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 17.33% is in line with its 5-year average of 18.67%, near the high end of its 5-year range (-3.89%–25.44%).
As of the fiscal period ended Tuesday, June 30, 2026. 3.26% above its 12-month average of 16.78%.
Trailing-twelve-month return on invested capital at each fiscal quarter end; no daily interpolation.
RETURN ON INVESTED CAPITAL (ROIC)
17.33%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
16.78%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
11.30%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
18.67%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
13.30%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
4.39%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
-10.69%
CURRENT VS TTM AVG
+3.26%
CURRENT VS 3Y AVG
+53.33%
CURRENT VS 5Y AVG
-7.20%
CURRENT VS 10Y AVG
+30.29%
CURRENT VS 15Y AVG
+294.75%
CURRENT VS 20Y AVG
+262.10%
SECTOR MEDIAN · HEALTHCARE
8.75%
median of 90 covered companies
CURRENT VS SECTOR MEDIAN
+98.13%
vs the sector median at left
Vertex Pharmaceuticals Incorporated
Market Cap
$134.42B
Return on Invested Capital (ROIC)
17.33%
TTM Avg
16.78%
3Y Avg
11.30%
5Y Avg
18.67%
Market Cap
$132.02B
Return on Invested Capital (ROIC)
15.47%
TTM Avg
14.35%
3Y Avg
12.24%
5Y Avg
10.38%
Market Cap
$123.92B
Return on Invested Capital (ROIC)
15.11%
TTM Avg
12.85%
3Y Avg
12.25%
5Y Avg
11.92%
Market Cap
$144.93B
Return on Invested Capital (ROIC)
5.03%
TTM Avg
5.92%
3Y Avg
6.55%
5Y Avg
6.70%
Market Cap
$123.17B
Return on Invested Capital (ROIC)
4.14%
TTM Avg
4.18%
3Y Avg
4.49%
5Y Avg
4.97%
Market Cap
$118.35B
Return on Invested Capital (ROIC)
6.13%
TTM Avg
6.11%
3Y Avg
5.46%
5Y Avg
5.53%
Market Cap
$158.76B
Return on Invested Capital (ROIC)
9.33%
TTM Avg
9.06%
3Y Avg
10.61%
5Y Avg
10.43%
Market Cap
$106.00B
Return on Invested Capital (ROIC)
9.82%
TTM Avg
10.14%
3Y Avg
10.34%
5Y Avg
10.08%
Market Cap
$105.47B
Return on Invested Capital (ROIC)
28.34%
TTM Avg
27.87%
3Y Avg
25.19%
5Y Avg
21.44%
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Vertex Pharmaceuticals Incorporated (VRTX) | $134.42B | 17.33% | 16.78% | 11.30% | 18.67% |
| Bristol-Myers Squibb Company (BMY)vs › | $132.02B | 15.47% | 14.35% | 12.24% | 10.38% |
| Intuitive Surgical, Inc. (ISRG)vs › | $123.92B | 15.11% | 12.85% | 12.25% | 11.92% |
| Danaher Corporation (DHR)vs › | $144.93B | 5.03% | 5.92% | 6.55% | 6.70% |
| CVS Health Corp. (CVS)vs › | $123.17B | 4.14% | 4.18% | 4.49% | 4.97% |
| Medtronic plc (MDT)vs › | $118.35B | 6.13% | 6.11% | 5.46% | 5.53% |
| Pfizer Inc. (PFE)vs › | $158.76B | 9.33% | 9.06% | 10.61% | 10.43% |
| Stryker Corporation (SYK)vs › | $106.00B | 9.82% | 10.14% | 10.34% | 10.08% |
| McKesson Corporation (MCK)vs › | $105.47B | 28.34% | 27.87% | 25.19% | 21.44% |
| Sanofi (SNY)vs › | $104.06B | 5.42% | 6.63% | 6.62% | 7.56% |
ROIC
17.3%
ROE
21.8%
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 | 17.33% |
| 2026-03-31 | 17.74% |
| 2025-12-31 | 16.25% |
| 2025-09-30 | 16.18% |
| 2025-06-30 | 16.40% |
| 2025-03-31 | -3.89% |
| 2024-12-31 | -0.68% |
| 2024-09-30 | -0.81% |
| 2024-06-30 | -1.16% |
| 2024-03-31 | 17.57% |
| 2023-12-31 | 16.51% |
| 2023-09-30 | 17.22% |
| 2023-06-30 | 18.23% |
| 2023-03-31 | 19.83% |
| 2022-12-31 | 21.94% |
| 2022-09-30 | 23.94% |
| 2022-06-30 | 25.44% |
| 2022-03-31 | 20.80% |
| 2021-12-31 | 21.14% |
| 2021-09-30 | 19.61% |
| 2021-06-30 | 18.04% |
| 2021-03-31 | 25.03% |
| 2020-12-31 | 25.17% |
| 2020-09-30 | 26.52% |
| 2020-06-30 | 23.16% |
| 2020-03-31 | 19.46% |
| 2019-12-31 | 14.47% |
| 2019-09-30 | 12.63% |
| 2019-06-30 | 15.24% |
| 2019-03-31 | 14.40% |
| 2018-12-31 | 12.39% |
| 2018-09-30 | 17.04% |
| 2018-06-30 | 2.98% |
| 2018-03-31 | -0.60% |
| 2017-12-31 | 4.50% |
| 2017-09-30 | 1.49% |
| 2017-06-30 | 12.77% |
| 2017-03-31 | 11.05% |
| 2016-12-31 | 0.29% |
| 2016-09-30 | -4.05% |
| 2016-06-30 | -6.36% |
| 2016-03-31 | -14.94% |
| 2015-12-31 | -22.73% |
| 2015-09-30 | -27.53% |
| 2015-06-30 | -31.27% |
| 2015-03-31 | -34.29% |
| 2014-12-31 | -34.96% |
| 2014-09-30 | -40.00% |
| 2014-06-30 | -45.90% |
| 2014-03-31 | -37.37% |
| 2013-12-31 | -47.02% |
| 2013-09-30 | -32.52% |
| 2013-06-30 | -26.05% |
| 2013-03-31 | -26.59% |
| 2012-12-31 | 0.10% |
| 2012-09-30 | 10.12% |
| 2012-06-30 | 22.67% |
| 2012-03-31 | 17.28% |
| 2011-12-31 | 4.28% |
| 2011-09-30 | -16.86% |
| 2011-06-30 | -50.19% |
| 2011-03-31 | -57.29% |
| 2010-12-31 | -50.16% |
| 2010-09-30 | -42.87% |
| 2010-06-30 | -45.88% |
| 2010-03-31 | -39.29% |
| 2009-12-31 | -36.06% |
| 2009-09-30 | -45.39% |
| 2009-06-30 | -47.09% |
| 2009-03-31 | -37.93% |
| 2008-12-31 | -60.57% |
| 2008-09-30 | -46.51% |
| 2008-06-30 | -50.23% |
| 2008-03-31 | -60.03% |
| 2007-12-31 | -99.43% |
| 2007-09-30 | -74.16% |
| 2007-06-30 | -50.19% |
| 2007-03-31 | -37.54% |
| 2006-12-31 | -29.58% |
| 2006-09-30 | -28.17% |
| 2006-06-30 | -38.87% |
| 2006-03-31 | -36.22% |
| 2005-12-31 | -33.40% |
| 2005-09-30 | -38.23% |
| 2005-06-30 | -34.22% |
| 2005-03-31 | -47.81% |
| 2004-12-31 | -39.52% |
| 2004-09-30 | -50.35% |
| 2004-06-30 | -55.67% |
| 2004-03-31 | -58.40% |
| 2003-12-31 | -44.83% |
| 2003-09-30 | -30.07% |
| 2003-06-30 | -19.78% |
