ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Microprogram Information Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 3.03%.
As of today (2026-07-03), Microprogram Information Co's WACC % is 9.96%. Microprogram Information Co's ROC % is 3.71% (calculated using TTM income statement data).
Microprogram Information Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Microprogram Information Co (TPE:7721) 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, Microprogram Information Co's WACC % is 9.96%. Microprogram Information Co's ROC % is 3.71% (calculated using TTM income statement data).
Microprogram Information Co 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 (Dec. 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.
Microprogram Information Co (TPE:7721) has a ROC % of 3.03% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Microprogram Information Co and its competitors.
Is Microprogram Information Co's ROC % too high?
Microprogram Information Co's current ROC % is 3.03%. The Software industry median ROC % is 3.05. Microprogram Information Co's value of 3.03% is 0.5% below this industry median. Overall, Microprogram Information Co has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Microprogram Information Co's ROC % compare to MSFT and ORCL?
Microprogram Information Co's ROC % of 3.03% can be compared against companies in the Software industry. The industry median ROC % is 3.05. Microprogram Information Co's value of 3.03% is 0.5% below 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 3.05, based on 2,828 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. Microprogram Information Co's current ROC % of 3.03% is 0.5% below 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 Microprogram Information Co and its competitors. For the Software industry, the median ROC % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microprogram Information Co's current ROC % is 3.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microprogram Information Co stock overvalued right now?
Microprogram Information Co (TPE:7721) has a current ROC % of 3.03%. The current ROC % is 3.03% and 0.5% below the Software industry median of 3.05. Microprogram Information Co's overall GF Score™ is 20/100 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 Microprogram Information Co (TPE:7721), the current ROC % is 3.03% as of Dec. 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.
Microprogram Information Co is a company that provides industrial IoT technology services and is committed to helping its clients a sustainable life. It focuses on the three areas of electronic payment, wireless sensing, and cloud data. Through user research, vertical integration of software and hardware technologies, terminal sensor devices, mobile apps, cloud service platforms, and core technologies of big data analysis, assist transportation and finance, retail, manufacturing, bicycle, and other industries to innovate and upgrade. The company assists with the definition of requirements, concept creation, product development, and service optimization, using the advantages of software and hardware integration technology.
20GF Score
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