JPMorgan Chase JPM Return on invested capital

Return on invested capital at other companies

American ExpressAXP

49.1%-10.0pp

Fifth Third BankFITB

12.9%-5.5pp

U.S. BancorpUSB

21.1%-6.5pp

Huntington BancsharesHBAN

19.5%-5.5pp

Bank of AmericaBAC

25.3%-6.1pp

Wells Fargo & CompanyWFC

20.5%-0.7pp

Questions, answered.

What does return on invested capital mean?

The after-tax return the business earns on all the capital — debt and equity — invested in it.

How do you interpret return on invested capital?

The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.

How does return on invested capital compare across companies?

Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.