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 21.80% is in line with its 5-year average of 23.45%, around the middle of its 5-year range (16.31%–24.97%).
As of the fiscal period ended Tuesday, June 30, 2026. 3.57% below its 12-month average of 22.61%.
Trailing-twelve-month return on invested capital at each fiscal quarter end; no daily interpolation. Q2 FY2026 (2026-06-30): 21.80%.
RETURN ON INVESTED CAPITAL (ROIC)
21.80%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
22.61%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
23.44%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
23.45%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
19.85%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
N/A
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
N/A
CURRENT VS TTM AVG
-3.57%
CURRENT VS 3Y AVG
-6.99%
CURRENT VS 5Y AVG
-7.03%
CURRENT VS 10Y AVG
+9.85%
CURRENT VS 15Y AVG
N/A
CURRENT VS 20Y AVG
N/A
SECTOR MEDIAN · TECHNOLOGY
8.17%
median of 193 covered companies
CURRENT VS SECTOR MEDIAN
+166.88%
vs the sector median at left
Arista Networks, Inc.
Market Cap
$242.93B
Return on Invested Capital (ROIC)
21.80%
TTM Avg
22.61%
3Y Avg
23.44%
5Y Avg
23.45%
Market Cap
$243.69B
Return on Invested Capital (ROIC)
13.02%
TTM Avg
8.86%
3Y Avg
7.92%
5Y Avg
8.43%
Market Cap
$238.93B
Return on Invested Capital (ROIC)
35.75%
TTM Avg
36.17%
3Y Avg
33.56%
5Y Avg
32.79%
Market Cap
$238.90B
Return on Invested Capital (ROIC)
18.81%
TTM Avg
15.57%
3Y Avg
22.12%
5Y Avg
25.71%
Market Cap
$226.06B
Return on Invested Capital (ROIC)
10.12%
TTM Avg
9.80%
3Y Avg
8.91%
5Y Avg
7.63%
Market Cap
$261.26B
Return on Invested Capital (ROIC)
64.29%
TTM Avg
64.29%
3Y Avg
16.19%
5Y Avg
7.93%
Market Cap
$273.11B
Return on Invested Capital (ROIC)
1.03%
TTM Avg
3.35%
3Y Avg
3.82%
5Y Avg
1.38%
Market Cap
$211.59B
Return on Invested Capital (ROIC)
-1.57%
TTM Avg
-2.75%
3Y Avg
-3.01%
5Y Avg
-3.90%
Market Cap
$205.81B
Return on Invested Capital (ROIC)
5.44%
TTM Avg
1.03%
3Y Avg
-0.05%
5Y Avg
-0.75%
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Arista Networks, Inc. (ANET) | $242.93B | 21.80% | 22.61% | 23.44% | 23.45% |
| SAP SE (SAP)vs › | $243.69B | 13.02% | 8.86% | 7.92% | 8.43% |
| KLA Corporation (KLAC)vs › | $238.93B | 35.75% | 36.17% | 33.56% | 32.79% |
| Texas Instruments Incorporated (TXN)vs › | $238.90B | 18.81% | 15.57% | 22.12% | 25.71% |
| International Business Machines Corporation (IBM)vs › | $226.06B | 10.12% | 9.80% | 8.91% | 7.63% |
| Sandisk Corporation (SNDK)vs › | $261.26B | 64.29% | 64.29% | 16.19% | 7.93% |
| Palo Alto Networks, Inc. (PANW)vs › | $273.11B | 1.03% | 3.35% | 3.82% | 1.38% |
| CrowdStrike Holdings, Inc. (CRWD)vs › | $211.59B | -1.57% | -2.75% | -3.01% | -3.90% |
| Marvell Technology, Inc. (MRVL)vs › | $205.81B | 5.44% | 1.03% | -0.05% | -0.75% |
| Arm Holdings plc American Depositary Shares (ARM)vs › | $282.20B | 7.33% | 8.81% | 7.18% | 7.18% |
ROIC
21.8%
ROE
27.3%
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 | 21.80% |
| 2026-03-31 | 22.43% |
| 2025-12-31 | 22.64% |
| 2025-09-30 | 22.71% |
| 2025-06-30 | 23.47% |
| 2025-03-31 | 23.89% |
| 2024-12-31 | 22.74% |
| 2024-09-30 | 23.21% |
| 2024-06-30 | 23.91% |
| 2024-03-31 | 23.98% |
| 2023-12-31 | 24.20% |
| 2023-09-30 | 24.81% |
| 2023-06-30 | 24.97% |
| 2023-03-31 | 24.95% |
| 2022-12-31 | 23.82% |
| 2022-09-30 | 23.05% |
| 2022-06-30 | 22.11% |
| 2022-03-31 | 18.99% |
| 2021-12-31 | 18.06% |
| 2021-09-30 | 17.06% |
| 2021-06-30 | 16.31% |
| 2021-03-31 | 15.87% |
| 2020-12-31 | 15.13% |
| 2020-09-30 | 17.90% |
| 2020-06-30 | 19.03% |
| 2020-03-31 | 20.98% |
| 2019-12-31 | 22.39% |
| 2019-09-30 | 23.61% |
| 2019-06-30 | 23.79% |
| 2019-03-31 | 11.79% |
| 2018-12-31 | 11.04% |
| 2018-09-30 | 9.70% |
| 2018-06-30 | 8.93% |
| 2018-03-31 | 22.49% |
| 2017-12-31 | 21.71% |
| 2017-09-30 | 21.71% |
| 2017-06-30 | 19.03% |
| 2017-03-31 | 16.51% |
| 2016-12-31 | 14.58% |
| 2016-09-30 | 14.66% |
| 2016-06-30 | 13.87% |
| 2016-03-31 | 13.44% |
| 2015-12-31 | 13.39% |
| 2015-09-30 | 13.08% |
| 2015-06-30 | 13.26% |
| 2015-03-31 | 13.90% |
| 2014-12-31 | 13.46% |
| 2014-09-30 | 12.42% |
| 2014-06-30 | 11.64% |
| 2014-03-31 | 19.59% |
| 2013-12-31 | 18.98% |
| 2013-09-30 | 16.57% |
