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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 %. Impression Dahongpao Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 13.91%.
As of today (2026-08-13), Impression Dahongpao Co's WACC % is 8.83%. Impression Dahongpao Co's ROC % is 10.46% (calculated using TTM income statement data).
Impression Dahongpao 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.
Impression Dahongpao Co (HKSE:02695) 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, Impression Dahongpao Co's WACC % is 8.83%. Impression Dahongpao Co's ROC % is 10.46% (calculated using TTM income statement data).
Impression Dahongpao 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.
* 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.
Impression Dahongpao Co (HKSE:02695) has a ROC % of 13.91% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Impression Dahongpao Co and its competitors.
Is Impression Dahongpao Co's ROC % too high?
Impression Dahongpao Co's current ROC % is 13.91%. The Travel & Leisure industry median ROC % is 3.76. Impression Dahongpao Co's value of 13.91% is 270.4% above this industry median. Overall, Impression Dahongpao Co has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Impression Dahongpao Co's ROC % compare to AS and HAS?
Impression Dahongpao Co's ROC % of 13.91% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.76. Impression Dahongpao Co's value of 13.91% is 270.4% 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 Travel & Leisure company?
The median ROC % among Travel & Leisure companies is 3.76, based on 834 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. Impression Dahongpao Co's current ROC % of 13.91% is 270.4% 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 Impression Dahongpao Co and its competitors. For the Travel & Leisure industry, the median ROC % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Impression Dahongpao Co's current ROC % is 13.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Impression Dahongpao Co stock overvalued right now?
Impression Dahongpao Co (HKSE:02695) has a current ROC % of 13.91%. The current ROC % is 13.91% and 270.4% above the Travel & Leisure industry median of 3.76. Impression Dahongpao Co's overall GF Score™ is 19/100 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 Impression Dahongpao Co (HKSE:02695), the current ROC % is 13.91% 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.
Impression Dahongpao Co Ltd is a cultural tourism service provider company based in China. It operates in three main business segments: shows and performance services, Impression Cultural Tourism Town business, and Chatang hotel business. The majority of the company's revenue is generated from the shows and performance services segment, which includes its three main offerings: the signature show, the Impression-Dahongpao Scenery Show; the new show Moonlight over Mount Wuyi; and the provision of customised performances for corporate customers, who typically engage the company to perform at their special corporate events, such as team-building activities and annual meetings.
19GF Score
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