 2017-06-30 | 16.61% |
| 2017-03-31 | 16.64% |
| 2016-12-31 | 16.38% |
| 2016-09-30 | 15.51% |
| 2016-06-30 | 15.67% |
| 2016-03-31 | 15.16% |
| 2015-12-31 | 14.42% |
| 2015-09-30 | 14.11% |
| 2015-06-30 | 13.91% |
| 2015-03-31 | 14.65% |
| 2014-12-31 | 12.95% |
| 2014-09-30 | 11.93% |
| 2014-06-30 | 11.03% |
| 2014-03-31 | 10.48% |
| 2013-12-31 | 10.59% |
| 2013-09-30 | 10.50% |
| 2013-06-30 | 11.27% |
| 2013-03-31 | 11.51% |
| 2012-12-31 | 11.52% |
| 2012-09-30 | 12.47% |
| 2012-06-30 | 12.33% |
| 2012-03-31 | 12.09% |
| 2011-12-31 | 13.81% |
| 2011-09-30 | 13.28% |
| 2011-06-30 | 12.72% |
| 2011-03-31 | 12.99% |
| 2010-12-31 | 12.08% |
| 2010-09-30 | 12.67% |
| 2010-06-30 | 12.34% |
| 2010-03-31 | 10.57% |
| 2009-12-31 | 8.07% |
| 2009-09-30 | 6.81% |
| 2009-06-30 | 7.90% |
| 2009-03-31 | 10.29% |
| 2008-12-31 | 12.93% |
| 2008-09-30 | 12.71% |
| 2008-06-30 | 13.27% |
| 2008-03-31 | 13.41% |
| 2007-12-31 | 14.31% |
| 2007-09-30 | 14.47% |
| 2007-06-30 | 14.26% |
| 2007-03-31 | 14.18% |
| 2006-12-31 | 14.53% |
| 2006-09-30 | 14.88% |
| 2006-06-30 | 15.68% |
| 2006-03-31 | 15.61% |
| 2005-12-31 | 15.96% |
| 2005-09-30 | 15.69% |
| 2005-06-30 | 14.16% |
| 2005-03-31 | 13.55% |
| 2004-12-31 | 14.26% |
| 2004-09-30 | 13.78% |
| 2004-06-30 | 12.32% |
| 2004-03-31 | 11.51% |
| 2003-12-31 | 11.05% |
| 2003-09-30 | 10.93% |
| 2003-06-30 | 10.18% |
