ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Canadian Large Cap Leaders Split's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 65.78%.
As of today (2026-06-25), Canadian Large Cap Leaders Split's WACC % is 9.54%. Canadian Large Cap Leaders Split's ROC % is 49.07% (calculated using TTM income statement data).
Canadian Large Cap Leaders Split 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.
Canadian Large Cap Leaders Split (TSX:NPS) 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, Canadian Large Cap Leaders Split's WACC % is 9.54%. Canadian Large Cap Leaders Split's ROC % is 49.07% (calculated using TTM income statement data).
Canadian Large Cap Leaders Split 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.
Canadian Large Cap Leaders Split ROC % Related Terms
Canadian Large Cap Leaders Split 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 (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.
Canadian Large Cap Leaders Split (TSX:NPS) has a ROC % of 65.78% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Canadian Large Cap Leaders Split and its competitors.
Is Canadian Large Cap Leaders Split's ROC % too high?
Canadian Large Cap Leaders Split's current ROC % is 65.78%. The Asset Management industry median ROC % is 1.20. Canadian Large Cap Leaders Split's value of 65.78% is 5404.6% above this industry median. Overall, Canadian Large Cap Leaders Split has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Canadian Large Cap Leaders Split's ROC % compare to BLK and BX?
Canadian Large Cap Leaders Split's ROC % of 65.78% can be compared against companies in the Asset Management industry. The industry median ROC % is 1.20. Canadian Large Cap Leaders Split's value of 65.78% is 5404.6% 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 an Asset Management company?
The median ROC % among Asset Management companies is 1.20, based on 710 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. Canadian Large Cap Leaders Split's current ROC % of 65.78% is 5404.6% 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 Canadian Large Cap Leaders Split and its competitors. For the Asset Management industry, the median ROC % is 1.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Large Cap Leaders Split's current ROC % is 65.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canadian Large Cap Leaders Split stock overvalued right now?
Canadian Large Cap Leaders Split (TSX:NPS) has a current ROC % of 65.78%. The current ROC % is 65.78% and 5404.6% above the Asset Management industry median of 1.20. Canadian Large Cap Leaders Split's overall GF Score™ is 22/100 with 1 warning sign 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 Canadian Large Cap Leaders Split (TSX:NPS), the current ROC % is 65.78% 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.
Canadian Large Cap Leaders Split Business Description
Canadian Large Cap Leaders Split Corp is a mutual fund corporation. The company will be amended prior to closing to create the Preferred Shares and the Class A Shares. The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential quarterly cash distributions and the investment objectives for the Class A Shares are to provide their holders with regular monthly noncumulative cash distributions.
22GF Score
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