ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sole Elite Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2014 was 297.33%.
As of today (2026-06-26), Sole Elite Group's WACC % is 0.00%. Sole Elite Group's ROC % is 0.00% (calculated using TTM income statement data).
Sole Elite Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sole Elite Group (NAS:SOLE) 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, Sole Elite Group's WACC % is 0.00%. Sole Elite Group's ROC % is 0.00% (calculated using TTM income statement data).
Sole Elite Group 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.
Sole Elite Group ROC % Related Terms
Sole Elite Group ROC % Historical Data
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The historical data trend for Sole Elite Group'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.
Sole Elite Group ROC % Chart
Sole Elite Group Annual Data
Trend
Dec12
Dec13
Dec14
ROC %
99.58
174.49
297.33
Sole Elite Group Semi-Annual Data
Dec12
Dec13
Dec14
ROC %
99.58
174.49
297.33
Sole Elite Group ROC % Calculation
Sole Elite Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2014 is calculated as:
Note:
The Operating Income data used here is one times the annual (Dec. 2014) 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.
Sole Elite Group (SOLE) has a ROC % of 297.33% as of Dec. 2014. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sole Elite Group and its competitors.
Is Sole Elite Group's ROC % too high?
Sole Elite Group's current ROC % is 297.33%. The Manufacturing - Apparel & Accessories industry median ROC % is 2.91. Sole Elite Group's value of 297.33% is 10135.1% above this industry median.
How does Sole Elite Group's ROC % compare to FORD and JCLY?
Sole Elite Group's ROC % of 297.33% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROC % is 2.91. Sole Elite Group's value of 297.33% is 10135.1% 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 Manufacturing - Apparel & Accessories company?
The median ROC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,048 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. Sole Elite Group's current ROC % of 297.33% is 10135.1% 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 Sole Elite Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sole Elite Group's current ROC % is 297.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sole Elite Group stock overvalued right now?
Sole Elite Group (SOLE) has a current ROC % of 297.33%. The current ROC % is 297.33% and 10135.1% above the Manufacturing - Apparel & Accessories industry median of 2.91. 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 Sole Elite Group (SOLE), the current ROC % is 297.33% as of Dec. 2014. 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.
Sole Elite Group Ltd was formed on December 10, 2014. The Company, through its subsidiaries, is engaged in the business of designing, producing and selling shoe soles. It has four product lines: RB soles, MD soles, single color IP sole and dual color IP sole products. Its manufacturing facilities in China are located in Jinjiang, Fujian Province, which has a high concentration of footwear industry participants. Sports shoe soles are made of various materials, such as EVA, RB, PU, TPE, and TPU. The core materials of shoe soles are EVA and RB. The principal raw materials used in the production of its products are EVA, rubber, TPU, color dyes and other chemical additives. Its raw materials are sourced suppliers in the PRC located in Quanzhou, Fujian Province, which is close to its production facilities. It sells products to sportswear manufacturers that are based in China, including a number of companies in the athletic wear market, including Li-Ning, 361º, ERKE and Anta. It also sells products to OEM footwear companies for international athletic brands, such as Taiwan Ching Luh, which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour in Asia. Customers use its products as components in the athletic footwear that it sells to end consumers, athletic wear companies and shoe distributors. Its customer includes Fujian Ching Luh Shoes Co., Ltd., which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour. Its direct competition comes from various shoe sole production companies in China, such as Multi Sports Holding Ltd., Victory New Materials Limited Company, Fenghua SoleTech AG, Tai Ya Shoes Co., Ltd., Mao Tai (Fujian) Soles Co., Ltd. and Xing Quan International Sports Holdings Limited. It currently hold four PRC patents. The Company is subject to all China's national and local laws and regulations, including those related to environmental protection, foreign currency, property ownership and taxation.
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