American Express Co
NYSE:AXP
ROIC
Return on Invested Capital
ROIC, or Return on Invested Capital, tells you how good a company is at turning its invested money into profits. In simple terms, ROIC shows how many dollars of profit the company makes for each dollar it has invested. A higher ROIC usually means the company is using its money wisely to grow and make more profits, which is a good sign for investors.
ROIC Across Competitors
| Country | Company | Market Cap | ROIC | ||
|---|---|---|---|---|---|
| US |
|
American Express Co
NYSE:AXP
|
210.8B USD |
5%
|
|
| US |
|
Capital One Financial Corp
NYSE:COF
|
126.2B USD |
0%
|
|
| IN |
|
Bajaj Finance Ltd
NSE:BAJFINANCE
|
5.8T INR |
6%
|
|
| US |
|
Discover Financial Services
NYSE:DFS
|
50.4B USD |
0%
|
|
| US |
|
Synchrony Financial
NYSE:SYF
|
22.4B USD |
0%
|
|
| KZ |
K
|
Kaspi.kz AO
NASDAQ:KSPI
|
16.2B USD |
0%
|
|
| IN |
|
Cholamandalam Investment and Finance Company Ltd
NSE:CHOLAFIN
|
1.3T INR |
3%
|
|
| US |
|
SoFi Technologies Inc
NASDAQ:SOFI
|
15.6B USD |
0%
|
|
| IN |
|
Shriram Finance Ltd
NSE:SHRIRAMFIN
|
1.3T INR |
5%
|
|
| US |
S
|
Santander Consumer USA Holdings Inc
F:77S
|
11.3B EUR |
6%
|
|
| IN |
|
Muthoot Finance Ltd
NSE:MUTHOOTFIN
|
982.1B INR |
6%
|
American Express Co
Glance View
In the bustling heart of the financial service industry sits American Express Co., a titan with a storied legacy stretching back to 1850. Originally founded as an express mail business, it has evolved significantly over the decades, now commanding a substantial presence in the world of financial services. Central to the company’s operations is its unique closed-loop payment network, a rare system that allows it to control every stage of the transaction process. This network facilitates not only payment processing but also integrates issuing credit cards and acquiring transactions directly with merchants. American Express leverages this model to gather detailed customer data, refining its services to create tailored offerings—transforming ordinary transactions into personalized experiences for card members. How American Express generates revenue is distinguished by its diverse stream. Primarily, it earns through discount revenue, which is a fee charged to merchants for accepting its cards, typically higher than that charged by competitors. Additionally, the company reaps financial rewards from annual card member fees, interest on outstanding balances, and a variety of travel and lifestyle services designed to enhance card loyalty. By combining premium pricing with rewards programs that appeal to affluent customers, American Express has created a strong brand association with exclusivity and prestige. This equation of high-value clientele, proprietary technological infrastructure, and premium service offerings underscores American Express's profitability and underpins its resilient business model in the often volatile financial sector.
See Also
ROIC, or Return on Invested Capital, tells you how good a company is at turning its invested money into profits. In simple terms, ROIC shows how many dollars of profit the company makes for each dollar it has invested. A higher ROIC usually means the company is using its money wisely to grow and make more profits, which is a good sign for investors.
Based on American Express Co's most recent financial statements, the company has ROIC of 4.9%.
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