Highest Return on Invested Capital
Which companies compound capital hardest
Updated August 16, 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 | IBKRInteractive Brokers Group, Inc.Investment - Banking & Investment Services | 116% | $1.1B |
| Investment - Banking & Investment Services — earns roughly 116% a year on the capital invested in the business, on $1.1B of net income. | |||
| 2 | MCKMcKesson CorporationMedical - Distribution | 115% | $4.7B |
| Medical - Distribution — earns roughly 115% a year on the capital invested in the business, on $4.7B of net income. | |||
| 3 | FTNTFortinet, Inc.Software - Infrastructure | 96% | $2.1B |
| Software - Infrastructure — earns roughly 96% a year on the capital invested in the business, on $2.1B of net income. | |||
| 4 | DPZDomino's Pizza, Inc.Restaurants | 85% | $587M |
| Restaurants — earns roughly 85% a year on the capital invested in the business, on $587M of net income. | |||
| 5 | 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. | |||
| 6 | APPAppLovin CorporationSoftware - Application | 69% | $3.9B |
| Software - Application — earns roughly 69% a year on the capital invested in the business, on $3.9B of net income. | |||
| 7 | NVDANVIDIA CorporationSemiconductors | 67% | $159.3B |
| Semiconductors — earns roughly 67% a year on the capital invested in the business, on $159.3B of net income. | |||
| 8 | AAPLApple Inc.Consumer Electronics | 67% | $128.8B |
| Consumer Electronics — earns roughly 67% a year on the capital invested in the business, on $128.8B of net income. | |||
| 9 | OTISOtis Worldwide CorporationIndustrial - Machinery | 64% | $1.5B |
| Industrial - Machinery — earns roughly 64% a year on the capital invested in the business, on $1.5B of net income. | |||
| 10 | FICOFair Isaac CorporationSoftware - Application | 64% | $786M |
| Software - Application — earns roughly 64% a year on the capital invested in the business, on $786M of net income. | |||
| 11 | STXSeagate Technology Holdings plcComputer Hardware | 62% | $3.2B |
| Computer Hardware — earns roughly 62% a year on the capital invested in the business, on $3.2B of net income. | |||
| 12 | CMGChipotle Mexican Grill, Inc.Restaurants | 57% | $1.4B |
| Restaurants — earns roughly 57% a year on the capital invested in the business, on $1.4B of net income. | |||
| 13 | WSMWilliams-Sonoma, Inc.Specialty Retail | 57% | $1.1B |
| Specialty Retail — earns roughly 57% a year on the capital invested in the business, on $1.1B of net income. | |||
| 14 | MAMastercard IncorporatedFinancial - Credit Services | 56% | $16.1B |
| Financial - Credit Services — earns roughly 56% a year on the capital invested in the business, on $16.1B of net income. | |||
| 15 | ORLYO'Reilly Automotive, Inc.Specialty Retail | 55% | $2.6B |
| Specialty Retail — earns roughly 55% a year on the capital invested in the business, on $2.6B of net income. | |||
| 16 | TPRTapestry, Inc.Luxury Goods | 51% | $1.5B |
| Luxury Goods — earns roughly 51% a year on the capital invested in the business, on $1.5B of net income. | |||
| 17 | YUMYum! Brands, Inc.Restaurants | 50% | $2.2B |
| Restaurants — earns roughly 50% a year on the capital invested in the business, on $2.2B of net income. | |||
| 18 | MUMicron Technology, Inc.Semiconductors | 48% | $50.6B |
| Semiconductors — earns roughly 48% a year on the capital invested in the business, on $50.6B of net income. | |||
| 19 | MTDMettler-Toledo International Inc.Medical - Diagnostics & Research | 46% | $897M |
| Medical - Diagnostics & Research — earns roughly 46% a year on the capital invested in the business, on $897M of net income. | |||
| 20 | AZOAutoZone, Inc.Specialty Retail | 45% | $2.4B |
| Specialty Retail — earns roughly 45% a year on the capital invested in the business, on $2.4B of net income. | |||
| 21 | LRCXLam Research CorporationSemiconductors | 45% | $7.3B |
| Semiconductors — earns roughly 45% a year on the capital invested in the business, on $7.3B of net income. | |||
| 22 | 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. | |||
| 23 | FIXComfort Systems USA, Inc.Engineering & Construction | 44% | $1.4B |
| Engineering & Construction — earns roughly 44% a year on the capital invested in the business, on $1.4B of net income. | |||
| 24 | TJXThe TJX Companies, Inc.Apparel - Retail | 43% | $5.8B |
| Apparel - Retail — earns roughly 43% a year on the capital invested in the business, on $5.8B of net income. | |||
| 25 | MOAltria Group, Inc.Tobacco | 43% | $7.9B |
| Tobacco — earns roughly 43% a year on the capital invested in the business, on $7.9B of net income. | |||