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 10.12% is 23% above its 5-year average of 8.21%, near the high end of its 5-year range (6.32%–10.27%).
As of the fiscal period ended Tuesday, June 30, 2026. 7.25% above its 12-month average of 9.44%.
Trailing-twelve-month return on invested capital at each fiscal quarter end; no daily interpolation. Q2 FY2026 (2026-06-30): 10.12%.
RETURN ON INVESTED CAPITAL (ROIC)
10.12%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
9.44%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
8.84%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
8.21%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
8.10%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
12.00%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
12.43%
CURRENT VS TTM AVG
+7.25%
CURRENT VS 3Y AVG
+14.47%
CURRENT VS 5Y AVG
+23.28%
CURRENT VS 10Y AVG
+24.94%
CURRENT VS 15Y AVG
-15.67%
CURRENT VS 20Y AVG
-18.56%
SECTOR MEDIAN · TECHNOLOGY
8.17%
median of 193 covered companies
CURRENT VS SECTOR MEDIAN
+23.87%
vs the sector median at left
International Business Machines Corporation
Market Cap
$226.06B
Return on Invested Capital (ROIC)
10.12%
TTM Avg
9.44%
3Y Avg
8.84%
5Y Avg
8.21%
Market Cap
$238.90B
Return on Invested Capital (ROIC)
18.81%
TTM Avg
15.57%
3Y Avg
22.12%
5Y Avg
25.71%
Market Cap
$238.93B
Return on Invested Capital (ROIC)
35.75%
TTM Avg
36.17%
3Y Avg
33.56%
5Y Avg
32.79%
Market Cap
$211.59B
Return on Invested Capital (ROIC)
-1.57%
TTM Avg
-2.75%
3Y Avg
-3.01%
5Y Avg
-3.90%
Market Cap
$242.93B
Return on Invested Capital (ROIC)
21.80%
TTM Avg
22.69%
3Y Avg
23.35%
5Y Avg
21.10%
Market Cap
$243.69B
Return on Invested Capital (ROIC)
13.02%
TTM Avg
8.86%
3Y Avg
7.92%
5Y Avg
8.43%
Market Cap
$205.81B
Return on Invested Capital (ROIC)
5.44%
TTM Avg
1.03%
3Y Avg
-0.05%
5Y Avg
-0.75%
Market Cap
$200.58B
Return on Invested Capital (ROIC)
15.10%
TTM Avg
15.01%
3Y Avg
15.20%
5Y Avg
14.59%
Market Cap
$199.97B
Return on Invested Capital (ROIC)
8.78%
TTM Avg
8.41%
3Y Avg
5.81%
5Y Avg
4.14%
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| International Business Machines Corporation (IBM) | $226.06B | 10.12% | 9.44% | 8.84% | 8.21% |
| Texas Instruments Incorporated (TXN)vs › | $238.90B | 18.81% | 15.57% | 22.12% | 25.71% |
| KLA Corporation (KLAC)vs › | $238.93B | 35.75% | 36.17% | 33.56% | 32.79% |
| CrowdStrike Holdings, Inc. (CRWD)vs › | $211.59B | -1.57% | -2.75% | -3.01% | -3.90% |
| Arista Networks, Inc. (ANET)vs › | $242.93B | 21.80% | 22.69% | 23.35% | 21.10% |
| SAP SE (SAP)vs › | $243.69B | 13.02% | 8.86% | 7.92% | 8.43% |
| Marvell Technology, Inc. (MRVL)vs › | $205.81B | 5.44% | 1.03% | -0.05% | -0.75% |
| Amphenol Corporation (APH)vs › | $200.58B | 15.10% | 15.01% | 15.20% | 14.59% |
| Salesforce, Inc. (CRM)vs › | $199.97B | 8.78% | 8.41% | 5.81% | 4.14% |
| Seagate Technology Holdings plc (STX)vs › | $198.65B | 51.40% | 51.40% | 30.73% | 23.51% |
ROIC
10.1%
ROE
31.1%
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 | 10.12% |
| 2026-03-31 | 10.27% |
| 2025-12-31 | 10.26% |
| 2025-09-30 | 7.99% |
| 2025-06-30 | 8.54% |
| 2025-03-31 | 8.17% |
| 2024-12-31 | 9.23% |
| 2024-09-30 | 9.32% |
| 2024-06-30 | 8.82% |
| 2024-03-31 | 8.45% |
| 2023-12-31 | 7.89% |
| 2023-09-30 | 7.63% |
| 2023-06-30 | 8.24% |
| 2023-03-31 | 7.86% |
| 2022-12-31 | 8.16% |
| 2022-09-30 | 7.58% |
| 2022-06-30 | 6.85% |
| 2022-03-31 | 6.32% |
| 2021-12-31 | 6.36% |
| 2021-09-30 | 6.80% |
| 2021-06-30 | 7.51% |
| 2021-03-31 | 7.83% |
| 2020-12-31 | 7.96% |
| 2020-09-30 | 7.97% |
| 2020-06-30 | 7.67% |
| 2020-03-31 | 7.84% |
| 2019-12-31 | 7.96% |
| 2019-09-30 | 6.59% |
| 2019-06-30 | 7.23% |
| 2019-03-31 | 9.49% |
| 2018-12-31 | 10.72% |
| 2018-09-30 | 7.51% |
| 2018-06-30 | 7.65% |
| 2018-03-31 | 7.29% |
| 2017-12-31 | 7.43% |
| 2017-09-30 | 13.28% |
| 2017-06-30 | 13.42% |
| 2017-03-31 | 13.86% |
| 2016-12-31 | 14.33% |
| 2016-09-30 | 14.38% |
| 2016-06-30 | 14.17% |
| 2016-03-31 | 14.93% |
| 2015-12-31 | 16.14% |
| 2015-09-30 | 16.19% |
| 2015-06-30 | 16.89% |
| 2015-03-31 | 18.24% |
| 2014-12-31 | 17.77% |
| 2014-09-30 | 18.57% |
| 2014-06-30 | 18.29% |
| 2014-03-31 | 17.88% |
| 2013-12-31 | 18.05% |
| 2013-09-30 | 19.82% |
| 2013-06-30 | 19.97% |
| 2013-03-31 | 20.25% |
| 2012-12-31 | 20.07% |
| 2012-09-30 | 18.46% |
| 2012-06-30 | 19.52% |
| 2012-03-31 | 18.99% |
| 2011-12-31 | 18.49% |
| 2011-09-30 | 18.71% |
| 2011-06-30 | 17.90% |
| 2011-03-31 | 17.46% |
| 2010-12-31 | 17.12% |
| 2010-09-30 | 17.00% |
| 2010-06-30 | 17.31% |
| 2010-03-31 | 16.67% |
| 2009-12-31 | 16.22% |
| 2009-09-30 | 16.16% |
| 2009-06-30 | 15.82% |
| 2009-03-31 | 15.69% |
| 2008-12-31 | 15.13% |
| 2008-09-30 | 14.67% |
| 2008-06-30 | 13.77% |
| 2008-03-31 | 12.40% |
| 2007-12-31 | 11.51% |
| 2007-09-30 | 10.24% |
| 2007-06-30 | 10.04% |
| 2007-03-31 | 9.88% |
| 2006-12-31 | 9.98% |
| 2006-09-30 | 8.78% |
| 2006-06-30 | 8.70% |
| 2006-03-31 | 7.69% |
| 2005-12-31 | 7.88% |
| 2005-09-30 | 8.17% |
| 2005-06-30 | 7.81% |
| 2005-03-31 | 9.05% |
| 2004-12-31 | 9.00% |
| 2004-09-30 | 9.10% |
| 2004-06-30 | 9.51% |
| 2004-03-31 | 9.54% |
| 2003-12-31 | 9.61% |
| 2003-09-30 | 8.83% |
| 2003-06-30 | 8.80% |
