ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Vita Life Sciences's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 32.53%.
As of today (2026-06-25), Vita Life Sciences's WACC % is 5.60%. Vita Life Sciences's ROIC % is 30.57% (calculated using TTM income statement data).
Vita Life Sciences 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.
Vita Life Sciences (ASX:VLS) 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, Vita Life Sciences's WACC % is 5.60%. Vita Life Sciences's ROIC % is 30.57% (calculated using TTM income statement data).
Vita Life Sciences 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 %, 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.
Vita Life Sciences ROIC % Related Terms
Vita Life Sciences ROIC % Historical Data
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The historical data trend for Vita Life Sciences'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Vita Life Sciences'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.
Vita Life Sciences ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Vita Life Sciences's ROIC % distribution charts can be found below:
* The bar in red indicates where Vita Life Sciences's ROIC % falls into.
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.
Vita Life Sciences (ASX:VLS) has a ROIC % of 32.53% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Vita Life Sciences and its competitors.
Is Vita Life Sciences' ROIC % too high?
Vita Life Sciences' current ROIC % is 32.53%. The Drug Manufacturers industry median ROIC % is 4.44. Vita Life Sciences' value of 32.53% is 632.7% above this industry median. Overall, Vita Life Sciences has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vita Life Sciences' ROIC % compare to ZTS?
Vita Life Sciences' ROIC % of 32.53% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.44. Vita Life Sciences' value of 32.53% is 632.7% 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 Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.44, based on 985 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. Vita Life Sciences's current ROIC % of 32.53% is 632.7% 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 Vita Life Sciences and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vita Life Sciences's current ROIC % is 32.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vita Life Sciences stock overvalued right now?
Based on GuruFocus' analysis, Vita Life Sciences (ASX:VLS) is currently considered Fairly Valued. The stock's GF Value™ is A$2.47, compared to a current price of A$2.50 — trading 1.2% above its estimated fair value. The current ROIC % is 32.53% and 632.7% above the Drug Manufacturers industry median of 4.44. Vita Life Sciences' overall GF Score™ is 94/100 with 1 warning sign to review. 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 Vita Life Sciences (ASX:VLS), the current ROIC % is 32.53% 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.
Is Vita Life Sciences (ASX:VLS) Overvalued in 2026?
Based on GuruFocus' analysis, Vita Life Sciences stock appears to be overvalued.
The current stock price of A$2.50 is trading 1.2% above its estimated GF Value™ of A$2.47.
GuruFocus considers Vita Life Sciences to be Fairly Valued.
Key valuation signals for ASX:VLS:
ROIC %: 32.53%
GF Value™: A$2.47 vs. price of A$2.50 (1.2% above fair value)
Industry Position: 632.7% above the Drug Manufacturers median
No single metric tells the full story. See the ASX:VLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vita Life Sciences Ltd is an Australian-based pharmaceutical and healthcare company involved in formulating, packaging, selling, and distributing vitamins and supplements. It produces a wide range of premium supplements, vitamins, minerals, herbs, and superfoods catered to all age categories and health conditions. The company markets its products through pharmacies and health food stores under the VitaHealth, VitaScience, and Herbs of Gold brands throughout the Asia-Pacific region. Vita Life Sciences has two operating segments: VMS Operational, which generates maximum revenue, and VMS Investments. Geographically, the Group generates maximum revenue from Malaysia and Singapore, and the rest from Australia, and China and Vietnam.
94GF Score
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