ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sky Century Investment's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 8.84%.
As of today (2026-06-27), Sky Century Investment's WACC % is 26.82%. Sky Century Investment's ROC % is -29.44% (calculated using TTM income statement data).
Sky Century Investment earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sky Century Investment (OTCPK:SKYI) 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, Sky Century Investment's WACC % is 26.82%. Sky Century Investment's ROC % is -29.44% (calculated using TTM income statement data).
Sky Century Investment 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.
* 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 (Feb. 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.
Sky Century Investment (SKYI) has a ROC % of 8.84% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sky Century Investment and its competitors.
Is Sky Century Investment's ROC % too high?
Sky Century Investment's current ROC % is 8.84%. The Drug Manufacturers industry median ROC % is 4.44. Sky Century Investment's value of 8.84% is 99.1% above this industry median. Overall, Sky Century Investment has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Sky Century Investment's ROC % compare to BSPK and CPMD?
Sky Century Investment's ROC % of 8.84% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.44. Sky Century Investment's value of 8.84% is 99.1% 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 a Drug Manufacturers company?
The median ROC % among Drug Manufacturers companies is 4.44, based on 985 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. Sky Century Investment's current ROC % of 8.84% is 99.1% 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 Sky Century Investment and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sky Century Investment's current ROC % is 8.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sky Century Investment stock overvalued right now?
Sky Century Investment (SKYI) has a current ROC % of 8.84%. The current ROC % is 8.84% and 99.1% above the Drug Manufacturers industry median of 4.44. Sky Century Investment's overall GF Score™ is 25/100 with 5 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 Sky Century Investment (SKYI), the current ROC % is 8.84% as of Feb. 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.
Sky Century Investment Inc operates four primary business lines, with profits generated from IT Services, including Technical Support and Server Leasing, and from the sale of RSS feeds and Podcasts. The IT Services segment provides ongoing technical support, maintenance, system upgrades, and high-performance server leasing, supporting growing demand for cloud solutions, data management, and network infrastructure. The Company also owns the Cannabis News application, a mobile platform that aggregates cannabis-related news from diverse sources and delivers real-time updates, though it is not commercially viable and has not generated revenue to date. The Company operates in competitive markets across IT services, marketing services, RSS feed services, and the cannabis industry.
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