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 8.89% is 11% below its 5-year average of 10.02%, near the low end of its 5-year range (8.70%–11.81%).
As of the fiscal period ended Tuesday, June 30, 2026. 1.18% above its 12-month average of 8.78%.
Trailing-twelve-month return on invested capital at each fiscal quarter end; no daily interpolation. Q2 FY2026 (2026-06-30): 8.89%.
RETURN ON INVESTED CAPITAL (ROIC)
8.89%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
8.78%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
9.82%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
10.02%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
10.44%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
10.35%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
10.11%
CURRENT VS TTM AVG
+1.18%
CURRENT VS 3Y AVG
-9.50%
CURRENT VS 5Y AVG
-11.30%
CURRENT VS 10Y AVG
-14.91%
CURRENT VS 15Y AVG
-14.16%
CURRENT VS 20Y AVG
-12.09%
SECTOR MEDIAN · INDUSTRIALS
9.55%
median of 154 covered companies
CURRENT VS SECTOR MEDIAN
-7.01%
vs the sector median at left
Canadian National Railway Company
Market Cap
$73.15B
Return on Invested Capital (ROIC)
8.89%
TTM Avg
8.78%
3Y Avg
9.82%
5Y Avg
10.02%
Market Cap
$72.53B
Return on Invested Capital (ROIC)
9.97%
TTM Avg
9.50%
3Y Avg
8.59%
5Y Avg
9.56%
Market Cap
$72.45B
Return on Invested Capital (ROIC)
10.95%
TTM Avg
12.63%
3Y Avg
10.01%
5Y Avg
10.48%
Market Cap
$70.30B
Return on Invested Capital (ROIC)
7.33%
TTM Avg
7.38%
3Y Avg
7.64%
5Y Avg
7.88%
Market Cap
$76.40B
Return on Invested Capital (ROIC)
5.02%
TTM Avg
4.89%
3Y Avg
4.83%
5Y Avg
5.73%
Market Cap
$67.63B
Return on Invested Capital (ROIC)
5.92%
TTM Avg
6.18%
3Y Avg
6.03%
5Y Avg
6.34%
Market Cap
$78.92B
Return on Invested Capital (ROIC)
24.71%
TTM Avg
25.90%
3Y Avg
25.08%
5Y Avg
23.03%
Market Cap
$67.37B
Return on Invested Capital (ROIC)
6.63%
TTM Avg
9.09%
3Y Avg
9.81%
5Y Avg
9.63%
Market Cap
$79.80B
Return on Invested Capital (ROIC)
8.99%
TTM Avg
11.29%
3Y Avg
13.45%
5Y Avg
14.09%
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Canadian National Railway Company (CNI) | $73.15B | 8.89% | 8.78% | 9.82% | 10.02% |
| Northrop Grumman Corporation (NOC)vs › | $72.53B | 9.97% | 9.50% | 8.59% | 9.56% |
| Cummins Inc. (CMI)vs › | $72.45B | 10.95% | 12.63% | 10.01% | 10.48% |
| Norfolk Southern Corporation (NSC)vs › | $70.30B | 7.33% | 7.38% | 7.64% | 7.88% |
| Canadian Pacific Kansas City Ltd. (CP)vs › | $76.40B | 5.02% | 4.89% | 4.83% | 5.73% |
| FedEx Corporation (FDX)vs › | $67.63B | 5.92% | 6.18% | 6.03% | 6.34% |
| Illinois Tool Works Inc. (ITW)vs › | $78.92B | 24.71% | 25.90% | 25.08% | 23.03% |
| Honeywell International Inc. (HON)vs › | $67.37B | 6.63% | 9.09% | 9.81% | 9.63% |
| United Parcel Service, Inc. (UPS)vs › | $79.80B | 8.99% | 11.29% | 13.45% | 14.09% |
| Cintas Corporation (CTAS)vs › | $80.00B | 23.53% | 23.31% | 21.46% | 19.94% |
ROIC
8.9%
ROE
22.3%
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 | 8.89% |
| 2026-03-31 | 8.72% |
| 2025-12-31 | 8.79% |
| 2025-09-30 | 8.82% |
| 2025-06-30 | 8.70% |
| 2025-03-31 | 8.99% |
| 2024-12-31 | 9.14% |
| 2024-09-30 | 10.91% |
| 2024-06-30 | 11.07% |
| 2024-03-31 | 11.18% |
| 2023-12-31 | 11.34% |
| 2023-09-30 | 10.26% |
| 2023-06-30 | 10.83% |
| 2023-03-31 | 11.38% |
| 2022-12-31 | 11.06% |
| 2022-09-30 | 10.77% |
| 2022-06-30 | 9.84% |
| 2022-03-31 | 9.25% |
| 2021-12-31 | 9.50% |
| 2021-09-30 | 11.81% |
| 2021-06-30 | 9.14% |
| 2021-03-31 | 8.36% |
| 2020-12-31 | 8.40% |
| 2020-09-30 | 8.26% |
| 2020-06-30 | 8.90% |
| 2020-03-31 | 10.92% |
| 2019-12-31 | 10.35% |
| 2019-09-30 | 10.75% |
| 2019-06-30 | 10.83% |
| 2019-03-31 | 10.60% |
| 2018-12-31 | 11.17% |
| 2018-09-30 | 13.95% |
| 2018-06-30 | 14.22% |
| 2018-03-31 | 14.06% |
| 2017-12-31 | 14.62% |
| 2017-09-30 | 10.82% |
| 2017-06-30 | 11.28% |
| 2017-03-31 | 11.19% |
| 2016-12-31 | 11.31% |
| 2016-09-30 | 10.91% |
| 2016-06-30 | 11.04% |
| 2016-03-31 | 11.30% |
| 2015-12-31 | 11.59% |
| 2015-09-30 | 11.57% |
| 2015-06-30 | 11.59% |
| 2015-03-31 | 12.24% |
| 2014-12-31 | 11.64% |
| 2014-09-30 | 10.85% |
| 2014-06-30 | 10.36% |
| 2014-03-31 | 10.13% |
| 2013-12-31 | 10.03% |
| 2013-09-30 | 10.70% |
| 2013-06-30 | 10.92% |
| 2013-03-31 | 10.54% |
| 2012-12-31 | 10.73% |
| 2012-09-30 | 10.58% |
| 2012-06-30 | 10.49% |
| 2012-03-31 | 10.19% |
| 2011-12-31 | 10.05% |
| 2011-09-30 | 9.83% |
| 2011-06-30 | 9.24% |
| 2011-03-31 | 9.05% |
| 2010-12-31 | 9.02% |
| 2010-09-30 | 8.98% |
| 2010-06-30 | 8.84% |
| 2010-03-31 | 8.01% |
| 2009-12-31 | 7.73% |
| 2009-09-30 | 7.14% |
| 2009-06-30 | 7.89% |
| 2009-03-31 | 8.82% |
| 2008-12-31 | 9.55% |
| 2008-09-30 | 10.12% |
| 2008-06-30 | 9.76% |
| 2008-03-31 | 10.10% |
| 2007-12-31 | 9.38% |
| 2007-09-30 | 8.69% |
| 2007-06-30 | 8.99% |
| 2007-03-31 | 10.47% |
| 2006-12-31 | 10.74% |
| 2006-09-30 | 10.51% |
| 2006-06-30 | 10.58% |
| 2006-03-31 | 9.09% |
| 2005-12-31 | 8.74% |
| 2005-09-30 | 9.86% |
| 2005-06-30 | 9.11% |
| 2005-03-31 | 8.43% |
| 2004-12-31 | 6.71% |
| 2004-09-30 | 8.31% |
| 2004-06-30 | 7.99% |
| 2004-03-31 | 7.54% |
| 2003-12-31 | 5.92% |
| 2003-10-20 | 5.78% |
| 2003-06-30 | 5.49% |
