ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Pro Fx Tech's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 26.20%.
As of today (2026-06-24), Pro Fx Tech's WACC % is 13.15%. Pro Fx Tech's ROC % is 26.20% (calculated using TTM income statement data).
Pro Fx Tech 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.
Pro Fx Tech (NSE:PROFX) 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, Pro Fx Tech's WACC % is 13.15%. Pro Fx Tech's ROC % is 26.20% (calculated using TTM income statement data).
Pro Fx Tech 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.
Pro Fx Tech ROC % Related Terms
Pro Fx Tech ROC % Historical Data
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The historical data trend for Pro Fx Tech'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 one times the annual (Mar. 2026) 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.
Pro Fx Tech (NSE:PROFX) has a ROC % of 26.20% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Pro Fx Tech and its competitors.
Is Pro Fx Tech's ROC % too high?
Pro Fx Tech's current ROC % is 26.20%. The Hardware industry median ROC % is 4.12. Pro Fx Tech's value of 26.20% is 536.7% above this industry median. Overall, Pro Fx Tech has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Pro Fx Tech's ROC % compare to SNX and ARW?
Pro Fx Tech's ROC % of 26.20% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Pro Fx Tech's value of 26.20% is 536.7% 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,444 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. Pro Fx Tech's current ROC % of 26.20% is 536.7% 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 Pro Fx Tech and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pro Fx Tech's current ROC % is 26.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pro Fx Tech stock overvalued right now?
Pro Fx Tech (NSE:PROFX) has a current ROC % of 26.20%. The current ROC % is 26.20% and 536.7% above the Hardware industry median of 4.12. Pro Fx Tech's overall GF Score™ is 19/100 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 Pro Fx Tech (NSE:PROFX), the current ROC % is 26.20% as of Mar. 2026. 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.
Pro Fx Tech Ltd is engaged in the distribution of AV (Audio-Video) products, including but not limited to amplifiers & processors, turn-tables, audio streamers, speakers, subwoofers, sound bars, and cables. In addition to distribution, it excels in designing and implementing customized AV solutions for home theatres, premium home automation, multi-room audio systems, and bespoke AV solutions for corporate customers.
19GF Score
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