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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 %. Zhibao Technology's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 2.22%.
As of today (2026-08-31), Zhibao Technology's WACC % is 10.24%. Zhibao Technology's ROC % is -55.40% (calculated using TTM income statement data).
Zhibao Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Zhibao Technology's WACC % is 10.24%. Zhibao Technology's ROC % is -55.40% (calculated using TTM income statement data).
Zhibao Technology 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.
Zhibao Technology ROC % Related Terms
Zhibao Technology ROC % Historical Data
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The historical data trend for Zhibao Technology'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 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.
Zhibao Technology (ZBAO) has a ROC % of 2.22% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Zhibao Technology and its competitors.
Is Zhibao Technology's ROC % too high?
Zhibao Technology's current ROC % is 2.22%. The Insurance industry median ROC % is 3.36. Zhibao Technology's value of 2.22% is 33.8% below this industry median. Overall, Zhibao Technology has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Zhibao Technology's ROC % compare to GOCOQ and EZRA?
Zhibao Technology's ROC % of 2.22% can be compared against companies in the Insurance industry. The industry median ROC % is 3.36. Zhibao Technology's value of 2.22% is 33.8% 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 an Insurance company?
The median ROC % among Insurance companies is 3.36, based on 366 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. Zhibao Technology's current ROC % of 2.22% is 33.8% 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 Zhibao Technology and its competitors. For the Insurance industry, the median ROC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhibao Technology's current ROC % is 2.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhibao Technology stock overvalued right now?
Zhibao Technology (ZBAO) has a current ROC % of 2.22%. The current ROC % is 2.22% and 33.8% below the Insurance industry median of 3.36. Zhibao Technology's overall GF Score™ is 8/100 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 Zhibao Technology (ZBAO), the current ROC % is 2.22% 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.
Zhibao Technology Inc is an insurance technology company providing digital insurance brokerage services in China. The Company operates a 2B2C digital embedded insurance business model, which it pioneered in China, and provides managing general underwriter (MGU) services to insurance companies, including product design, underwriting, reinsurance, claims, and risk control within specific product or market segments. It offers customized digital insurance solutions for B-side channels, including Internet platforms, enterprises, and government agencies, by embedding insurance products into existing business platforms and providing digital insurance brokerage services to C-end customers.
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