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 18.58% is 50% above its 5-year average of 12.36%, near the high end of its 5-year range (7.69%–18.58%).
As of the fiscal period ended Tuesday, June 30, 2026. 5.75% above its 12-month average of 17.57%.
Trailing-twelve-month return on invested capital at each fiscal quarter end; no daily interpolation. Q2 FY2026 (2026-06-30): 18.58%.
RETURN ON INVESTED CAPITAL (ROIC)
18.58%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
17.57%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
14.60%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
12.36%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
9.02%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
N/A
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
N/A
CURRENT VS TTM AVG
+5.75%
CURRENT VS 3Y AVG
+27.26%
CURRENT VS 5Y AVG
+50.33%
CURRENT VS 10Y AVG
+106.03%
CURRENT VS 15Y AVG
N/A
CURRENT VS 20Y AVG
N/A
SECTOR MEDIAN · INDUSTRIALS
9.55%
median of 154 covered companies
CURRENT VS SECTOR MEDIAN
+94.49%
vs the sector median at left
Howmet Aerospace Inc.
Market Cap
$91.89B
Return on Invested Capital (ROIC)
18.58%
TTM Avg
17.57%
3Y Avg
14.60%
5Y Avg
12.36%
Market Cap
$94.41B
Return on Invested Capital (ROIC)
19.89%
TTM Avg
19.84%
3Y Avg
17.77%
5Y Avg
15.20%
Market Cap
$95.52B
Return on Invested Capital (ROIC)
10.94%
TTM Avg
10.38%
3Y Avg
9.82%
5Y Avg
9.64%
Market Cap
$95.72B
Return on Invested Capital (ROIC)
8.49%
TTM Avg
7.59%
3Y Avg
7.41%
5Y Avg
7.19%
Market Cap
$96.01B
Return on Invested Capital (ROIC)
20.78%
TTM Avg
16.59%
3Y Avg
12.27%
5Y Avg
10.46%
Market Cap
$87.25B
Return on Invested Capital (ROIC)
8.99%
TTM Avg
9.30%
3Y Avg
10.17%
5Y Avg
9.93%
Market Cap
$85.60B
Return on Invested Capital (ROIC)
14.64%
TTM Avg
12.53%
3Y Avg
11.28%
5Y Avg
12.46%
Market Cap
$84.38B
Return on Invested Capital (ROIC)
9.01%
TTM Avg
8.59%
3Y Avg
9.20%
5Y Avg
8.88%
Market Cap
$84.12B
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 |
|---|---|---|---|---|---|
| Howmet Aerospace Inc. (HWM) | $91.89B | 18.58% | 17.57% | 14.60% | 12.36% |
| Trane Technologies plc (TT)vs › | $94.41B | 19.89% | 19.84% | 17.77% | 15.20% |
| General Dynamics Corporation (GD)vs › | $95.52B | 10.94% | 10.38% | 9.82% | 9.64% |
| Quanta Services, Inc. (PWR)vs › | $95.72B | 8.49% | 7.59% | 7.41% | 7.19% |
| Vertiv Holdings Co (VRT)vs › | $96.01B | 20.78% | 16.59% | 12.27% | 10.46% |
| CSX Corporation (CSX)vs › | $87.25B | 8.99% | 9.30% | 10.17% | 9.93% |
| 3M Company (MMM)vs › | $85.60B | 14.64% | 12.53% | 11.28% | 12.46% |
| Waste Management, Inc. (WM)vs › | $84.38B | 9.01% | 8.59% | 9.20% | 8.88% |
| United Parcel Service, Inc. (UPS)vs › | $84.12B | 8.99% | 11.29% | 13.45% | 14.09% |
| Emerson Electric Co. (EMR)vs › | $83.97B | 7.93% | 6.36% | 6.09% | 7.57% |
ROIC
18.6%
ROE
32.6%
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 | 18.58% |
| 2026-03-31 | 17.43% |
| 2025-12-31 | 18.19% |
| 2025-09-30 | 16.86% |
| 2025-06-30 | 16.80% |
| 2025-03-31 | 15.93% |
| 2024-12-31 | 15.50% |
| 2024-09-30 | 14.81% |
| 2024-06-30 | 12.99% |
| 2024-03-31 | 12.07% |
| 2023-12-31 | 11.04% |
| 2023-09-30 | 10.14% |
| 2023-06-30 | 9.50% |
| 2023-03-31 | 9.20% |
| 2022-12-31 | 9.12% |
| 2022-09-30 | 9.29% |
| 2022-06-30 | 9.00% |
| 2022-03-31 | 8.16% |
| 2021-12-31 | 7.69% |
| 2021-09-30 | 8.80% |
| 2021-06-30 | 8.50% |
| 2021-03-31 | 7.70% |
| 2020-12-31 | 8.30% |
| 2020-09-30 | 6.67% |
| 2020-06-30 | 5.45% |
| 2020-03-31 | 6.37% |
| 2019-12-31 | 7.52% |
| 2019-09-30 | 7.81% |
| 2019-06-30 | 8.24% |
| 2019-03-31 | 6.48% |
| 2018-12-31 | 5.93% |
| 2018-09-30 | 4.56% |
| 2018-06-30 | 4.48% |
| 2018-03-31 | 4.42% |
| 2017-12-31 | 4.31% |
| 2017-09-30 | 3.51% |
| 2017-06-30 | 3.97% |
| 2017-03-31 | 3.65% |
| 2016-12-31 | 3.60% |
| 2016-09-30 | 1.93% |
| 2016-06-30 | 5.30% |
| 2016-03-31 | 4.17% |
| 2015-12-31 | 0.95% |
| 2015-09-30 | 1.13% |
| 2015-06-30 | 1.52% |
| 2015-03-31 | 1.18% |
| 2014-12-31 | 0.33% |
