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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 %. Wuhan Dameng Database Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 61.55%.
As of today (2026-07-15), Wuhan Dameng Database Co's WACC % is 10.55%. Wuhan Dameng Database Co's ROC % is 67.84% (calculated using TTM income statement data).
Wuhan Dameng Database 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.
Wuhan Dameng Database Co (SHSE:688692) 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, Wuhan Dameng Database Co's WACC % is 10.55%. Wuhan Dameng Database Co's ROC % is 67.84% (calculated using TTM income statement data).
Wuhan Dameng Database 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 four times the quarterly (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.
Wuhan Dameng Database Co (SHSE:688692) has a ROC % of 61.55% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Wuhan Dameng Database Co and its competitors.
Is Wuhan Dameng Database Co's ROC % too high?
Wuhan Dameng Database Co's current ROC % is 61.55%. The Software industry median ROC % is 3.10. Wuhan Dameng Database Co's value of 61.55% is 1885.5% above this industry median. Overall, Wuhan Dameng Database Co has a GF Score™ of 45/100, reflecting its overall financial health beyond just this single metric.
How does Wuhan Dameng Database Co's ROC % compare to UBER and SHOP?
Wuhan Dameng Database Co's ROC % of 61.55% can be compared against companies in the Software industry. The industry median ROC % is 3.10. Wuhan Dameng Database Co's value of 61.55% is 1885.5% 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 3.10, based on 2,827 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. Wuhan Dameng Database Co's current ROC % of 61.55% is 1885.5% 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 Wuhan Dameng Database Co and its competitors. For the Software industry, the median ROC % is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wuhan Dameng Database Co's current ROC % is 61.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wuhan Dameng Database Co stock overvalued right now?
Wuhan Dameng Database Co (SHSE:688692) has a current ROC % of 61.55%. The current ROC % is 61.55% and 1885.5% above the Software industry median of 3.10. Wuhan Dameng Database Co's overall GF Score™ is 45/100 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 Wuhan Dameng Database Co (SHSE:688692), the current ROC % is 61.55% 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.
AddressNo. 999 Gaoxin Avenue, Floors 16-19, Building C3, Future Technology Building, East Lake New Technology Development Zone, Hubei Province, Wuhan, CHN, 430000
Wuhan Dameng Database Co Ltd is engaged in providing a series of database products and related technical services such as various database software and cluster software, cloud computing and big data products, and database all-in-one machines. Its products include DM8 & Cluster Software, DMRWC, DMDataWatch etc. Its products are used in industries including finance, energy, aviation and communications.
45GF Score
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