ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. China Aviation Oil (Singapore)'s annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 13.20%.
As of today (2026-06-26), China Aviation Oil (Singapore)'s WACC % is 10.61%. China Aviation Oil (Singapore)'s ROIC % is 11.35% (calculated using TTM income statement data).
China Aviation Oil (Singapore) 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.
China Aviation Oil (Singapore) (OTCPK:CAOLF) 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, China Aviation Oil (Singapore)'s WACC % is 10.61%. China Aviation Oil (Singapore)'s ROIC % is 11.35% (calculated using TTM income statement data).
China Aviation Oil (Singapore) 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.
China Aviation Oil (Singapore) ROIC % Related Terms
China Aviation Oil (Singapore) ROIC % 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.
For the Oil & Gas Refining & Marketing subindustry, China Aviation Oil (Singapore)'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.
China Aviation Oil (Singapore) ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, China Aviation Oil (Singapore)'s ROIC % distribution charts can be found below:
* The bar in red indicates where China Aviation Oil (Singapore)'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.
China Aviation Oil (Singapore) (CAOLF) has a ROIC % of 13.20% 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 China Aviation Oil (Singapore) and its competitors.
Is China Aviation Oil (Singapore)'s ROIC % too high?
China Aviation Oil (Singapore)'s current ROIC % is 13.20%. The Oil & Gas industry median ROIC % is 3.63. China Aviation Oil (Singapore)'s value of 13.20% is 263.6% above this industry median. Overall, China Aviation Oil (Singapore) has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does China Aviation Oil (Singapore)'s ROIC % compare to VLO and MPC?
China Aviation Oil (Singapore)'s ROIC % of 13.20% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.63. China Aviation Oil (Singapore)'s value of 13.20% is 263.6% 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 ROIC % for an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.63, based on 997 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. China Aviation Oil (Singapore)'s current ROIC % of 13.20% is 263.6% 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 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 China Aviation Oil (Singapore) and its competitors. For the Oil & Gas industry, the median ROIC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Aviation Oil (Singapore)'s current ROIC % is 13.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Aviation Oil (Singapore) stock overvalued right now?
China Aviation Oil (Singapore) (CAOLF) has a current ROIC % of 13.20%. The stock's GF Value™ is $0.98, compared to a current price of $1.74 — trading 77.6% above its estimated fair value. The current ROIC % is 13.20% and 263.6% above the Oil & Gas industry median of 3.63. China Aviation Oil (Singapore)'s overall GF Score™ is 67/100 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 China Aviation Oil (Singapore) (CAOLF), the current ROIC % is 13.20% 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 China Aviation Oil (Singapore) (CAOLF) Overvalued in 2026?
Based on GuruFocus' analysis, China Aviation Oil (Singapore) stock appears to be overvalued.
The current stock price of $1.74 is trading 77.6% above its estimated GF Value™ of $0.98.
Key valuation signals for CAOLF:
ROIC %: 13.20%
GF Value™: $0.98 vs. price of $1.74 (77.6% above fair value)
Industry Position: 263.6% above the Oil & Gas median
No single metric tells the full story. See the CAOLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Aviation Oil (Singapore) Business Description
China Aviation Oil (Singapore) Corp Ltd provides transportation fuels. With the core business involving the supply and trading of jet fuel across China and internationally, covering Asia-Pacific, North America, Europe, and the Middle East, the company also trades other oil products, which include fuel oil, gas oil, aviation gas, and crude oil in the Asia-Pacific region. The company operates in three segments: i) Middle Distillates: It engages in supplying and trading jet fuel and gas oil. ii) Other Oil Products: It involves the supply and trading of fuel oil, crude oil, and gasoline, and iii) Investments in Oil-Related Assets: Investments in oil-related assets through the Group's holdings in associates. The majority of the company's revenue is derived from the Middle distillates segment.
67GF Score
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