Basis: Latest reported fiscal year. 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 19.98% is in line with its 5-year average of 21.19%, around the middle of its 5-year range (15.57%–23.79%).
As of the fiscal period ended Wednesday, December 31, 2025. 5.29% below its 12-month average of 21.09%.
Annual fiscal-year return on invested capital; no daily interpolation.
RETURN ON INVESTED CAPITAL (ROIC)
19.98%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
21.09%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
22.36%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
21.19%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
21.85%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
22.70%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
21.26%
CURRENT VS TTM AVG
-5.29%
CURRENT VS 3Y AVG
-10.62%
CURRENT VS 5Y AVG
-5.71%
CURRENT VS 10Y AVG
-8.58%
CURRENT VS 15Y AVG
-11.98%
CURRENT VS 20Y AVG
-6.01%
SECTOR MEDIAN · CONSUMER CYCLICAL
10.97%
median of 92 covered companies
CURRENT VS SECTOR MEDIAN
+82.05%
vs the sector median at left
Hermes International Societe en commandite par actions Unsponsored ADR
Market Cap
$190.25B
Return on Invested Capital (ROIC)
19.98%
TTM Avg
21.09%
3Y Avg
22.36%
5Y Avg
21.19%
Market Cap
$184.77B
Return on Invested Capital (ROIC)
17.85%
TTM Avg
17.90%
3Y Avg
17.47%
5Y Avg
16.44%
Market Cap
$156.96B
Return on Invested Capital (ROIC)
71.23%
TTM Avg
47.48%
3Y Avg
38.26%
5Y Avg
26.91%
Market Cap
$148.25B
Return on Invested Capital (ROIC)
24.37%
TTM Avg
22.94%
3Y Avg
22.04%
5Y Avg
18.45%
Market Cap
$256.86B
Return on Invested Capital (ROIC)
9.55%
TTM Avg
10.13%
3Y Avg
11.92%
5Y Avg
10.90%
Market Cap
$122.28B
Return on Invested Capital (ROIC)
10.00%
TTM Avg
13.23%
3Y Avg
16.04%
5Y Avg
14.19%
Market Cap
$120.55B
Return on Invested Capital (ROIC)
18.36%
TTM Avg
23.32%
3Y Avg
22.85%
5Y Avg
14.25%
Market Cap
$115.92B
Return on Invested Capital (ROIC)
21.02%
TTM Avg
24.13%
3Y Avg
26.29%
5Y Avg
26.80%
Market Cap
$109.44B
Return on Invested Capital (ROIC)
20.55%
TTM Avg
19.05%
3Y Avg
18.39%
5Y Avg
2.11%
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Hermes International Societe en commandite par actions Unsponsored ADR (HESAY) | $190.25B | 19.98% | 21.09% | 22.36% | 21.19% |
| McDonald's Corporation (MCD)vs › | $184.77B | 17.85% | 17.90% | 17.47% | 16.44% |
| Booking Holdings Inc. (BKNG)vs › | $156.96B | 71.23% | 47.48% | 38.26% | 26.91% |
| The TJX Companies, Inc. (TJX)vs › | $148.25B | 24.37% | 22.94% | 22.04% | 18.45% |
| LVMH Moët Hennessy - Louis Vuitton, Société Européenne (LVMUY)vs › | $256.86B | 9.55% | 10.13% | 11.92% | 10.90% |
| Starbucks Corporation (SBUX)vs › | $122.28B | 10.00% | 13.23% | 16.04% | 14.19% |
| PDD Holdings Inc. (PDD)vs › | $120.55B | 18.36% | 23.32% | 22.85% | 14.25% |
| Lowe's Companies, Inc. (LOW)vs › | $115.92B | 21.02% | 24.13% | 26.29% | 26.80% |
| Airbnb, Inc. (ABNB)vs › | $109.44B | 20.55% | 19.05% | 18.39% | 2.11% |
| BYD Company Limited (BYDDY)vs › | $104.48B | 5.19% | 8.93% | 10.48% | 8.33% |
ROIC
20.0%
ROE
24.0%
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) |
|---|---|
| 2025-12-31 | 19.98% |
| 2024-12-31 | 22.21% |
| 2023-12-31 | 23.79% |
| 2022-12-31 | 23.44% |
| 2021-12-31 | 22.15% |
| 2020-12-31 | 15.57% |
| 2019-12-31 | 20.11% |
| 2018-12-31 | 21.06% |
| 2017-12-31 | 23.36% |
| 2016-12-31 | 24.03% |
| 2015-12-31 | 24.70% |
| 2014-12-31 | 23.43% |
| 2013-12-31 | 26.40% |
| 2012-12-31 | 29.87% |
| 2011-12-31 | 24.04% |
| 2010-12-31 | 19.10% |
| 2009-12-31 | 15.80% |
| 2008-12-31 | 16.55% |
| 2007-12-31 | 17.36% |
| 2006-12-31 | 17.69% |
| 2005-12-31 | 15.79% |
| 2004-12-31 | 14.26% |
| 2003-12-31 | 16.33% |
| 2002-12-31 | 17.00% |
| 2001-12-31 | 17.58% |
