What are the implications of a declining ROIC for the Basic materials sector?

The ROIC for the Financials sector declined 82 basis points since the end of 2019 but remains well above the lows of the Financial Crisis. It seems to have fared better than the Basic materials, Consumer cyclicals, and Energy sectors, which have seen more significant declines. However, it has not performed as well as the Healthcare sector, which only declined 14 basis points since the end of 2019.

The ROIC for the Energy sector was hit hardest of all sectors during the COVID-19 pandemic that coincided with increased production from Saudi Arabia and Russia. It has suffered more compared to other sectors like Financials, Healthcare, and Utilities which have seen lesser declines.

The ROIC for the Consumer cyclicals sector was hit hard by the COVID-19 pandemic and has fallen to its lowest level since mid-2011. It seems to have been affected more severely compared to sectors like Healthcare and Financials, but not as severely as the Energy and Industrials sectors.