ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Converge Information And Communications Technology Solutions's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 12.06%.
As of today (2026-06-24), Converge Information And Communications Technology Solutions's WACC % is 11.40%. Converge Information And Communications Technology Solutions's ROIC % is 12.97% (calculated using TTM income statement data).
Converge Information And Communications Technology Solutions 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.
Converge Information And Communications Technology Solutions (OTCPK:CVGYY) 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, Converge Information And Communications Technology Solutions's WACC % is 11.40%. Converge Information And Communications Technology Solutions's ROIC % is 12.97% (calculated using TTM income statement data).
Converge Information And Communications Technology Solutions 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.
Converge Information And Communications Technology Solutions ROIC % Related Terms
Converge Information And Communications Technology Solutions 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.
Converge Information And Communications Technology Solutions ROIC % Chart
Converge Information And Communications Technology Solutions Annual Data
* 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.
Converge Information And Communications Technology Solutions ROIC % vs Telecommunication Services Industry
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.
Converge Information And Communications Technology Solutions (CVGYY) has a ROIC % of 12.06% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Converge Information And Communications Technology Solutions and its competitors.
Is Converge Information And Communications Technology Solutions' ROIC % too high?
Converge Information And Communications Technology Solutions' current ROIC % is 12.06%. The Telecommunication Services industry median ROIC % is 4.54. Converge Information And Communications Technology Solutions' value of 12.06% is 165.6% above this industry median. Overall, Converge Information And Communications Technology Solutions has a GF Score™ of 95/100, reflecting its overall financial health beyond just this single metric.
How does Converge Information And Communications Technology Solutions' ROIC % compare to TMUS and VZ?
Converge Information And Communications Technology Solutions' ROIC % of 12.06% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.54. Converge Information And Communications Technology Solutions' value of 12.06% is 165.6% 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 a Telecommunication Services company?
The median ROIC % among Telecommunication Services companies is 4.54, based on 366 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. Converge Information And Communications Technology Solutions's current ROIC % of 12.06% is 165.6% 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 Converge Information And Communications Technology Solutions and its competitors. For the Telecommunication Services industry, the median ROIC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Converge Information And Communications Technology Solutions's current ROIC % is 12.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Converge Information And Communications Technology Solutions stock overvalued right now?
Converge Information And Communications Technology Solutions (CVGYY) has a current ROIC % of 12.06%. The current ROIC % is 12.06% and 165.6% above the Telecommunication Services industry median of 4.54. Converge Information And Communications Technology Solutions' overall GF Score™ is 95/100 with 2 warning signs 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 Converge Information And Communications Technology Solutions (CVGYY), the current ROIC % is 12.06% 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.
Converge Information And Communications Technology Solutions Business Description
Converge Information And Communications Technology Solutions Inc is a pure-play high-speed fixed broadband provider in the Philippines, with industry optical fiber-based connectivity services. Its singular focus on high-speed fixed broadband services is deeply ingrained in the organization and permeates all aspects of Converge's operations, including network rollout, product and service innovation, sales, and customer service. The company operates in two businesses, namely Residential Business and Enterprise Business, and it generates maximum revenue from Residential Business. The company derives all its revenue from Philippines.
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