I'll analyze Nvidia's ROIC (Return on Invested Capital) trend. Let me load the necessary financial data.

Loading chart...Nvidia ROIC Trend (FY22–FY26)

ROIC = NOPAT / Invested Capital, where NOPAT = Operating Income × (1 − 15% effective tax) and Invested Capital = Equity + Total Debt − Cash & Short-term Investments.

Answer: Yes, ROIC is declining from its FY25 peak. After surging from 8.9% (FY23) to a peak of 77.4% (FY25), Nvidia's ROIC is forecast to ease to ~66.9% in FY26 — a decline of roughly 10 percentage points.

The drop isn't a profitability issue — operating income is still growing rapidly (+60% YoY). It's a capital deployment story: invested capital is growing faster than profits because Nvidia is reinvesting heavily (rising debt, expanding balance sheet), which mechanically dilutes returns. Even at 67%, however, ROIC remains exceptionally high versus any reasonable cost of capital.

Loading chart...The chart above shows Nvidia's operating income and invested capital from FY22 to FY26E, both in $B.

Operating income has grown from $10B (FY22) to a projected $130B (FY26E) — a roughly 13x increase. Invested capital has expanded more modestly, from $47B to $166B (~3.5x), but the gap is widening: in FY25–26, invested capital is scaling up at a faster rate than operating income, which is the driver behind the recent ROIC compression.