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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 %. Sonnet BioTherapeutics Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2025 was -1,708.64%.
As of today (2026-07-16), Sonnet BioTherapeutics Holdings's WACC % is 0.00%. Sonnet BioTherapeutics Holdings's ROC % is 0.00% (calculated using TTM income statement data).
Sonnet BioTherapeutics Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Sonnet BioTherapeutics Holdings's WACC % is 0.00%. Sonnet BioTherapeutics Holdings's ROC % is 0.00% (calculated using TTM income statement data).
Sonnet BioTherapeutics Holdings 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.
Sonnet BioTherapeutics Holdings ROC % Related Terms
Sonnet BioTherapeutics Holdings 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.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
Sonnet BioTherapeutics Holdings (SONN) has a ROC % of -1,708.64% as of Jun. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sonnet BioTherapeutics Holdings and its competitors.
Is Sonnet BioTherapeutics Holdings' ROC % too high?
Sonnet BioTherapeutics Holdings' current ROC % is -1,708.64%. Overall, Sonnet BioTherapeutics Holdings has a GF Score™ of 28/100, reflecting its overall financial health beyond just this single metric.
How does Sonnet BioTherapeutics Holdings' ROC % compare to CING and BOLD?
Sonnet BioTherapeutics Holdings' ROC % of -1,708.64% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROC % depends on the Biotechnology industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Sonnet BioTherapeutics Holdings and its competitors. Sonnet BioTherapeutics Holdings's current ROC % is -1,708.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonnet BioTherapeutics Holdings stock overvalued right now?
Sonnet BioTherapeutics Holdings (SONN) has a current ROC % of -1,708.64%. The current ROC % is -1,708.64%. Sonnet BioTherapeutics Holdings' overall GF Score™ is 28/100. 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 Sonnet BioTherapeutics Holdings (SONN), the current ROC % is -1,708.64% as of Jun. 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.
Sonnet BioTherapeutics Holdings Business Description
Sonnet BioTherapeutics Holdings Inc is a clinical-stage biotechnology company. The Company views its operations and manages its business in one segment. The company has developed FHAB (Fully Human Albumin Binding) technology which is well suited for drug development across a range of human disease areas, including in oncology, autoimmune, pathogenic, inflammatory, and hematological conditions. The firm's pipeline products include SON-080 (low-dose IL-6), SON-1210 (IL15- FHAB-IL12), SON-1010 (IL12-FHAB), and others.
28GF Score
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