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 13.29% is 28% below its 5-year average of 18.47%, near the low end of its 5-year range (12.19%–23.99%).
As of the fiscal period ended Tuesday, June 30, 2026. 2.17% below its 12-month average of 13.58%.
Trailing-twelve-month return on invested capital at each fiscal quarter end; no daily interpolation.
RETURN ON INVESTED CAPITAL (ROIC)
13.29%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
13.58%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
16.42%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
18.47%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
17.37%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
15.13%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
12.88%
CURRENT VS TTM AVG
-2.17%
CURRENT VS 3Y AVG
-19.07%
CURRENT VS 5Y AVG
-28.05%
CURRENT VS 10Y AVG
-23.50%
CURRENT VS 15Y AVG
-12.16%
CURRENT VS 20Y AVG
+3.14%
SECTOR MEDIAN · TECHNOLOGY
8.17%
median of 193 covered companies
CURRENT VS SECTOR MEDIAN
+62.64%
vs the sector median at left
Cadence Design Systems, Inc.
Market Cap
$78.62B
Return on Invested Capital (ROIC)
13.29%
TTM Avg
13.58%
3Y Avg
16.42%
5Y Avg
18.47%
Market Cap
$76.75B
Return on Invested Capital (ROIC)
16.59%
TTM Avg
18.95%
3Y Avg
19.16%
5Y Avg
18.05%
Market Cap
$76.51B
Return on Invested Capital (ROIC)
8.17%
TTM Avg
1.58%
3Y Avg
-2.18%
5Y Avg
0.95%
Market Cap
$75.58B
Return on Invested Capital (ROIC)
1.74%
TTM Avg
7.06%
3Y Avg
11.34%
5Y Avg
11.10%
Market Cap
$74.27B
Return on Invested Capital (ROIC)
0.23%
TTM Avg
0.17%
3Y Avg
-0.80%
5Y Avg
-0.85%
Market Cap
$73.94B
Return on Invested Capital (ROIC)
6.18%
TTM Avg
3.59%
3Y Avg
4.35%
5Y Avg
4.42%
Market Cap
$86.68B
Return on Invested Capital (ROIC)
16.02%
TTM Avg
15.42%
3Y Avg
13.33%
5Y Avg
12.92%
Market Cap
$87.45B
Return on Invested Capital (ROIC)
7.20%
TTM Avg
5.97%
3Y Avg
7.71%
5Y Avg
7.86%
Market Cap
$60.10B
Return on Invested Capital (ROIC)
18.22%
TTM Avg
15.76%
3Y Avg
18.62%
5Y Avg
17.70%
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Cadence Design Systems, Inc. (CDNS) | $78.62B | 13.29% | 13.58% | 16.42% | 18.47% |
| Motorola Solutions, Inc. (MSI)vs › | $76.75B | 16.59% | 18.95% | 19.16% | 18.05% |
| Lumentum Holdings Inc. (LITE)vs › | $76.51B | 8.17% | 1.58% | -2.18% | 0.95% |
| Synopsys, Inc. (SNPS)vs › | $75.58B | 1.74% | 7.06% | 11.34% | 11.10% |
| Datadog, Inc. (DDOG)vs › | $74.27B | 0.23% | 0.17% | -0.80% | -0.85% |
| Hewlett Packard Enterprise Company (HPE)vs › | $73.94B | 6.18% | 3.59% | 4.35% | 4.42% |
| Intuit Inc. (INTU)vs › | $86.68B | 16.02% | 15.42% | 13.33% | 12.92% |
| ASE Technology Holding Co., Ltd. (ASX)vs › | $87.45B | 7.20% | 5.97% | 7.71% | 7.86% |
| Monolithic Power Systems, Inc. (MPWR)vs › | $60.10B | 18.22% | 15.76% | 18.62% | 17.70% |
| Coherent, Inc. (COHR)vs › | $59.95B | 5.11% | 3.84% | 2.70% | 3.59% |
ROIC
13.3%
ROE
20.1%
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 | 13.29% |
| 2026-03-31 | 12.19% |
| 2025-12-31 | 14.11% |
| 2025-09-30 | 14.50% |
| 2025-06-30 | 13.82% |
| 2025-03-31 | 14.22% |
| 2024-12-31 | 13.43% |
| 2024-09-30 | 12.34% |
| 2024-06-30 | 15.91% |
| 2024-03-31 | 21.09% |
| 2023-12-31 | 22.95% |
| 2023-09-30 | 22.89% |
| 2023-06-30 | 22.70% |
| 2023-03-31 | 21.69% |
| 2022-12-31 | 22.42% |
| 2022-10-01 | 20.91% |
| 2022-07-02 | 23.99% |
| 2022-04-02 | 22.12% |
| 2021-12-31 | 20.66% |
| 2021-10-02 | 21.18% |
| 2021-07-03 | 21.40% |
| 2021-04-03 | 20.54% |
| 2020-12-31 | 19.07% |
| 2020-09-26 | 16.86% |
| 2020-06-27 | 16.26% |
| 2020-03-28 | 16.15% |
| 2019-12-31 | 18.32% |
| 2019-09-28 | 21.56% |
| 2019-06-29 | 21.91% |
| 2019-03-30 | 20.60% |
| 2018-12-31 | 19.57% |
| 2018-09-29 | 14.19% |
| 2018-06-30 | 11.26% |
| 2018-03-31 | 10.99% |
| 2017-12-31 | 11.28% |
| 2017-09-30 | 14.67% |
| 2017-07-01 | 14.74% |
| 2017-04-01 | 13.91% |
| 2016-12-31 | 13.43% |
| 2016-10-01 | 14.76% |
| 2016-07-02 | 14.22% |
| 2016-04-02 | 13.73% |
| 2015-12-31 | 14.84% |
| 2015-10-03 | 14.26% |
| 2015-07-04 | 12.04% |
| 2015-04-04 | 8.79% |
| 2014-12-31 | 8.40% |
| 2014-09-27 | 8.89% |
| 2014-06-28 | 8.64% |
| 2014-03-29 | 8.46% |
| 2013-12-31 | 11.77% |
| 2013-09-28 | 11.70% |
| 2013-06-29 | 12.45% |
| 2013-03-30 | 14.34% |
| 2012-12-31 | 13.96% |
| 2012-09-29 | 13.39% |
| 2012-06-30 | 11.18% |
| 2012-03-31 | 10.75% |
| 2011-12-31 | 8.76% |
| 2011-10-01 | 3.06% |
| 2011-07-02 | 1.21% |
| 2011-04-02 | -0.41% |
| 2010-12-31 | -2.39% |
| 2010-10-02 | -1.10% |
| 2010-07-03 | -1.66% |
| 2010-04-03 | -7.94% |
| 2009-12-31 | -12.20% |
| 2009-10-03 | -151.99% |
| 2009-07-04 | -161.38% |
| 2009-04-04 | -146.63% |
| 2008-12-31 | -138.00% |
| 2008-09-27 | -0.16% |
| 2008-06-28 | 5.23% |
| 2008-03-29 | 6.59% |
| 2007-12-31 | 7.80% |
| 2007-09-29 | 6.64% |
| 2007-06-30 | 5.74% |
| 2007-03-31 | 5.14% |
| 2006-12-31 | 4.52% |
| 2006-09-30 | 4.14% |
| 2006-07-01 | 3.41% |
| 2006-04-01 | 2.56% |
| 2005-12-31 | 2.31% |
| 2005-10-01 | 2.91% |
| 2005-07-02 | 3.26% |
| 2005-04-02 | 3.63% |
| 2004-12-31 | 3.57% |
| 2004-10-02 | 2.37% |
| 2004-07-03 | 0.81% |
| 2004-04-03 | 0.26% |
| 2003-12-31 | -0.43% |
| 2003-09-27 | 2.65% |
| 2003-06-28 | 4.62% |
