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 13.93% is 11% above its 5-year average of 12.51%, around the middle of its 5-year range (7.45%–18.57%).
As of the fiscal period ended Tuesday, June 30, 2026. 14.99% below its 12-month average of 16.39%.
Trailing-twelve-month return on invested capital at each fiscal quarter end; no daily interpolation. Q2 FY2026 (2026-06-30): 13.93%.
RETURN ON INVESTED CAPITAL (ROIC)
13.93%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
16.39%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
15.05%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
12.51%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
9.52%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
8.11%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
9.31%
CURRENT VS TTM AVG
-14.99%
CURRENT VS 3Y AVG
-7.41%
CURRENT VS 5Y AVG
+11.37%
CURRENT VS 10Y AVG
+46.34%
CURRENT VS 15Y AVG
+71.82%
CURRENT VS 20Y AVG
+49.72%
SECTOR MEDIAN · HEALTHCARE
8.40%
median of 98 covered companies
CURRENT VS SECTOR MEDIAN
+65.87%
vs the sector median at left
Novartis AG
Market Cap
$267.86B
Return on Invested Capital (ROIC)
13.93%
TTM Avg
16.39%
3Y Avg
15.05%
5Y Avg
12.51%
Market Cap
$243.50B
Return on Invested Capital (ROIC)
12.83%
TTM Avg
11.72%
3Y Avg
9.44%
5Y Avg
7.92%
Market Cap
$241.79B
Return on Invested Capital (ROIC)
7.56%
TTM Avg
7.81%
3Y Avg
8.16%
5Y Avg
9.11%
Market Cap
$217.85B
Return on Invested Capital (ROIC)
14.22%
TTM Avg
11.04%
3Y Avg
11.80%
5Y Avg
12.80%
Market Cap
$331.65B
Return on Invested Capital (ROIC)
19.71%
TTM Avg
16.50%
3Y Avg
18.66%
5Y Avg
20.03%
Market Cap
$337.10B
Return on Invested Capital (ROIC)
9.19%
TTM Avg
10.28%
3Y Avg
12.20%
5Y Avg
12.63%
Market Cap
$355.78B
Return on Invested Capital (ROIC)
5.80%
TTM Avg
18.65%
3Y Avg
14.46%
5Y Avg
12.98%
Market Cap
$179.35B
Return on Invested Capital (ROIC)
-3.66%
TTM Avg
11.34%
3Y Avg
11.28%
5Y Avg
10.29%
Market Cap
$168.48B
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 |
|---|---|---|---|---|---|
| Novartis AG (NVS) | $267.86B | 13.93% | 16.39% | 15.05% | 12.51% |
| AstraZeneca PLC (AZN)vs › | $243.50B | 12.83% | 11.72% | 9.44% | 7.92% |
| Thermo Fisher Scientific Inc. (TMO)vs › | $241.79B | 7.56% | 7.81% | 8.16% | 9.11% |
| Amgen Inc. (AMGN)vs › | $217.85B | 14.22% | 11.04% | 11.80% | 12.80% |
| Roche Holding AG (RHHBY)vs › | $331.65B | 19.71% | 16.50% | 18.66% | 20.03% |
| UnitedHealth Group Incorporated (UNH)vs › | $337.10B | 9.19% | 10.28% | 12.20% | 12.63% |
| Merck & Co., Inc. (MRK)vs › | $355.78B | 5.80% | 18.65% | 14.46% | 12.98% |
| Gilead Sciences, Inc. (GILD)vs › | $179.35B | -3.66% | 11.34% | 11.28% | 10.29% |
| Abbott Laboratories (ABT)vs › | $168.48B | 6.07% | 9.16% | 9.70% | 9.86% |
| Novo Nordisk A/S (NVO)vs › | $165.95B | 30.21% | 34.36% | 43.28% | 43.42% |
ROIC
13.9%
ROE
30.7%
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 | 13.93% |
| 2026-03-31 | 15.47% |
| 2025-12-31 | 15.98% |
| 2025-09-29 | 18.57% |
| 2025-06-30 | 18.00% |
| 2025-03-31 | 17.93% |
| 2024-12-31 | 15.59% |
| 2024-09-30 | 15.32% |
| 2024-06-30 | 14.02% |
| 2024-03-31 | 13.42% |
| 2023-12-31 | 10.96% |
| 2023-09-30 | 11.38% |
| 2023-06-30 | 8.89% |
| 2023-03-31 | 8.16% |
| 2022-12-31 | 7.45% |
| 2022-09-30 | 8.99% |
| 2022-06-30 | 9.79% |
| 2022-03-31 | 10.87% |
| 2021-12-31 | 9.58% |
| 2021-09-30 | 9.74% |
| 2021-06-30 | 8.68% |
| 2021-03-31 | 7.89% |
| 2020-12-31 | 7.61% |
| 2020-09-30 | 6.77% |
| 2020-06-30 | 7.12% |
| 2020-03-31 | 7.36% |
| 2019-12-31 | 7.47% |
| 2019-09-30 | 7.64% |
| 2019-06-30 | 7.64% |
| 2019-03-31 | 8.43% |
| 2018-12-31 | 6.05% |
| 2018-09-30 | 6.62% |
| 2018-06-30 | 6.73% |
| 2018-03-31 | 6.55% |
| 2017-12-31 | 6.43% |
| 2017-09-30 | 5.89% |
| 2017-06-30 | 5.90% |
| 2017-03-31 | 5.82% |
| 2016-12-31 | 6.22% |
| 2016-09-30 | 6.25% |
| 2016-06-30 | 6.31% |
| 2016-03-31 | 6.41% |
| 2015-12-31 | 6.84% |
| 2015-09-30 | 7.30% |
| 2015-06-30 | 7.65% |
| 2015-03-31 | 8.31% |
| 2014-12-31 | 9.23% |
| 2014-09-30 | 9.18% |
| 2014-06-30 | 8.99% |
| 2014-03-31 | 8.77% |
| 2013-12-31 | 8.79% |
| 2013-09-30 | 8.83% |
| 2013-06-30 | 9.37% |
| 2013-03-31 | 9.43% |
| 2012-12-31 | 9.12% |
| 2012-09-30 | 8.44% |
| 2012-06-30 | 8.56% |
| 2012-03-31 | 8.67% |
| 2011-12-31 | 9.37% |
| 2011-09-30 | 9.92% |
| 2011-06-30 | 9.19% |
| 2011-03-31 | 8.74% |
| 2010-12-31 | 9.16% |
| 2010-09-30 | 8.94% |
| 2010-06-30 | 11.69% |
| 2010-03-31 | 11.37% |
| 2009-12-31 | 10.47% |
| 2009-09-30 | 9.78% |
| 2009-06-30 | 10.12% |
| 2009-03-31 | 11.28% |
| 2008-12-31 | 11.56% |
| 2008-09-30 | 9.11% |
| 2008-06-30 | 8.80% |
| 2008-03-31 | 9.49% |
| 2007-12-31 | 9.47% |
| 2007-09-30 | 10.99% |
| 2007-06-30 | 11.44% |
| 2007-03-31 | 12.11% |
| 2006-12-31 | 11.47% |
| 2006-09-30 | 11.35% |
| 2006-06-30 | 11.29% |
| 2006-03-31 | 12.27% |
| 2005-12-31 | 11.84% |
| 2005-09-30 | 12.64% |
| 2005-06-30 | 12.56% |
| 2005-03-31 | 13.51% |
| 2004-12-31 | 11.59% |
| 2004-09-30 | 12.78% |
| 2004-06-30 | 12.47% |
| 2004-03-31 | 11.91% |
| 2003-12-31 | 11.62% |
| 2003-09-30 | 12.62% |
| 2003-06-30 | 12.42% |
