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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 Bao Pharmaceuticals Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -38.20%.
As of today (2026-08-27), Shanghai Bao Pharmaceuticals Co's WACC % is 10.22%. Shanghai Bao Pharmaceuticals Co's ROC % is -38.53% (calculated using TTM income statement data).
Shanghai Bao Pharmaceuticals Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Shanghai Bao Pharmaceuticals Co (HKSE:02659) 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 Bao Pharmaceuticals Co's WACC % is 10.22%. Shanghai Bao Pharmaceuticals Co's ROC % is -38.53% (calculated using TTM income statement data).
Shanghai Bao Pharmaceuticals 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 Bao Pharmaceuticals Co ROC % Related Terms
Shanghai Bao Pharmaceuticals 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.
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.
Shanghai Bao Pharmaceuticals Co (HKSE:02659) has a ROC % of -38.20% 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 Bao Pharmaceuticals Co and its competitors.
Is Shanghai Bao Pharmaceuticals Co's ROC % too high?
Shanghai Bao Pharmaceuticals Co's current ROC % is -38.20%. Overall, Shanghai Bao Pharmaceuticals Co has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Shanghai Bao Pharmaceuticals Co's ROC % compare to VRTX and REGN?
Shanghai Bao Pharmaceuticals Co's ROC % of -38.20% 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 Shanghai Bao Pharmaceuticals Co and its competitors. Shanghai Bao Pharmaceuticals Co's current ROC % is -38.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Bao Pharmaceuticals Co stock overvalued right now?
Shanghai Bao Pharmaceuticals Co (HKSE:02659) has a current ROC % of -38.20%. The current ROC % is -38.20%. Shanghai Bao Pharmaceuticals Co's overall GF Score™ is 9/100 with 2 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 Bao Pharmaceuticals Co (HKSE:02659), the current ROC % is -38.20% 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 Bao Pharmaceuticals Co Ltd is a biotechnology company with an approved product and a diverse clinical pipeline, leveraging synthetic biology technology to develop and deliver recombinant biologic drugs in China, targeting conditions with limited treatment options and complex manufacturing challenges. The company has proprietary technology platforms, supported by its chassis cell engineering technology, that combine drug design and bioprocessing capabilities. It has production lines for finished dosage forms, including injectable solutions, lyophilized powder injections, and pre-filled syringes. The group has only one reportable operating segment, which is the research, development, and commercialisation of pharmaceutical products.
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