ROIC (Return on Invested Capital) measures how effectively a company generates profits from its invested capital. It’s one of the most important quality metrics — a consistently high ROIC often signals a durable competitive advantage, or “moat.” This month, we spotlight the S&P 500 stocks with the best capital efficiency.
Top stocks by ROIC
| Rank | Company | Sector | Price | ROIC |
|---|---|---|---|---|
| 1. AAPL | Apple Inc. | Technology | $258.30 | 71.2% |
| 2. MSFT | Microsoft Corporation | Technology | $432.60 | 38.4% |
| 3. NVDA | NVIDIA Corporation | Technology | $185.75 | 68.5% |
| 4. V | Visa Inc. | Financial Services | $325.40 | 34.8% |
| 5. MA | Mastercard Incorporated | Financial Services | $558.20 | 32.1% |
| 6. AVGO | Broadcom Inc. | Technology | $218.50 | 29.6% |
| 7. COST | Costco Wholesale Corporation | Consumer Defensive | $982.30 | 27.3% |
| 8. NKE | NIKE Inc. | Consumer Cyclical | $71.40 | 25.8% |
| 9. INTU | Intuit Inc. | Technology | $612.90 | 24.5% |
| 10. ADP | Automatic Data Processing | Industrials | $305.70 | 23.9% |
What is ROIC?
ROIC is calculated by dividing a company’s net operating profit after tax (NOPAT) by its total invested capital (equity plus debt). It tells you how many dollars of profit the company generates for every dollar of capital invested in the business.
Stock Analyzer scores ROIC as follows:
| Score | ROIC | What it means |
|---|---|---|
| A | 15%+ | Excellent capital efficiency |
| B | 10% – 15% | Above average |
| C | 5% – 10% | Moderate |
| D | 0% – 5% | Below average |
| E | Below 0% | Destroying value |
Read the full explanation of ROIC.
What these numbers tell us
The top of this list is dominated by asset-light technology and payment companies — businesses that can generate enormous profits without tying up much capital. Apple’s 71.2% ROIC means it generates $0.71 in profit for every dollar of invested capital, a staggering level of efficiency driven by its brand power and ecosystem lock-in.
Payment networks like Visa and Mastercard consistently appear on ROIC leaderboards because they operate toll-booth businesses with minimal capital requirements. Costco is the standout non-tech name, proving that even a low-margin retailer can achieve exceptional ROIC through operational excellence and massive inventory turnover.
Warren Buffett has long argued that ROIC above 15% sustained over many years is the clearest sign of a competitive moat. Every company on this list clears that bar comfortably.
Check any stock’s ROIC
Search for any ticker on Stock Analyzer to see its ROIC alongside 18 other fundamental metrics. Free on the App Store.