ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Bit Brother's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was -109.06%.
As of today (2026-06-24), Bit Brother's WACC % is 0.00%. Bit Brother's ROC % is 0.00% (calculated using TTM income statement data).
Bit Brother earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Bit Brother (OTCPK:BETSF) 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, Bit Brother's WACC % is 0.00%. Bit Brother's ROC % is 0.00% (calculated using TTM income statement data).
Bit Brother 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.
Bit Brother ROC % Related Terms
Bit Brother ROC % Historical Data
* Premium members only.
The historical data trend for Bit Brother'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.
Note:
The Operating Income data used here is two times the semi-annual (Jun. 2023) data.
The tax rate is limited to between 0% and 100%.
* 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.
Bit Brother (BETSF) has a ROC % of -109.06% as of Jun. 2023. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Bit Brother and its competitors.
Is Bit Brother's ROC % too high?
Bit Brother's current ROC % is -109.06%. Overall, Bit Brother has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Bit Brother's ROC % compare to BTCS and MIGI?
Bit Brother's ROC % of -109.06% can be compared against companies in the Capital Markets industry. The industry median ROC % is 1.23. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Capital Markets company?
The median ROC % among Capital Markets companies is 1.23, based on 694 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 Bit Brother and its competitors. For the Capital Markets industry, the median ROC % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bit Brother's current ROC % is -109.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bit Brother stock overvalued right now?
Bit Brother (BETSF) has a current ROC % of -109.06%. The current ROC % is -109.06%. Bit Brother's overall GF Score™ is 16/100. 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 Bit Brother (BETSF), the current ROC % is -109.06% as of Jun. 2023. 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.
Bit Brother Ltd formerly Urban Tea Inc through its subsidiaries operates in two business segments, Tea shop chains and block chain and digital asset mining. Through Tea shop chains the company is engaged in specialty tea product distribution and retail business. The company offers trendy tea drinks, light meals, and pastries through its stores. Through its Blockchain technology and digital asset mining business, the company is engaged in research and development of a digital currency wallet, the integrated operation and management of supercomputer servers, and financial services, targeting both individual and institutional users. The majority of the revenue for the company is generated from its Tea shop chains.
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