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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Shanghai Zhida Technology Development Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -21.43%.
Shanghai Zhida Technology Development Co (HKSE:02650) 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, Shanghai Zhida Technology Development Co's WACC % is 9.83%. Shanghai Zhida Technology Development Co's ROC % is -21.43% (calculated using TTM income statement data).
Shanghai Zhida Technology Development Co 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.
Shanghai Zhida Technology Development Co ROC % Related Terms
Shanghai Zhida Technology Development 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.
Shanghai Zhida Technology Development Co ROC % Chart
Shanghai Zhida Technology Development Co Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
ROC %
-2.31
-11.41
-35.37
-21.43
Shanghai Zhida Technology Development Co Semi-Annual Data
Note:
The Operating Income data used here is one times the 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.
Shanghai Zhida Technology Development Co (HKSE:02650) has a ROC % of -21.43% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Shanghai Zhida Technology Development Co and its competitors.
Is Shanghai Zhida Technology Development Co's ROC % too high?
Shanghai Zhida Technology Development Co's current ROC % is -21.43%. Overall, Shanghai Zhida Technology Development Co has a GF Score™ of 7/100, reflecting its overall financial health beyond just this single metric.
How does Shanghai Zhida Technology Development Co's ROC % compare to APH and GLW?
Shanghai Zhida Technology Development Co's ROC % of -21.43% can be compared against companies in the Hardware industry. The industry median ROC % is 4.29. 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 Hardware company?
The median ROC % among Hardware companies is 4.29, based on 2,443 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 Shanghai Zhida Technology Development Co and its competitors. For the Hardware industry, the median ROC % is 4.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Zhida Technology Development Co's current ROC % is -21.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Zhida Technology Development Co stock overvalued right now?
Shanghai Zhida Technology Development Co (HKSE:02650) has a current ROC % of -21.43%. The current ROC % is -21.43%. Shanghai Zhida Technology Development Co's overall GF Score™ is 7/100 with 3 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 Shanghai Zhida Technology Development Co (HKSE:02650), the current ROC % is -21.43% 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.
Shanghai Zhida Technology Development Co Ltd is engaged in providing new energy vehicle home smart charging and green digital energy. The Group is engaged in the provision of the following goods and services: Production, research and development and sales of EV chargers and related parts; and EV chargers installation services, after-sales services and others. Geographically, company operates in China and Overseas.
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