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 5.80% is 57% below its 5-year average of 13.54%, near the low end of its 5-year range (1.97%–21.22%).
As of the fiscal period ended Tuesday, June 30, 2026. 64.16% below its 12-month average of 16.17%.
Trailing-twelve-month return on invested capital at each fiscal quarter end; no daily interpolation. Q2 FY2026 (2026-06-30): 5.80%.
RETURN ON INVESTED CAPITAL (ROIC)
5.80%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
16.17%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
12.75%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
13.54%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
11.54%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
10.02%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
9.74%
CURRENT VS TTM AVG
-64.16%
CURRENT VS 3Y AVG
-54.52%
CURRENT VS 5Y AVG
-57.19%
CURRENT VS 10Y AVG
-49.77%
CURRENT VS 15Y AVG
-42.13%
CURRENT VS 20Y AVG
-40.50%
SECTOR MEDIAN · HEALTHCARE
8.75%
median of 90 covered companies
CURRENT VS SECTOR MEDIAN
-33.71%
vs the sector median at left
Merck & Co., Inc.
Market Cap
$364.55B
Return on Invested Capital (ROIC)
5.80%
TTM Avg
16.17%
3Y Avg
12.75%
5Y Avg
13.54%
Market Cap
$356.96B
Return on Invested Capital (ROIC)
9.19%
TTM Avg
10.28%
3Y Avg
12.20%
5Y Avg
12.63%
Market Cap
$340.28B
Return on Invested Capital (ROIC)
19.71%
TTM Avg
16.50%
3Y Avg
18.66%
5Y Avg
20.03%
Market Cap
$443.43B
Return on Invested Capital (ROIC)
13.46%
TTM Avg
10.91%
3Y Avg
11.35%
5Y Avg
11.16%
Market Cap
$243.39B
Return on Invested Capital (ROIC)
12.83%
TTM Avg
11.72%
3Y Avg
9.44%
5Y Avg
7.92%
Market Cap
$225.09B
Return on Invested Capital (ROIC)
7.44%
TTM Avg
7.81%
3Y Avg
8.16%
5Y Avg
9.11%
Market Cap
$211.17B
Return on Invested Capital (ROIC)
14.22%
TTM Avg
11.04%
3Y Avg
11.80%
5Y Avg
12.80%
Market Cap
$197.87B
Return on Invested Capital (ROIC)
30.21%
TTM Avg
34.36%
3Y Avg
43.28%
5Y Avg
43.42%
Market Cap
$182.12B
Return on Invested Capital (ROIC)
6.07%
TTM Avg
9.16%
3Y Avg
9.70%
5Y Avg
9.86%
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Merck & Co., Inc. (MRK) | $364.55B | 5.80% | 16.17% | 12.75% | 13.54% |
| UnitedHealth Group Incorporated (UNH)vs › | $356.96B | 9.19% | 10.28% | 12.20% | 12.63% |
| Roche Holding AG (RHHBY)vs › | $340.28B | 19.71% | 16.50% | 18.66% | 20.03% |
| AbbVie Inc. (ABBV)vs › | $443.43B | 13.46% | 10.91% | 11.35% | 11.16% |
| AstraZeneca PLC (AZN)vs › | $243.39B | 12.83% | 11.72% | 9.44% | 7.92% |
| Thermo Fisher Scientific Inc. (TMO)vs › | $225.09B | 7.44% | 7.81% | 8.16% | 9.11% |
| Amgen Inc. (AMGN)vs › | $211.17B | 14.22% | 11.04% | 11.80% | 12.80% |
| Novo Nordisk A/S (NVO)vs › | $197.87B | 30.21% | 34.36% | 43.28% | 43.42% |
| Abbott Laboratories (ABT)vs › | $182.12B | 6.07% | 9.16% | 9.70% | 9.86% |
| Gilead Sciences, Inc. (GILD)vs › | $180.83B | -3.66% | 11.34% | 11.28% | 10.29% |
ROIC
5.8%
ROE
7.6%
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 | 5.80% |
| 2026-03-31 | 13.34% |
| 2025-12-31 | 20.77% |
| 2025-09-30 | 21.22% |
| 2025-06-30 | 19.73% |
| 2025-03-31 | 20.06% |
| 2024-12-31 | 19.03% |
| 2024-09-30 | 13.78% |
| 2024-06-30 | 16.14% |
| 2024-03-31 | 3.47% |
| 2023-12-31 | 1.97% |
| 2023-09-30 | 5.98% |
| 2023-06-30 | 4.39% |
| 2023-03-31 | 16.15% |
| 2022-12-31 | 18.59% |
| 2022-09-30 | 19.63% |
| 2022-06-30 | 20.03% |
| 2022-03-31 | 16.51% |
| 2021-12-31 | 13.95% |
| 2021-09-30 | 8.27% |
| 2021-06-30 | 5.54% |
| 2021-03-31 | 6.73% |
| 2020-12-31 | 7.86% |
| 2020-09-30 | 13.82% |
| 2020-06-30 | 13.53% |
| 2020-03-31 | 15.66% |
| 2019-12-31 | 15.87% |
| 2019-09-30 | 15.22% |
| 2019-06-30 | 14.58% |
| 2019-03-31 | 13.33% |
| 2018-12-31 | 9.67% |
| 2018-09-30 | 6.46% |
| 2018-06-30 | 4.48% |
| 2018-03-31 | 4.63% |
| 2017-12-31 | 5.27% |
| 2017-09-30 | 4.85% |
| 2017-06-30 | 8.00% |
| 2017-03-31 | 6.73% |
| 2016-12-31 | 6.48% |
| 2016-09-30 | 8.08% |
| 2016-06-30 | 7.62% |
| 2016-03-31 | 7.68% |
| 2015-12-31 | 7.33% |
| 2015-09-30 | 5.44% |
| 2015-06-30 | 4.69% |
| 2015-03-31 | 4.47% |
| 2014-12-31 | 5.59% |
| 2014-09-30 | 6.70% |
| 2014-06-30 | 7.88% |
| 2014-03-31 | 6.36% |
| 2013-12-31 | 6.76% |
| 2013-09-30 | 6.90% |
| 2013-06-30 | 6.73% |
| 2013-03-31 | 7.66% |
| 2012-12-31 | 7.73% |
| 2012-09-30 | 8.19% |
| 2012-06-30 | 8.05% |
| 2012-03-31 | 9.12% |
| 2011-12-31 | 8.66% |
| 2011-09-30 | 6.14% |
| 2011-06-30 | 5.68% |
| 2011-03-31 | 3.11% |
| 2010-12-31 | 2.15% |
| 2010-09-30 | 3.42% |
| 2010-06-30 | 3.30% |
| 2010-03-31 | 3.20% |
| 2009-12-31 | 3.49% |
| 2009-09-30 | 10.14% |
| 2009-06-30 | 11.10% |
| 2009-03-31 | 13.03% |
| 2008-12-31 | 13.81% |
| 2008-09-30 | 16.56% |
| 2008-06-30 | 14.24% |
| 2008-03-31 | 13.72% |
| 2007-12-31 | 14.40% |
| 2007-09-30 | 8.39% |
| 2007-06-30 | 7.45% |
| 2007-03-31 | 7.26% |
| 2006-12-31 | 7.93% |
| 2006-09-30 | 9.93% |
| 2006-06-30 | 11.51% |
| 2006-03-31 | 10.67% |
| 2005-12-31 | 10.67% |
| 2005-09-30 | 10.80% |
| 2005-06-30 | 11.05% |
| 2005-03-31 | 13.91% |
| 2004-12-31 | 14.62% |
| 2004-09-30 | 15.58% |
| 2004-06-30 | 17.68% |
| 2004-03-31 | 17.58% |
| 2003-12-31 | 18.63% |
| 2003-09-30 | 18.85% |
| 2003-06-30 | 15.91% |
