K2 Asset Management Holdings (ASX:KAM) ROC %: -66.04% (As of Dec. 2025)

What is K2 Asset Management Holdings ROC %?

K2 Asset Management Holdings ASX:KAM -10.17% ROC % is -66.04% as of Dec. 2025. The stock has 3 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. K2 Asset Management Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -66.04%.

As of today (2026-06-25), K2 Asset Management Holdings's WACC % is 9.62%. K2 Asset Management Holdings's ROC % is -91.18% (calculated using TTM income statement data). K2 Asset Management Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

K2 Asset Management Holdings (ASX:KAM) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, K2 Asset Management Holdings's WACC % is 9.62%. K2 Asset Management Holdings's ROC % is -91.18% (calculated using TTM income statement data). K2 Asset Management Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

K2 Asset Management Holdings ROC % Related Terms

K2 Asset Management Holdings ROC % Historical Data

* Premium members only.

The historical data trend for K2 Asset Management Holdings's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

K2 Asset Management Holdings ROC % Chart

K2 Asset Management Holdings Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Jun25

ROC %

Get a 7-Day Free Trial

0.14

-88.06

-173.63

-103.90

-69.41

K2 Asset Management Holdings Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
ROC %	Get a 7-Day Free Trial															-23.29	-152.88	-21.07	-116.79	-66.04

K2 Asset Management Holdings ROC % Calculation

K2 Asset Management Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2025 is calculated as:

	ROC % (A: Jun. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2024 )	+	Invested Capital (A: Jun. 2025 ))	/ count )
=	-2.023 * ( 1 - 0% )	/	( (2.867	+	2.962)	/ 2 )
=	-2.023	/	2.9145
=	-69.41 %

where

	Invested Capital		(A: Jun. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	10.908	-	0.422	-	( 8.592	-	max(0, 1.822	-	9.441	+	8.592	))
=	2.867

	Invested Capital		(A: Jun. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	11.365	-	0.443	-	( 8.603	-	max(0, 2.125	-	10.085	+	8.603	))
=	2.962

K2 Asset Management Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2025 is calculated as:

	ROC % (Q: Dec. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2025 )	+	Invested Capital (Q: Dec. 2025 ))	/ count )
=	-1.974 * ( 1 - 0% )	/	( (2.962	+	3.016)	/ 2 )
=	-1.974	/	2.989
=	-66.04 %

where

	Invested Capital		(Q: Jun. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	11.365	-	0.443	-	( 8.603	-	max(0, 2.125	-	10.085	+	8.603	))
=	2.962

	Invested Capital		(Q: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	9.845	-	0.413	-	( 7.223	-	max(0, 2.287	-	8.703	+	7.223	))
=	3.016

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -66.04% mean?

K2 Asset Management Holdings (ASX:KAM) has a ROC % of -66.04% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on K2 Asset Management Holdings and its competitors.

Is K2 Asset Management Holdings' ROC % too high?

K2 Asset Management Holdings' current ROC % is -66.04%.

How does K2 Asset Management Holdings' ROC % compare to BLK and BX?

K2 Asset Management Holdings' ROC % of -66.04% can be compared against companies in the Asset Management industry. The industry median ROC % is 1.18. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROC % for an Asset Management company?

The median ROC % among Asset Management companies is 1.18, based on 709 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROC % mean?

A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on K2 Asset Management Holdings and its competitors. For the Asset Management industry, the median ROC % is 1.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. K2 Asset Management Holdings's current ROC % is -66.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is K2 Asset Management Holdings stock overvalued right now?

Based on GuruFocus' analysis, K2 Asset Management Holdings (ASX:KAM) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.09, compared to a current price of A$0.05 — trading 41.1% below its estimated fair value. The current ROC % is -66.04%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROC % calculated?

ROC % is calculated from a company's financial statements. For K2 Asset Management Holdings (ASX:KAM), the current ROC % is -66.04% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

K2 Asset Management Holdings Business Description

Industry Financial Services Asset Management

Comparable Companies ASX:ECP ASX:CD1 ASX:SOR ASX:IAM ASX:APL ASX:BPH ASX:UWC ASX:CD2 ASX:GC1 ASX:ARC BLK BX OSTO:INVE A TSX:BN KKR TSX:BAM APO STT OSTO:EQT AMP

Address 101 Collins Street, Level 44, Melbourne, VIC, AUS, 3000

Website https://www.k2am.com.au

K2 Asset Management Holdings Ltd is a fund holding company specialising in managing funds for retail, wholesale, and institutional investors. The firm invests in the public equity markets across the globe. It manages equity mutual funds for its clients. The company gets a majority of its revenue from management and performance fees.