ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Elife Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was 5.36%.
As of today (2026-07-13), Elife Holdings's WACC % is 0.66%. Elife Holdings's ROC % is -22.81% (calculated using TTM income statement data).
Elife Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Elife Holdings (HKSE:00223) 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, Elife Holdings's WACC % is 0.66%. Elife Holdings's ROC % is -22.81% (calculated using TTM income statement data).
Elife 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.
Elife Holdings ROC % Related Terms
Elife Holdings ROC % Historical Data
* Premium members only.
The historical data trend for Elife 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.
Note:
The Operating Income data used here is two times the semi-annual (Sep. 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.
Elife Holdings (HKSE:00223) has a ROC % of 5.36% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Elife Holdings and its competitors.
Is Elife Holdings' ROC % too high?
Elife Holdings' current ROC % is 5.36%. The Media - Diversified industry median ROC % is 1.39. Elife Holdings' value of 5.36% is 285.6% above this industry median.
How does Elife Holdings' ROC % compare to APP and OMC?
Elife Holdings' ROC % of 5.36% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.39. Elife Holdings' value of 5.36% is 285.6% 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 Media - Diversified company?
The median ROC % among Media - Diversified companies is 1.39, based on 1,007 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. Elife Holdings's current ROC % of 5.36% is 285.6% 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 Elife Holdings and its competitors. For the Media - Diversified industry, the median ROC % is 1.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elife Holdings's current ROC % is 5.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elife Holdings stock overvalued right now?
Based on GuruFocus' analysis, Elife Holdings (HKSE:00223) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.05, compared to a current price of HK$0.09 — trading 74% above its estimated fair value. The current ROC % is 5.36% and 285.6% above the Media - Diversified industry median of 1.39. 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 Elife Holdings (HKSE:00223), the current ROC % is 5.36% as of Sep. 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.
Elife Holdings Ltd is an investment holding company. The company is principally engaged in the supply chain business for branded goods and consumer products. Its core activities include brand digitalisation services, such as brand management, brand promotion, and brand supply chain. Additionally, the company engages in the supply chain, sales and marketing, and brand building of daily cleaning, anti-epidemic and licensed branded consumer goods. The three operating reportable segments are: i) Supply Chain Business, ii) Daily Cleaning, Anti-epidemic and Other Consumable Products Business and Licensed Branded Consumer goods. The majority of revenue is generated from the Supply Chain Business segment. Geographically, it derives a majority of its revenue from the PRC.
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