ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Jilin Province Huinan Changlong Bio-pharmacy Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 9.43%.
As of today (2026-07-05), Jilin Province Huinan Changlong Bio-pharmacy Co's WACC % is 4.54%. Jilin Province Huinan Changlong Bio-pharmacy Co's ROC % is 11.05% (calculated using TTM income statement data).
Jilin Province Huinan Changlong Bio-pharmacy Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Jilin Province Huinan Changlong Bio-pharmacy Co (FRA:JIL) 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, Jilin Province Huinan Changlong Bio-pharmacy Co's WACC % is 4.54%. Jilin Province Huinan Changlong Bio-pharmacy Co's ROC % is 11.05% (calculated using TTM income statement data).
Jilin Province Huinan Changlong Bio-pharmacy Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Jilin Province Huinan Changlong Bio-pharmacy Co ROC % Related Terms
Jilin Province Huinan Changlong Bio-pharmacy Co ROC % Historical Data
* 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.
Jilin Province Huinan Changlong Bio-pharmacy Co ROC % Chart
Jilin Province Huinan Changlong Bio-pharmacy Co Annual Data
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%.
* 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.
Jilin Province Huinan Changlong Bio-pharmacy Co (FRA:JIL) has a ROC % of 9.43% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Jilin Province Huinan Changlong Bio-pharmacy Co and its competitors.
Is Jilin Province Huinan Changlong Bio-pharmacy Co's ROC % too high?
Jilin Province Huinan Changlong Bio-pharmacy Co's current ROC % is 9.43%. The Drug Manufacturers industry median ROC % is 4.48. Jilin Province Huinan Changlong Bio-pharmacy Co's value of 9.43% is 110.5% above this industry median. Overall, Jilin Province Huinan Changlong Bio-pharmacy Co has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Jilin Province Huinan Changlong Bio-pharmacy Co's ROC % compare to ZTS and UTHR?
Jilin Province Huinan Changlong Bio-pharmacy Co's ROC % of 9.43% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.48. Jilin Province Huinan Changlong Bio-pharmacy Co's value of 9.43% is 110.5% above this benchmark. 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 Drug Manufacturers company?
The median ROC % among Drug Manufacturers companies is 4.48, based on 983 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. Jilin Province Huinan Changlong Bio-pharmacy Co's current ROC % of 9.43% is 110.5% above the industry median. 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 Jilin Province Huinan Changlong Bio-pharmacy Co and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jilin Province Huinan Changlong Bio-pharmacy Co's current ROC % is 9.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jilin Province Huinan Changlong Bio-pharmacy Co stock overvalued right now?
Jilin Province Huinan Changlong Bio-pharmacy Co (FRA:JIL) has a current ROC % of 9.43%. The stock's GF Value™ is €0.18, compared to a current price of €0.25 — trading 37.8% above its estimated fair value. The current ROC % is 9.43% and 110.5% above the Drug Manufacturers industry median of 4.48. Jilin Province Huinan Changlong Bio-pharmacy Co's overall GF Score™ is 81/100 with 1 warning sign to review. 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 Jilin Province Huinan Changlong Bio-pharmacy Co (FRA:JIL), the current ROC % is 9.43% 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.
Is Jilin Province Huinan Changlong Bio-pharmacy Co (FRA:JIL) Overvalued in 2026?
Based on GuruFocus' analysis, Jilin Province Huinan Changlong Bio-pharmacy Co stock appears to be overvalued.
The current stock price of €0.25 is trading 37.8% above its estimated GF Value™ of €0.18.
Key valuation signals for FRA:JIL:
ROC %: 9.43%
GF Value™: €0.18 vs. price of €0.25 (37.8% above fair value)
Industry Position: 110.5% above the Drug Manufacturers median
No single metric tells the full story. See the FRA:JIL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jilin Province Huinan Changlong Bio-pharmacy Co Business Description
Jilin Province Huinan Changlong Bio-pharmacy Co Ltd is principally engaged in the manufacture and distribution of Chinese medicines and pharmaceutical products in the PRC under the brand names of Changlong and Qing Tong. The company has only one business segment. It generates revenue from the Sales of Chinese medicines and pharmaceutical products. Geographically, it derives its entire revenue from the PRC.
81GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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