ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. ELSA Solutions SpA's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 7.32%.
As of today (2026-06-26), ELSA Solutions SpA's WACC % is 7.12%. ELSA Solutions SpA's ROC % is 5.75% (calculated using TTM income statement data).
ELSA Solutions SpA earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ELSA Solutions SpA (MIL:ELSA) 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, ELSA Solutions SpA's WACC % is 7.12%. ELSA Solutions SpA's ROC % is 5.75% (calculated using TTM income statement data).
ELSA Solutions SpA 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.
ELSA Solutions SpA ROC % Related Terms
ELSA Solutions SpA ROC % Historical Data
* Premium members only.
The historical data trend for ELSA Solutions SpA's ROC % can be seen below:
* 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.
ELSA Solutions SpA (MIL:ELSA) has a ROC % of 7.32% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ELSA Solutions SpA and its competitors.
Is ELSA Solutions SpA's ROC % too high?
ELSA Solutions SpA's current ROC % is 7.32%. The Industrial Products industry median ROC % is 5.23. ELSA Solutions SpA's value of 7.32% is 40.1% above this industry median. Overall, ELSA Solutions SpA has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does ELSA Solutions SpA's ROC % compare to GEV and ETN?
ELSA Solutions SpA's ROC % of 7.32% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.23. ELSA Solutions SpA's value of 7.32% is 40.1% 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 an Industrial Products company?
The median ROC % among Industrial Products companies is 5.23, based on 3,040 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. ELSA Solutions SpA's current ROC % of 7.32% is 40.1% 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 ELSA Solutions SpA and its competitors. For the Industrial Products industry, the median ROC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ELSA Solutions SpA's current ROC % is 7.32%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ELSA Solutions SpA stock overvalued right now?
ELSA Solutions SpA (MIL:ELSA) has a current ROC % of 7.32%. The current ROC % is 7.32% and 40.1% above the Industrial Products industry median of 5.23. ELSA Solutions SpA's overall GF Score™ is 17/100 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 ELSA Solutions SpA (MIL:ELSA), the current ROC % is 7.32% 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.
ELSA Solutions SpA is a company engaged in the development of products for industrial automation and electric mobility. The company specialized in industrial electronics, specifically Motion Control. It produces lithium batteries for starting and traction applications, under the ALIANT BATTERY brand. The company provides services including installation and commissioning, preventive and predictive maintenance, design consulting, and remote assistance. It offers systems, components, and related services for motors, equipment, and industrial systems.
17GF Score
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