LPL Financial Holdings Inc. ROIC

ROIC of LPLA for past 10 years: annual, quarterly and twelve month trailing (TTM) including ROIC growth rates and interactive chart. Return on invested capital (ROIC) is a calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. Calculated as Net Operating Profit After Tax or EBIT*(1-tax rate) divided by average invested capital. Invested capital is calculated as equity plus long-term and short-term debt minus cash and short-term investments. ROIC is often compared to the Weighted average cost of capital (WACC). If it's above it, it is said the company is creating value, if it's below it's destroying it. A company with after tax operating profit of $10 million and invested capital of $50 million will have a ROIC of 20%.

Highlights and Quick Summary

  • Annual ROIC for 2020 was 21.75% (a -12.65% decrease from previous year)
  • Annual ROIC for 2019 was 24.9% (a 4.53% increase from previous year)
  • Annual ROIC for 2018 was 23.82% (a 40.95% increase from previous year)
  • Twelve month ROIC ending March 30, 2021 was 19.69% (a -9.47% decrease compared to previous quarter)
  • Twelve month trailing ROIC decreased by -14.02% year-over-year
Trailing ROIC for the last four month:
30 Mar '21 30 Dec '20 29 Sep '20 29 Jun '20
19.69% 21.75% 21.12% 22.9%
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Historical ROIC of LPL Financial Holdings Inc.

Most recent ROICof LPLA including historical data for past 10 years.

Interactive Chart of ROIC of LPL Financial Holdings Inc.

LPL Financial Holdings Inc. ROIC for the past 10 Years (both Annual and Quarterly)

Year Q1 Q2 Q3 Q4 Fiscal Year
2020 21.75%
2019 24.9%
2018 23.82%
2017 16.9%
2016 15.99%
2015 14.43%
2014 13.6%
2013 13.71%
2012 14.32%
2011 14.03%
2010 1.4%

Business Profile of LPL Financial Holdings Inc.

Sector: Financial Services
Industry: Capital Markets
LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. Its brokerage offerings include variable and fixed annuities, mutual funds, equities, retirement and education savings plans, fixed income, and insurance, as well as alternative investments, such as non-traded real estate investment trusts and business development companies. The company also provides advisory platforms that provide access to mutual funds, exchange-traded funds, stocks, bonds, certain option strategies, unit investment trusts, and institutional money managers and no-load multi-manager variable annuities. In addition, it offers money market programs; and retirement solutions for commission-and fee-based services that allow advisors to provide brokerage services, consultation, and advice to retirement plan sponsors. Further, the company provides other services comprising tools and services that enable advisors to maintain and grow their practices; trust, investment management oversight, and custodial services to trusts for estates and families, as well as insurance brokerage general agency services; and technology products, such as proposal generation, investment analytics, and portfolio modeling. The company was formerly known as LPL Investment Holdings Inc. and changed its name to LPL Financial Holdings Inc. in June 2012. LPL Financial Holdings Inc. was founded in 1989 and is based in San Diego, California.