ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Life Water Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 14.59%.
As of today (2026-07-04), Life Water Bhd's WACC % is 9.47%. Life Water Bhd's ROC % is 15.67% (calculated using TTM income statement data).
Life Water Bhd 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.
Life Water Bhd (XKLS:5328) 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, Life Water Bhd's WACC % is 9.47%. Life Water Bhd's ROC % is 15.67% (calculated using TTM income statement data).
Life Water Bhd 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.
Life Water Bhd ROC % Related Terms
Life Water Bhd ROC % Historical Data
* Premium members only.
The historical data trend for Life Water Bhd'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.
Note:
The Operating Income data used here is four times the quarterly (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.
Life Water Bhd (XKLS:5328) has a ROC % of 14.59% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Life Water Bhd and its competitors.
Is Life Water Bhd's ROC % too high?
Life Water Bhd's current ROC % is 14.59%. The Beverages - Non-Alcoholic industry median ROC % is 8.90. Life Water Bhd's value of 14.59% is 63.9% above this industry median. Overall, Life Water Bhd has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Life Water Bhd's ROC % compare to KO and PEP?
Life Water Bhd's ROC % of 14.59% can be compared against companies in the Beverages - Non-Alcoholic industry. The industry median ROC % is 8.90. Life Water Bhd's value of 14.59% is 63.9% 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 Beverages - Non-Alcoholic company?
The median ROC % among Beverages - Non-Alcoholic companies is 8.90, based on 113 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. Life Water Bhd's current ROC % of 14.59% is 63.9% 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 Life Water Bhd and its competitors. For the Beverages - Non-Alcoholic industry, the median ROC % is 8.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Life Water Bhd's current ROC % is 14.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Life Water Bhd stock overvalued right now?
Life Water Bhd (XKLS:5328) has a current ROC % of 14.59%. The current ROC % is 14.59% and 63.9% above the Beverages - Non-Alcoholic industry median of 8.90. Life Water Bhd's overall GF Score™ is 20/100 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 Life Water Bhd (XKLS:5328), the current ROC % is 14.59% 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.
Life Water Bhd is an investment holding company. The company, through its subsidiaries, is principally engaged in the manufacturing, sales and marketing of drinking water, carbonated drinks and other drinks, polyethylene terephthalate (PET) containers and related products, manufacturing of preforms and caps, provision of leasing service of motor vehicles and collection of recyclable materials. The company's core business segments are: Bottled Drinking Water, Carbonated Drinks, and Other Products and Packaging. The majority of its revenue is derived from the Bottled Drinking Water segment.
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