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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 %. Purity For Information Technology Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 12.40%.
As of today (2026-07-23), Purity For Information Technology Co's WACC % is 10.49%. Purity For Information Technology Co's ROC % is 7.65% (calculated using TTM income statement data).
Purity For Information Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Purity For Information Technology Co (SAU:9614) 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, Purity For Information Technology Co's WACC % is 10.49%. Purity For Information Technology Co's ROC % is 7.65% (calculated using TTM income statement data).
Purity For Information Technology 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.
Purity For Information Technology Co ROC % Related Terms
Purity For Information Technology 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.
Purity For Information Technology Co ROC % Chart
Purity For Information Technology Co Annual Data
Trend
Jun24
Jun25
ROC %
9.31
7.37
Purity For Information Technology Co Semi-Annual Data
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.
Purity For Information Technology Co (SAU:9614) has a ROC % of 12.40% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Purity For Information Technology Co and its competitors.
Is Purity For Information Technology Co's ROC % too high?
Purity For Information Technology Co's current ROC % is 12.40%. The Software industry median ROC % is 3.20. Purity For Information Technology Co's value of 12.40% is 287.5% above this industry median. Overall, Purity For Information Technology Co has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Purity For Information Technology Co's ROC % compare to IBM and ACN?
Purity For Information Technology Co's ROC % of 12.40% can be compared against companies in the Software industry. The industry median ROC % is 3.20. Purity For Information Technology Co's value of 12.40% is 287.5% 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 Software company?
The median ROC % among Software companies is 3.20, based on 2,833 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. Purity For Information Technology Co's current ROC % of 12.40% is 287.5% 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 Purity For Information Technology Co and its competitors. For the Software industry, the median ROC % is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Purity For Information Technology Co's current ROC % is 12.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Purity For Information Technology Co stock overvalued right now?
Purity For Information Technology Co (SAU:9614) has a current ROC % of 12.40%. The current ROC % is 12.40% and 287.5% above the Software industry median of 3.20. Purity For Information Technology Co's overall GF Score™ is 16/100 with 4 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 Purity For Information Technology Co (SAU:9614), the current ROC % is 12.40% 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.
Purity For Information Technology Co Business Description
Purity For Information Technology Co is engaged to improve infrastructure efficiency and availability. The company is engaged in wholesale of computers and related supplies, including printers and ink cartridges, operating systems, systems analysis, custom software design and programming, user interface and experience design, establishing website hosting infrastructure, data processing services and related activities.
16GF Score
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