ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Elegance Optical International Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2025 was 22.71%.
Elegance Optical International Holdings (FRA:5HW) 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, Elegance Optical International Holdings's WACC % is 2.63%. Elegance Optical International Holdings's ROIC % is -11.28% (calculated using TTM income statement data).
Elegance Optical International Holdings 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.
Elegance Optical International Holdings ROIC % Related Terms
Elegance Optical International Holdings 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.
Elegance Optical International Holdings ROIC % Chart
Elegance Optical International Holdings Annual Data
For the Medical Instruments & Supplies subindustry, Elegance Optical International Holdings'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.
Elegance Optical International Holdings ROIC % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Elegance Optical International Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Elegance Optical International Holdings's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Sep. 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.
Elegance Optical International Holdings (FRA:5HW) has a ROIC % of 22.71% as of Sep. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Elegance Optical International Holdings and its competitors.
Is Elegance Optical International Holdings' ROIC % too high?
Elegance Optical International Holdings' current ROIC % is 22.71%. The Medical Devices & Instruments industry median ROIC % is 1.27. Elegance Optical International Holdings' value of 22.71% is 1695.3% above this industry median. Overall, Elegance Optical International Holdings has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Elegance Optical International Holdings' ROIC % compare to ISRG and BDX?
Elegance Optical International Holdings' ROIC % of 22.71% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROIC % is 1.27. Elegance Optical International Holdings' value of 22.71% is 1695.3% 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 Medical Devices & Instruments company?
The median ROIC % among Medical Devices & Instruments companies is 1.27, based on 848 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. Elegance Optical International Holdings's current ROIC % of 22.71% is 1695.3% 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 Elegance Optical International Holdings and its competitors. For the Medical Devices & Instruments industry, the median ROIC % is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elegance Optical International Holdings's current ROIC % is 22.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elegance Optical International Holdings stock overvalued right now?
Elegance Optical International Holdings (FRA:5HW) has a current ROIC % of 22.71%. The current ROIC % is 22.71% and 1695.3% above the Medical Devices & Instruments industry median of 1.27. Elegance Optical International Holdings' 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Elegance Optical International Holdings (FRA:5HW), the current ROIC % is 22.71% as of Sep. 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.
Elegance Optical International Holdings Business Description
Elegance Optical International Holdings Ltd and its subsidiaries are the manufacturers and sellers of optical frames and sunglasses. Its operating segments include the trading segment engaged in the manufacture and trading of optical frames and sunglasses; the Property investment segment is involved in leasing properties for rental income; the Debts and securities investment segment engaged in investments in financial instruments and quoted shares; Film investment and distribution segment engaged in film right and movie distributions; and Energy business. It derives key revenue from the trading segment. It operates in Europe, America, the PRC (including Hong Kong), and other countries.
8GF Score
Get the complete analysis for FRA:5HW
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:5HW has been successfully added to your 
