China Finance (STU:CVF) ROC %: -7.01% (As of Mar. 2007)


What is China Finance ROC %?

China Finance STU:CVF ROC % is -7.01% as of Mar. 2007.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. China Finance's annualized return on capital (ROC %) for the quarter that ended in Mar. 2007 was -7.01%.

As of today (2026-06-27), China Finance's WACC % is 0.00%. China Finance's ROC % is 0.00% (calculated using TTM income statement data). China Finance earns returns that do not match up to its cost of capital. It will destroy value as it grows.

China Finance  (STU:CVF) 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, China Finance's WACC % is 0.00%. China Finance's ROC % is 0.00% (calculated using TTM income statement data). China Finance 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.

China Finance ROC % Related Terms

China Finance ROC % Historical Data

* Premium members only.

The historical data trend for China Finance'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.

China Finance ROC % Chart

China Finance Annual Data
Trend Dec01 Dec02 Dec03 Dec04 Dec05 Dec06
ROC %
Get a 7-Day Free Trial -155.56 -190.91 975.75 -49.09 61.97

China Finance Quarterly Data
Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -10.49 -2.72 36.72 108.92 -7.01

China Finance ROC % Calculation

China Finance's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2006 is calculated as:

ROC % (A: Dec. 2006 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2005 ) + Invested Capital (A: Dec. 2006 ))/ count )
=3.2 * ( 1 - 0% )/( (0.991 + 9.336)/ 2 )
=3.2/5.1635
=61.97 %

where

Invested Capital(A: Dec. 2005 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=10.823 - 0.03 - ( 9.802 - max(0, 0.03 - 10.816+9.802))
=0.991

Invested Capital(A: Dec. 2006 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=21.603 - 0.054 - ( 12.213 - max(0, 0.067 - 12.553+12.213))
=9.336

China Finance's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2007 is calculated as:

ROC % (Q: Mar. 2007 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2006 ) + Invested Capital (Q: Mar. 2007 ))/ count )
=-0.624 * ( 1 - 0% )/( (9.336 + 8.468)/ 2 )
=-0.624/8.902
=-7.01 %

where

Invested Capital(Q: Dec. 2006 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=21.603 - 0.054 - ( 12.213 - max(0, 0.067 - 12.553+12.213))
=9.336

Invested Capital(Q: Mar. 2007 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=31.088 - 0.054 - ( 22.623 - max(0, 0.069 - 22.635+22.623))
=8.468

Note: The Operating Income data used here is four times the quarterly (Mar. 2007) 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -7.01% mean?
China Finance (STU:CVF) has a ROC % of -7.01% as of Mar. 2007. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on China Finance and its competitors.
Is China Finance's ROC % too high?
China Finance's current ROC % is -7.01%.
How does China Finance's ROC % compare to competitors?
China Finance's ROC % of -7.01% can be compared against companies in the Credit Services industry. The industry median ROC % is 1.98. 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 Credit Services company?
The median ROC % among Credit Services companies is 1.98, based on 417 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. 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 China Finance and its competitors. For the Credit Services industry, the median ROC % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Finance's current ROC % is -7.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Finance stock overvalued right now?
China Finance (STU:CVF) has a current ROC % of -7.01%. The current ROC % is -7.01%. 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 China Finance (STU:CVF), the current ROC % is -7.01% as of Mar. 2007. 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.

China Finance Business Description

Address Shennan Road, 22 nd Floor, Tower 1, China Phoenix Building, Shenzhen, CHN
China Finance Inc through its subsidiary provides financial support and services, mainly in the form of surety guarantees or short-term loans to privately owned small and medium sized enterprises in China.