ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Hangzhou Jiuyuan Genetic Biopharmaceutical Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 8.45%.
As of today (2026-06-27), Hangzhou Jiuyuan Genetic Biopharmaceutical Co's WACC % is 9.58%. Hangzhou Jiuyuan Genetic Biopharmaceutical Co's ROC % is 11.92% (calculated using TTM income statement data).
Hangzhou Jiuyuan Genetic Biopharmaceutical 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.
Hangzhou Jiuyuan Genetic Biopharmaceutical Co (HKSE:02566) 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, Hangzhou Jiuyuan Genetic Biopharmaceutical Co's WACC % is 9.58%. Hangzhou Jiuyuan Genetic Biopharmaceutical Co's ROC % is 11.92% (calculated using TTM income statement data).
Hangzhou Jiuyuan Genetic Biopharmaceutical 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.
Hangzhou Jiuyuan Genetic Biopharmaceutical Co ROC % Related Terms
Hangzhou Jiuyuan Genetic Biopharmaceutical 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.
Hangzhou Jiuyuan Genetic Biopharmaceutical Co ROC % Chart
Hangzhou Jiuyuan Genetic Biopharmaceutical Co Annual Data
Trend
Dec21
Dec22
Dec23
Dec24
Dec25
ROC %
15.18
6.69
13.51
14.18
12.48
Hangzhou Jiuyuan Genetic Biopharmaceutical Co Semi-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.
Hangzhou Jiuyuan Genetic Biopharmaceutical Co (HKSE:02566) has a ROC % of 8.45% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Hangzhou Jiuyuan Genetic Biopharmaceutical Co and its competitors.
Is Hangzhou Jiuyuan Genetic Biopharmaceutical Co's ROC % too high?
Hangzhou Jiuyuan Genetic Biopharmaceutical Co's current ROC % is 8.45%. Overall, Hangzhou Jiuyuan Genetic Biopharmaceutical Co has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Hangzhou Jiuyuan Genetic Biopharmaceutical Co's ROC % compare to VRTX and REGN?
Hangzhou Jiuyuan Genetic Biopharmaceutical Co's ROC % of 8.45% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROC % depends on the Biotechnology industry context. 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 Hangzhou Jiuyuan Genetic Biopharmaceutical Co and its competitors. Hangzhou Jiuyuan Genetic Biopharmaceutical Co's current ROC % is 8.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou Jiuyuan Genetic Biopharmaceutical Co stock overvalued right now?
Hangzhou Jiuyuan Genetic Biopharmaceutical Co (HKSE:02566) has a current ROC % of 8.45%. The current ROC % is 8.45%. Hangzhou Jiuyuan Genetic Biopharmaceutical Co's overall GF Score™ is 20/100 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 Hangzhou Jiuyuan Genetic Biopharmaceutical Co (HKSE:02566), the current ROC % is 8.45% 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.
Hangzhou Jiuyuan Genetic Biopharmaceutical Co Business Description
Hangzhou Jiuyuan Genetic Biopharmaceutical Co Ltd is a biopharmaceutical company in China. It is engaged in the research & development, manufacturing, and commercialization of biopharmaceutical products and medical devices. The company focuses on four large and fast-growing therapeutic areas: orthopedics, metabolic diseases, oncology, and hematology. Centered around these therapeutic areas, it has built a diversified product portfolio comprising several marketed products, such as Jilifen, Jijufen, Jiouting, Yinuojia, Guyoudao, etc., and has several product candidates under development, such as JY54, JY23, JY47, JY56, JY29-2, etc., targeting various indications. Geographically, the company generates maximum revenue from the Chinese Mainland, and the rest from other countries.
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