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Moody's MCO Return on invested capital

Return on invested capital at other companies

S&P Global logo
S&P GlobalSPGI
12.7%+2.6pp
Fair Isaac logo
Fair IsaacFICO
66.4%+13.8pp
MicroStrategy logo
MicroStrategyMSTR
5.8%

Other financials

Income statement

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Revenue$2.1B+8.1%
Gross profit$1.5B+8.0%
Operating income$922.0M+9.0%
Net income$661.0M+5.8%
EPS (diluted)$3.73+7.8%

Balance sheet

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Cash & equivalents$1.5B-31.3%
Total debt$7.3B+2.5%
Total equity$3.0B-19.1%
Total assets$14.7B-2.4%

Cash flow

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Operating cash flow$939.0M+24.0%
CapEx$95.0M+11.8%
Free cash flow$844.0M+25.6%

Valuation

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Market cap$79.69B-7.3%
Enterprise value$85.53B-5.9%
P/E31.9×-8.9×
P/S10.1×-1.8×

Profitability

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Gross margin74.4%+1.7pp
Operating margin43.5%+3.1pp
Net margin31.7%+2.5pp

Returns & leverage

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Return on equity74.5%+16.6pp
Debt / equity2.4×+0.5×
Current ratio1.2×-0.4×

Where this comes from

Calculated from Moody's’s reported figures.

Based on trailing twelve months.

The official record: Moody's’s 10-Q, filed April 23, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Moody's's return on invested capital?
Moody's (MCO) reported return on invested capital of 30.6% in Q1 2026.
How has Moody's's return on invested capital changed year-over-year?
Moody's's return on invested capital increased by 17.0% year-over-year, from 26.1% to 30.6%.
What is the long-term trend for Moody's's return on invested capital?
Over 4 years (2021 to 2025), Moody's's return on invested capital has grown at a -5.2% compound annual growth rate (CAGR), from 132.9% to 107.2%.
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.