Loading chart...Here's the ROIC trend: Apple vs Alphabet (FY 2019–2025)

Apple has consistently delivered higher ROIC, expanding from ~32% in FY19 to a peak of ~57% in FY22, before moderating to the low 50s in recent years. Its asset-light, high-margin model drives exceptional returns on invested capital.

Alphabet started at ~16% in FY19 and improved steadily to ~25% by FY23, though it still trails Apple by a wide margin. The gap reflects Alphabet's heavier capital intensity (data centers, infrastructure) and lower margins relative to Apple's premium hardware/ecosystem model.

The key takeaway: both are high-quality compounders, but Apple's capital efficiency structurally outpaces Alphabet by roughly 2x.