International Business Machines Corporation (IBM) Return on Invested Capital (ROIC): 8.57%
Is International Business Machines Corporation’s return on invested capital (ROIC) high or low?
International Business Machines Corporation's return on invested capital (ROIC) of 8.57% is 18% above its 5-year average of 7.28%, near the high end of its 5-year range (3.75%–9.17%).
The return on invested capital (ROIC) for International Business Machines Corporation (IBM) is 8.57% as of Wednesday, June 10, 2026. It is below its 12-month average by 3.38% (8.87%).
IBM Return on Invested Capital (ROIC) Chart
IBM Average Return on Invested Capital (ROIC) Chart
IBM Current vs Average Return on Invested Capital (ROIC) Chart
IBM Return on Invested Capital (ROIC) Metrics
RETURN ON INVESTED CAPITAL (ROIC)
8.57%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
8.87%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
8.41%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
7.28%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
9.09%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
12.39%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
12.39%
CURRENT VS TTM AVG
-3.38%
CURRENT VS 3Y AVG
+1.90%
CURRENT VS 5Y AVG
+17.69%
CURRENT VS 10Y AVG
-5.74%
CURRENT VS 15Y AVG
-30.83%
CURRENT VS 20Y AVG
-30.82%
IBM Competitors' Return on Invested Capital (ROIC)
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| International Business Machines Corporation (IBM) | — | 8.57% | 8.87% | 8.41% | 7.28% |
| Texas Instruments Incorporated (TXN) | $257.37B | 16.46% | 15.57% | 22.12% | 25.67% |
| KLA Corporation (KLAC) | $279.96B | 38.11% | 32.67% | 33.86% | 30.57% |
| Marvell Technology, Inc. (MRVL) | $223.92B | 5.98% | 1.05% | -0.75% | -1.12% |
| Palantir Technologies Inc. (PLTR) | $303.24B | 17.95% | 11.73% | 5.20% | -8.29% |
| QUALCOMM Incorporated (QCOM) | $202.82B | 13.15% | 17.25% | 21.91% | 22.63% |
| Analog Devices, Inc. (ADI) | $191.81B | 5.42% | 4.73% | 5.66% | 5.29% |
| Arm Holdings plc American Depositary Shares (ARM) | $328.47B | 7.31% | 8.79% | 7.17% | 6.68% |
| Amphenol Corporation (APH) | $184.89B | 15.12% | 15.01% | 15.20% | 14.59% |
| Seagate Technology Holdings plc (STX) | $182.47B | 34.14% | 20.39% | 16.53% | 18.43% |
Capital Efficiency
ROIC
8.6%
ROE
32.6%
International Business Machines Corporation 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
International Business Machines Corporation Return on Invested Capital (ROIC) FAQ
- What is the return on invested capital (ROIC) for International Business Machines Corporation (IBM)?
- The return on invested capital (ROIC) for IBM stock is 8.57%.
- Is International Business Machines Corporation's return on invested capital (ROIC) high or low?
- International Business Machines Corporation's return on invested capital (ROIC) of 8.57% is 18% above its 5-year average of 7.28%, near the high end of its 5-year range (3.75%–9.17%).
- What is the TTM average return on invested capital (ROIC) for International Business Machines Corporation (IBM)?
- The TTM average return on invested capital (ROIC) for IBM stock is 8.87%.
- What is the 3Y average return on invested capital (ROIC) for International Business Machines Corporation (IBM)?
- The 3Y average return on invested capital (ROIC) for IBM stock is 8.41%.
- What is the 5Y average return on invested capital (ROIC) for International Business Machines Corporation (IBM)?
- The 5Y average return on invested capital (ROIC) for IBM stock is 7.28%.
- What is the 10Y average return on invested capital (ROIC) for International Business Machines Corporation (IBM)?
- The 10Y average return on invested capital (ROIC) for IBM stock is 9.09%.
- What is the 15Y average return on invested capital (ROIC) for International Business Machines Corporation (IBM)?
- The 15Y average return on invested capital (ROIC) for IBM stock is 12.39%.
- What is the 20Y average return on invested capital (ROIC) for International Business Machines Corporation (IBM)?
- The 20Y average return on invested capital (ROIC) for IBM stock is 12.39%.
International Business Machines Corporation Return on Invested Capital (ROIC) History
| DATE | RETURN ON INVESTED CAPITAL (ROIC) |
|---|---|
| 2025-12-31 | 8.57% |
| 2024-12-31 | 9.17% |
| 2023-12-31 | 7.84% |
| 2022-12-31 | 8.06% |
| 2021-12-31 | 6.30% |
| 2020-12-31 | 3.75% |
| 2019-12-31 | 6.00% |
| 2018-12-31 | 10.66% |
| 2017-12-31 | 6.99% |
| 2016-12-31 | 15.94% |
| 2015-12-31 | 16.73% |
| 2014-12-31 | 19.63% |
| 2013-12-31 | 19.29% |
| 2012-12-31 | 20.45% |
| 2011-12-31 | 19.99% |
| 2010-12-31 | 18.87% |
| 2009-12-31 | 16.31% |
| 2008-12-31 | 15.02% |
| 2007-12-31 | 11.00% |
| 2006-12-31 | 11.71% |
| 2005-12-31 | 7.88% |
| 2004-12-31 | 8.72% |
| 2003-12-31 | 8.22% |
| 2002-12-31 | 7.09% |
| 2001-12-31 | 10.89% |
| 2000-12-31 | 13.14% |
| 1999-12-31 | 12.59% |
| 1998-12-31 | 10.15% |
| 1997-12-31 | 10.03% |
| 1996-12-31 | 6.39% |
Related Metrics
About International Business Machines Corporation
International Business Machines Corporation (IBM) delivers comprehensive technology solutions and services across the globe. The company's operations are structured into four primary segments: Software, Consulting, Infrastructure, and Financing. The Software division provides hybrid cloud platforms and a range of software offerings, including Red Hat's enterprise open-source solutions. It also develops software for business automation, AIOps and management, integration, and application servers, in addition to data and artificial intelligence tools. This segment further supplies security software and services for threat, data, and identity management, and offers critical transaction processing software that supports essential on-premise workloads for industries such as banking, airlines, and retail. The Consulting arm delivers business transformation services, which encompass strategy development, business process design and operational improvements, data and analytics insights, and system integration. It additionally provides technology consulting and specialized application and cloud platform services. IBM's Infrastructure segment offers both on-premises and cloud-based server and storage solutions, specifically tailored for clients' crucial and regulated operations. It also extends support and solutions for hybrid cloud infrastructure, alongside remanufacturing and remarketing services for used equipment. The Financing segment provides various financial services, such as leasing, installment payment plans, loan financing, and short-term working capital solutions. Originally established in 1911 as the Computing-Tabulating-Recording Co., the company is now known as International Business Machines Corporation and maintains its headquarters in Armonk, New York.
- Sector
- Technology
- Industry
- Information Technology Services
- CEO
- Arvind Krishna