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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 %. Tsuji Hongo IT Consulting Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 20.28%.
As of today (2026-07-16), Tsuji Hongo IT Consulting Co's WACC % is 8.34%. Tsuji Hongo IT Consulting Co's ROC % is 23.86% (calculated using TTM income statement data).
Tsuji Hongo IT Consulting Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Tsuji Hongo IT Consulting Co (TSE:476A) 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, Tsuji Hongo IT Consulting Co's WACC % is 8.34%. Tsuji Hongo IT Consulting Co's ROC % is 23.86% (calculated using TTM income statement data).
Tsuji Hongo IT Consulting Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Tsuji Hongo IT Consulting Co ROC % Related Terms
Tsuji Hongo IT Consulting Co 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 two times the semi-annual (Mar. 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.
Tsuji Hongo IT Consulting Co (TSE:476A) has a ROC % of 20.28% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tsuji Hongo IT Consulting Co and its competitors.
Is Tsuji Hongo IT Consulting Co's ROC % too high?
Tsuji Hongo IT Consulting Co's current ROC % is 20.28%. The Business Services industry median ROC % is 6.04. Tsuji Hongo IT Consulting Co's value of 20.28% is 235.8% above this industry median. Overall, Tsuji Hongo IT Consulting Co has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Tsuji Hongo IT Consulting Co's ROC % compare to VRSK and EFX?
Tsuji Hongo IT Consulting Co's ROC % of 20.28% can be compared against companies in the Business Services industry. The industry median ROC % is 6.04. Tsuji Hongo IT Consulting Co's value of 20.28% is 235.8% 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 Business Services company?
The median ROC % among Business Services companies is 6.04, based on 1,074 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. Tsuji Hongo IT Consulting Co's current ROC % of 20.28% is 235.8% 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 Tsuji Hongo IT Consulting Co and its competitors. For the Business Services industry, the median ROC % is 6.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tsuji Hongo IT Consulting Co's current ROC % is 20.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tsuji Hongo IT Consulting Co stock overvalued right now?
Tsuji Hongo IT Consulting Co (TSE:476A) has a current ROC % of 20.28%. The current ROC % is 20.28% and 235.8% above the Business Services industry median of 6.04. Tsuji Hongo IT Consulting Co's overall GF Score™ is 20/100. 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 Tsuji Hongo IT Consulting Co (TSE:476A), the current ROC % is 20.28% as of Mar. 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.
Tsuji Hongo IT Consulting Co Ltd is principally into offering consulting services for the general business management department. The company is also into software and hardware sales/implementation support, accounting/human resources outsourcing, inheritance for individuals, and development and operation of web services for accounting firms.
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