Alphabet Inc. (GOOGL) Return on Invested Capital (ROIC): 21.82%
Is Alphabet Inc.’s return on invested capital (ROIC) high or low?
Alphabet Inc.'s return on invested capital (ROIC) of 21.82% is in line with its 5-year average of 21.06%, around the middle of its 5-year range (13.05%–25.80%).
The return on invested capital (ROIC) for Alphabet Inc. (GOOGL) is 21.82% as of Tuesday, June 9, 2026. It is below its 12-month average by 8.36% (23.81%).
GOOGL Return on Invested Capital (ROIC) Chart
GOOGL Average Return on Invested Capital (ROIC) Chart
GOOGL Current vs Average Return on Invested Capital (ROIC) Chart
GOOGL Return on Invested Capital (ROIC) Metrics
RETURN ON INVESTED CAPITAL (ROIC)
21.82%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
23.81%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
22.79%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
21.06%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
16.67%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
15.71%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
15.77%
CURRENT VS TTM AVG
-8.36%
CURRENT VS 3Y AVG
-4.25%
CURRENT VS 5Y AVG
+3.58%
CURRENT VS 10Y AVG
+30.87%
CURRENT VS 15Y AVG
+38.92%
CURRENT VS 20Y AVG
+38.35%
GOOGL Competitors' Return on Invested Capital (ROIC)
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Alphabet Inc. (GOOGL) | — | 21.82% | 23.81% | 22.79% | 21.06% |
| Apple Inc. (AAPL) | $4.27T | 51.97% | 48.14% | 46.56% | 44.75% |
| Microsoft Corporation (MSFT) | $3.00T | 21.63% | 21.95% | 23.20% | 22.53% |
| Meta Platforms, Inc. (META) | $1.48T | 17.95% | 21.50% | 19.23% | 20.55% |
| Amazon.com, Inc. (AMZN) | $2.63T | 10.70% | 12.01% | 8.52% | 8.71% |
| Netflix, Inc. (NFLX) | $342.80B | 25.22% | 22.71% | 18.04% | 16.51% |
Capital Efficiency
ROIC
21.8%
ROE
31.8%
Alphabet Inc. Return on Invested Capital (ROIC) Formula & Definition
ROIC = NOPAT / Invested Capital
Return on invested capital measures the after-tax return a company earns on all capital (debt and equity) invested in the business.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Alphabet Inc. Return on Invested Capital (ROIC) FAQ
- What is the return on invested capital (ROIC) for Alphabet Inc. (GOOGL)?
- The return on invested capital (ROIC) for GOOGL stock is 21.82%.
- Is Alphabet Inc.'s return on invested capital (ROIC) high or low?
- Alphabet Inc.'s return on invested capital (ROIC) of 21.82% is in line with its 5-year average of 21.06%, around the middle of its 5-year range (13.05%–25.80%).
- What is the TTM average return on invested capital (ROIC) for Alphabet Inc. (GOOGL)?
- The TTM average return on invested capital (ROIC) for GOOGL stock is 23.81%.
- What is the 3Y average return on invested capital (ROIC) for Alphabet Inc. (GOOGL)?
- The 3Y average return on invested capital (ROIC) for GOOGL stock is 22.79%.
- What is the 5Y average return on invested capital (ROIC) for Alphabet Inc. (GOOGL)?
- The 5Y average return on invested capital (ROIC) for GOOGL stock is 21.06%.
- What is the 10Y average return on invested capital (ROIC) for Alphabet Inc. (GOOGL)?
- The 10Y average return on invested capital (ROIC) for GOOGL stock is 16.67%.
- What is the 15Y average return on invested capital (ROIC) for Alphabet Inc. (GOOGL)?
- The 15Y average return on invested capital (ROIC) for GOOGL stock is 15.71%.
- What is the 20Y average return on invested capital (ROIC) for Alphabet Inc. (GOOGL)?
- The 20Y average return on invested capital (ROIC) for GOOGL stock is 15.77%.
Alphabet Inc. Return on Invested Capital (ROIC) History
| DATE | RETURN ON INVESTED CAPITAL (ROIC) |
|---|---|
| 2025-12-31 | 21.82% |
| 2024-12-31 | 25.80% |
| 2023-12-31 | 22.44% |
| 2022-12-31 | 21.09% |
| 2021-12-31 | 22.19% |
| 2020-12-31 | 13.05% |
| 2019-12-31 | 12.79% |
| 2018-12-31 | 12.23% |
| 2017-12-31 | 7.04% |
| 2016-12-31 | 12.69% |
| 2015-12-31 | 12.26% |
| 2014-12-31 | 11.19% |
| 2013-12-31 | 13.01% |
| 2012-12-31 | 13.47% |
| 2011-12-31 | 14.30% |
| 2010-12-31 | 15.94% |
| 2009-12-31 | 17.13% |
| 2008-12-31 | 16.25% |
| 2007-12-31 | 16.17% |
| 2006-12-31 | 15.86% |
| 2005-12-31 | 14.49% |
| 2004-12-31 | 13.20% |
| 2003-12-31 | 16.18% |
| 2002-12-31 | 49.81% |
| 2001-12-31 | 0.00% |
| 2000-12-31 | 0.00% |
| 1999-12-31 | 0.00% |
Related Metrics
About Alphabet Inc.
Alphabet Inc. provides a diverse range of products and digital platforms to consumers across multiple global regions, including North and South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company's operations are organized into three primary divisions: Google Services, Google Cloud, and "Other Bets." The Google Services segment delivers core offerings such as its advertising solutions, the Android operating system, the Chrome browser, and various hardware. It also features popular applications like Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. This division further handles the sale of applications, in-app purchases, and digital content via the Google Play store, alongside marketing devices such as Fitbit wearables, Google Nest smart home products, Pixel smartphones, and other proprietary hardware. It also provides non-advertising services for YouTube. The Google Cloud segment offers a comprehensive suite of infrastructure, platform, and other cloud computing services for businesses. This includes Google Workspace, a collection of cloud-native collaboration tools for enterprises, featuring applications like Gmail, Docs, Drive, Calendar, and Meet, among other specialized services for corporate clients. Lastly, the "Other Bets" segment is engaged in developing and selling health technology and internet services. Established in 1998, Alphabet Inc. maintains its principal executive offices in Mountain View, California.
- Sector
- Communication Services
- Industry
- Internet Content & Information
- CEO
- Sundar Pichai