ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. China Development Bank Financial Leasing Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 2.86%.
As of today (2026-07-09), China Development Bank Financial Leasing Co's WACC % is 2.37%. China Development Bank Financial Leasing Co's ROC % is 2.82% (calculated using TTM income statement data).
China Development Bank Financial Leasing 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.
China Development Bank Financial Leasing Co (HKSE:01606) 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, China Development Bank Financial Leasing Co's WACC % is 2.37%. China Development Bank Financial Leasing Co's ROC % is 2.82% (calculated using TTM income statement data).
China Development Bank Financial Leasing 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.
China Development Bank Financial Leasing Co ROC % Related Terms
China Development Bank Financial Leasing 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.
China Development Bank Financial Leasing Co ROC % Chart
China Development Bank Financial Leasing 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.
China Development Bank Financial Leasing Co (HKSE:01606) has a ROC % of 2.86% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on China Development Bank Financial Leasing Co and its competitors.
Is China Development Bank Financial Leasing Co's ROC % too high?
China Development Bank Financial Leasing Co's current ROC % is 2.86%. The Business Services industry median ROC % is 5.96. China Development Bank Financial Leasing Co's value of 2.86% is 52% below this industry median. Overall, China Development Bank Financial Leasing Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Development Bank Financial Leasing Co's ROC % compare to URI and SUNB?
China Development Bank Financial Leasing Co's ROC % of 2.86% can be compared against companies in the Business Services industry. The industry median ROC % is 5.96. China Development Bank Financial Leasing Co's value of 2.86% is 52% below 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 Business Services company?
The median ROC % among Business Services companies is 5.96, based on 1,074 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. China Development Bank Financial Leasing Co's current ROC % of 2.86% is 52% below 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 China Development Bank Financial Leasing Co and its competitors. For the Business Services industry, the median ROC % is 5.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Development Bank Financial Leasing Co's current ROC % is 2.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Development Bank Financial Leasing Co stock overvalued right now?
Based on GuruFocus' analysis, China Development Bank Financial Leasing Co (HKSE:01606) is currently considered Fairly Valued. The stock's GF Value™ is HK$1.40, compared to a current price of HK$1.31 — trading 6.4% below its estimated fair value. The current ROC % is 2.86% and 52% below the Business Services industry median of 5.96. China Development Bank Financial Leasing Co's overall GF Score™ is 83/100 with 6 warning signs 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 China Development Bank Financial Leasing Co (HKSE:01606), the current ROC % is 2.86% 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 China Development Bank Financial Leasing Co (HKSE:01606) Overvalued in 2026?
Based on GuruFocus' analysis, China Development Bank Financial Leasing Co stock appears to be undervalued.
The current stock price of HK$1.31 is trading 6.4% below its estimated GF Value™ of HK$1.40.
GuruFocus considers China Development Bank Financial Leasing Co to be Fairly Valued.
Key valuation signals for HKSE:01606:
ROC %: 2.86%
GF Value™: HK$1.40 vs. price of HK$1.31 (6.4% below fair value)
Industry Position: 52% below the Business Services median
No single metric tells the full story. See the HKSE:01606 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Development Bank Financial Leasing Co Business Description
China Development Bank Financial Leasing Co Ltd is engaged in providing financial and operating leasing services to customers in industries such as aviation, infrastructure, shipping, commercial vehicles, and construction machinery. The Group's operating business segments are: Aircraft leasing, Ship leasing, Energy leasing, High-end equipment leasing, Inclusive finance, and Others. The majority of its revenue is derived from the Airtcraft leasing segment, which is mainly engaged in the acquisition, leasing, management and disposal of commercial aircraft. The Group generates maximum revenue from the provision of operating leases.
83GF Score
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