Highest Return on Invested Capital
Which companies compound capital hardest
Updated June 18, 2026
Return on invested capital answers the question that matters most for a long-term owner: for every dollar the business has tied up in operations — plants, inventory, acquisitions, working capital — how much profit does it throw off each year? A company earning 30% on its capital while reinvesting heavily is a compounding machine; one earning less than its cost of capital is quietly destroying value no matter how fast it grows.
It’s the metric that separates great businesses from merely large ones. We cap the list to exclude a few names whose tiny capital bases produce uninterpretable figures; what’s left are the S&P 500’s genuine capital compounders.
| # | Stock | ROIC | Net income (TTM) |
|---|---|---|---|
| 1 | STXSeagate Technology Holdings plcComputer Hardware | 165% | $2.4B |
| Computer Hardware — earns roughly 165% a year on the capital invested in the business, on $2.4B of net income. | |||
| 2 | FTNTFortinet, Inc.Software - Infrastructure | 117% | $1.9B |
| Software - Infrastructure — earns roughly 117% a year on the capital invested in the business, on $1.9B of net income. | |||
| 3 | MCKMcKesson CorporationMedical - Distribution | 112% | $4.7B |
| Medical - Distribution — earns roughly 112% a year on the capital invested in the business, on $4.7B of net income. | |||
| 4 | OTISOtis Worldwide CorporationIndustrial - Machinery | 84% | $1.5B |
| Industrial - Machinery — earns roughly 84% a year on the capital invested in the business, on $1.5B of net income. | |||
| 5 | DPZDomino's Pizza, Inc.Restaurants | 79% | $587M |
| Restaurants — earns roughly 79% a year on the capital invested in the business, on $587M of net income. | |||
| 6 | BKNGBooking Holdings Inc.Travel Services | 77% | $6.0B |
| Travel Services — earns roughly 77% a year on the capital invested in the business, on $6.0B of net income. | |||
| 7 | APPAppLovin CorporationSoftware - Application | 64% | $3.9B |
| Software - Application — earns roughly 64% a year on the capital invested in the business, on $3.9B of net income. | |||
| 8 | NVDANVIDIA CorporationSemiconductors | 63% | $159.3B |
| Semiconductors — earns roughly 63% a year on the capital invested in the business, on $159.3B of net income. | |||
| 9 | MAMastercard IncorporatedFinancial - Credit Services | 62% | $15.4B |
| Financial - Credit Services — earns roughly 62% a year on the capital invested in the business, on $15.4B of net income. | |||
| 10 | AAPLApple Inc.Consumer Electronics | 61% | $122.1B |
| Consumer Electronics — earns roughly 61% a year on the capital invested in the business, on $122.1B of net income. | |||
| 11 | WSMWilliams-Sonoma, Inc.Specialty Retail | 60% | $1.1B |
| Specialty Retail — earns roughly 60% a year on the capital invested in the business, on $1.1B of net income. | |||
| 12 | FICOFair Isaac CorporationSoftware - Application | 58% | $750M |
| Software - Application — earns roughly 58% a year on the capital invested in the business, on $750M of net income. | |||
| 13 | CMGChipotle Mexican Grill, Inc.Restaurants | 56% | $1.4B |
| Restaurants — earns roughly 56% a year on the capital invested in the business, on $1.4B of net income. | |||
| 14 | ORLYO'Reilly Automotive, Inc.Specialty Retail | 50% | $2.6B |
| Specialty Retail — earns roughly 50% a year on the capital invested in the business, on $2.6B of net income. | |||
| 15 | TJXThe TJX Companies, Inc.Apparel - Retail | 45% | $5.8B |
| Apparel - Retail — earns roughly 45% a year on the capital invested in the business, on $5.8B of net income. | |||
| 16 | YUMYum! Brands, Inc.Restaurants | 45% | $1.7B |
| Restaurants — earns roughly 45% a year on the capital invested in the business, on $1.7B of net income. | |||
| 17 | AZOAutoZone, Inc.Specialty Retail | 44% | $2.4B |
| Specialty Retail — earns roughly 44% a year on the capital invested in the business, on $2.4B of net income. | |||
| 18 | AMPAmeriprise Financial, Inc.Asset Management | 44% | $3.8B |
| Asset Management — earns roughly 44% a year on the capital invested in the business, on $3.8B of net income. | |||
| 19 | IDXXIDEXX Laboratories, Inc.Medical - Diagnostics & Research | 44% | $1.1B |
| Medical - Diagnostics & Research — earns roughly 44% a year on the capital invested in the business, on $1.1B of net income. | |||
| 20 | FIXComfort Systems USA, Inc.Engineering & Construction | 43% | $1.2B |
| Engineering & Construction — earns roughly 43% a year on the capital invested in the business, on $1.2B of net income. | |||
| 21 | CLColgate-Palmolive CompanyHousehold & Personal Products | 43% | $2.1B |
| Household & Personal Products — earns roughly 43% a year on the capital invested in the business, on $2.1B of net income. | |||
| 22 | SBUXStarbucks CorporationRestaurants | 43% | $1.5B |
| Restaurants — earns roughly 43% a year on the capital invested in the business, on $1.5B of net income. | |||
| 23 | MTDMettler-Toledo International Inc.Medical - Diagnostics & Research | 41% | $866M |
| Medical - Diagnostics & Research — earns roughly 41% a year on the capital invested in the business, on $866M of net income. | |||
| 24 | LRCXLam Research CorporationSemiconductors | 41% | $6.7B |
| Semiconductors — earns roughly 41% a year on the capital invested in the business, on $6.7B of net income. | |||
| 25 | MOAltria Group, Inc.Tobacco | 41% | $8.0B |
| Tobacco — earns roughly 41% a year on the capital invested in the business, on $8.0B of net income. | |||