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 13.49% is 30% below its 5-year average of 19.17%, near the low end of its 5-year range (13.49%–25.86%).
As of the fiscal period ended Tuesday, June 30, 2026. 11.63% below its 12-month average of 15.27%.
Trailing-twelve-month return on invested capital at each fiscal quarter end; no daily interpolation.
RETURN ON INVESTED CAPITAL (ROIC)
13.49%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
15.27%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
17.18%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
19.17%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
16.63%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
15.08%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
14.26%
CURRENT VS TTM AVG
-11.63%
CURRENT VS 3Y AVG
-21.46%
CURRENT VS 5Y AVG
-29.63%
CURRENT VS 10Y AVG
-18.84%
CURRENT VS 15Y AVG
-10.52%
CURRENT VS 20Y AVG
-5.38%
SECTOR MEDIAN · INDUSTRIALS
9.55%
median of 146 covered companies
CURRENT VS SECTOR MEDIAN
+41.22%
vs the sector median at left
Watsco, Inc.
Market Cap
$12.89B
Return on Invested Capital (ROIC)
13.49%
TTM Avg
15.27%
3Y Avg
17.18%
5Y Avg
19.17%
Market Cap
$12.89B
Return on Invested Capital (ROIC)
18.82%
TTM Avg
17.29%
3Y Avg
20.01%
5Y Avg
20.48%
Market Cap
$12.51B
Return on Invested Capital (ROIC)
17.08%
TTM Avg
15.92%
3Y Avg
15.93%
5Y Avg
14.44%
Market Cap
$13.52B
Return on Invested Capital (ROIC)
23.32%
TTM Avg
29.84%
3Y Avg
31.02%
5Y Avg
31.54%
Market Cap
$13.58B
Return on Invested Capital (ROIC)
16.20%
TTM Avg
16.74%
3Y Avg
16.59%
5Y Avg
16.64%
Market Cap
$12.07B
Return on Invested Capital (ROIC)
10.04%
TTM Avg
11.46%
3Y Avg
8.25%
5Y Avg
7.23%
Market Cap
$11.71B
Return on Invested Capital (ROIC)
5.32%
TTM Avg
4.81%
3Y Avg
5.62%
5Y Avg
6.51%
Market Cap
$14.16B
Return on Invested Capital (ROIC)
7.34%
TTM Avg
7.33%
3Y Avg
6.69%
5Y Avg
6.34%
Market Cap
$14.17B
Return on Invested Capital (ROIC)
6.20%
TTM Avg
6.54%
3Y Avg
8.07%
5Y Avg
7.15%
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Watsco, Inc. (WSO) | $12.89B | 13.49% | 15.27% | 17.18% | 19.17% |
| Graco Inc. (GGG)vs › | $12.89B | 18.82% | 17.29% | 20.01% | 20.48% |
| Applied Industrial Technologies, Inc. (AIT)vs › | $12.51B | 17.08% | 15.92% | 15.93% | 14.44% |
| Lennox International Inc. (LII)vs › | $13.52B | 23.32% | 29.84% | 31.02% | 31.54% |
| Allegion plc (ALLE)vs › | $13.58B | 16.20% | 16.74% | 16.59% | 16.64% |
| Crane Company (CR)vs › | $12.07B | 10.04% | 11.46% | 8.25% | 7.23% |
| Huntington Ingalls Industries, Inc. (HII)vs › | $11.71B | 5.32% | 4.81% | 5.62% | 6.51% |
| Textron Inc. (TXT)vs › | $14.16B | 7.34% | 7.33% | 6.69% | 6.34% |
| CNH Industrial N.V. (CNH)vs › | $14.17B | 6.20% | 6.54% | 8.07% | 7.15% |
| Generac Holdings Inc. (GNRC)vs › | $11.61B | 6.95% | 7.60% | 8.15% | 10.34% |
ROIC
13.5%
ROE
15.9%
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 | 13.49% |
| 2026-03-31 | 14.86% |
| 2025-12-31 | 15.23% |
| 2025-09-30 | 16.06% |
| 2025-06-30 | 16.71% |
| 2025-03-31 | 17.20% |
| 2024-12-31 | 17.45% |
| 2024-09-30 | 16.91% |
| 2024-06-30 | 17.74% |
| 2024-03-31 | 18.30% |
| 2023-12-31 | 21.15% |
| 2023-09-30 | 22.17% |
| 2023-06-30 | 21.08% |
| 2023-03-31 | 23.85% |
| 2022-12-31 | 25.86% |
| 2022-09-30 | 23.56% |
| 2022-06-30 | 22.11% |
| 2022-03-31 | 20.88% |
| 2021-12-31 | 20.44% |
| 2021-09-30 | 20.06% |
| 2021-06-30 | 17.58% |
| 2021-03-31 | 16.56% |
| 2020-12-31 | 15.67% |
| 2020-09-30 | 15.34% |
| 2020-06-30 | 14.37% |
| 2020-03-31 | 14.14% |
| 2019-12-31 | 13.82% |
| 2019-09-30 | 13.68% |
| 2019-06-30 | 14.22% |
| 2019-03-31 | 15.09% |
| 2018-12-31 | 16.56% |
| 2018-09-30 | 16.49% |
| 2018-06-30 | 15.91% |
| 2018-03-31 | 15.90% |
| 2017-12-31 | 16.07% |
| 2017-09-30 | 14.72% |
| 2017-06-30 | 14.33% |
| 2017-03-31 | 15.30% |
| 2016-12-31 | 15.29% |
| 2016-09-30 | 14.71% |
| 2016-06-30 | 14.23% |
| 2016-03-31 | 15.23% |
| 2015-12-31 | 15.17% |
| 2015-09-30 | 14.31% |
| 2015-06-30 | 13.29% |
| 2015-03-31 | 14.31% |
| 2014-12-31 | 14.11% |
| 2014-09-30 | 13.12% |
| 2014-06-30 | 12.49% |
| 2014-03-31 | 13.70% |
| 2013-12-31 | 13.45% |
| 2013-09-30 | 12.46% |
| 2013-06-30 | 11.64% |
| 2013-03-31 | 11.90% |
| 2012-12-31 | 11.50% |
| 2012-09-30 | 10.86% |
| 2012-06-30 | 10.06% |
| 2012-03-31 | 13.20% |
| 2011-12-31 | 13.23% |
| 2011-09-30 | 11.39% |
| 2011-06-30 | 11.55% |
| 2011-03-31 | 12.59% |
| 2010-12-31 | 11.75% |
| 2010-09-30 | 11.04% |
| 2010-06-30 | 9.57% |
| 2010-03-31 | 6.27% |
| 2009-12-31 | 5.70% |
| 2009-09-30 | 4.84% |
| 2009-06-30 | 7.02% |
| 2009-03-31 | 8.75% |
| 2008-12-31 | 10.13% |
| 2008-09-30 | 10.10% |
| 2008-06-30 | 11.18% |
| 2008-03-31 | 10.97% |
| 2007-12-31 | 11.22% |
| 2007-09-30 | 11.02% |
| 2007-06-30 | 13.27% |
| 2007-03-31 | 14.52% |
| 2006-12-31 | 14.96% |
| 2006-09-30 | 14.80% |
| 2006-06-30 | 14.49% |
| 2006-03-31 | 14.09% |
| 2005-12-31 | 14.15% |
| 2005-09-30 | 12.30% |
| 2005-06-30 | 11.27% |
| 2005-03-31 | 10.74% |
| 2004-12-31 | 10.79% |
| 2004-09-30 | 10.48% |
| 2004-06-30 | 10.30% |
| 2004-03-31 | 9.47% |
| 2003-12-31 | 8.98% |
| 2003-09-30 | 8.45% |
| 2003-06-30 | 8.02% |
