ALD (Altech Digital Co) ROIC %: 109.90% (As of Mar. 2025)


What is Altech Digital Co ROIC %?

Altech Digital Co ALD ROIC % is 109.90% as of Mar. 2025.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Altech Digital Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2025 was 109.90%.

As of today (2026-06-25), Altech Digital Co's WACC % is 0.00%. Altech Digital Co's ROIC % is 0.00% (calculated using TTM income statement data). Altech Digital Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Altech Digital Co  (NAS:ALD) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Altech Digital Co's WACC % is 0.00%. Altech Digital Co's ROIC % is 0.00% (calculated using TTM income statement data). Altech Digital 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 %, ROIC % 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.

Altech Digital Co ROIC % Related Terms

Altech Digital Co ROIC % Historical Data

* Premium members only.

The historical data trend for Altech Digital Co's ROIC % 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.

Altech Digital Co ROIC % Chart

Altech Digital Co Annual Data
Trend Mar24 Mar25
ROIC %
35.08 109.90

Altech Digital Co Semi-Annual Data
Mar24 Mar25
ROIC % 35.08 109.90

ALD vs : ROIC % Comparison

For the Information Technology Services subindustry, Altech Digital Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Altech Digital Co ROIC % vs Software Industry

For the Software industry and Technology sector, Altech Digital Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Altech Digital Co's ROIC % falls into.


Altech Digital Co ROIC % Calculation

Altech Digital Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2025 is calculated as:

ROIC % (A: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2024 ) + Invested Capital (A: Mar. 2025 ))/ count )
=1.212 * ( 1 - 13.36% )/( (1.148 + 0.763)/ 2 )
=1.0500768/0.9555
=109.90 %

where

Invested Capital(A: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1.114 - 0.087 - ( 0.555 - max(0, 1.21 - 1.089+0.555))
=1.148

Invested Capital(A: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1.761 - 0.173 - ( 0.825 - max(0, 0.806 - 1.749+0.825))
=0.763

Altech Digital Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2025 is calculated as:

ROIC % (Q: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Mar. 2025 ))/ count )
=1.212 * ( 1 - 13.36% )/( (1.148 + 0.763)/ 2 )
=1.0500768/0.9555
=109.90 %

where

Invested Capital(Q: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1.114 - 0.087 - ( 0.555 - max(0, 1.21 - 1.089+0.555))
=1.148

Invested Capital(Q: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1.761 - 0.173 - ( 0.825 - max(0, 0.806 - 1.749+0.825))
=0.763

Note: The Operating Income data used here is one times the annual (Mar. 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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 109.90% mean?
Altech Digital Co (ALD) has a ROIC % of 109.90% as of Mar. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Altech Digital Co and its competitors.
Is Altech Digital Co's ROIC % too high?
Altech Digital Co's current ROIC % is 109.90%. The Software industry median ROIC % is 3.11. Altech Digital Co's value of 109.90% is 3439.5% above this industry median.
How does Altech Digital Co's ROIC % compare to ?
Altech Digital Co's ROIC % of 109.90% can be compared against companies in the Software industry. The industry median ROIC % is 3.11. Altech Digital Co's value of 109.90% is 3439.5% 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 ROIC % for a Software company?
The median ROIC % among Software companies is 3.11, based on 2,828 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Altech Digital Co's current ROIC % of 109.90% is 3439.5% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Altech Digital Co and its competitors. For the Software industry, the median ROIC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Altech Digital Co's current ROIC % is 109.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Altech Digital Co stock overvalued right now?
Altech Digital Co (ALD) has a current ROIC % of 109.90%. The current ROIC % is 109.90% and 3439.5% above the Software industry median of 3.11. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Altech Digital Co (ALD), the current ROIC % is 109.90% as of Mar. 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.

Altech Digital Co Business Description

Comparable Companies
Address 100 Cyberport Road, Units 608-61, Level 6, Core C, Cyberport 3, Pok Fu Lam, Hong Kong, HKG
Altech Digital Co Ltd is an IT solutions service provider and it operates its business in Hong Kong through its indirect wholly-owned Operating Subsidiary. The company focuses on providing comprehensive and inventive solutions designed to optimize business performance of its customers, meet various industry-specific operational challenges and create new business opportunities for them. It offers services to customers from a variety of industries including multinational financial services, property development and business solutions services. Its IT solutions services can be categorized into (i) system development services; and (ii) system maintenance and consultancy services.