GST (Gai Tong Enterprise) ROIC %: 21.38% (As of Jun. 2025)


What is Gai Tong Enterprise ROIC %?

Gai Tong Enterprise GST ROIC % is 21.38% as of Jun. 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 %. Gai Tong Enterprise's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2025 was 21.38%.

As of today (2026-06-26), Gai Tong Enterprise's WACC % is 0.00%. Gai Tong Enterprise's ROIC % is 0.00% (calculated using TTM income statement data). Gai Tong Enterprise earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Gai Tong Enterprise  (NAS:GST) 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, Gai Tong Enterprise's WACC % is 0.00%. Gai Tong Enterprise's ROIC % is 0.00% (calculated using TTM income statement data). Gai Tong Enterprise 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.

Gai Tong Enterprise ROIC % Related Terms

Gai Tong Enterprise ROIC % Historical Data

* Premium members only.

The historical data trend for Gai Tong Enterprise'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.

Gai Tong Enterprise ROIC % Chart

Gai Tong Enterprise Annual Data
Trend Dec23 Dec24
ROIC %
19.97 31.19

Gai Tong Enterprise Semi-Annual Data
Dec23 Jun24 Dec24 Jun25
ROIC % 0.00 16.83 44.92 21.38

GST vs : ROIC % Comparison

For the Restaurants subindustry, Gai Tong Enterprise'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.

Gai Tong Enterprise ROIC % vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Gai Tong Enterprise's ROIC % distribution charts can be found below:

* The bar in red indicates where Gai Tong Enterprise's ROIC % falls into.


Gai Tong Enterprise ROIC % Calculation

Gai Tong Enterprise's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROIC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=0.98 * ( 1 - 9.46% )/( (2.785 + 2.904)/ 2 )
=0.887292/2.8445
=31.19 %

where

Invested Capital(A: Dec. 2023 )
=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))
=3.113 - 0.255 - ( 0.073 - max(0, 2.346 - 2.71+0.073))
=2.785

Invested Capital(A: Dec. 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))
=3.57 - 0.26 - ( 0.406 - max(0, 2.031 - 3.237+0.406))
=2.904

Gai Tong Enterprise's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2025 is calculated as:

ROIC % (Q: Jun. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2024 ) + Invested Capital (Q: Jun. 2025 ))/ count )
=0.722 * ( 1 - 24.92% )/( (2.904 + 2.168)/ 2 )
=0.5420776/2.536
=21.38 %

where

Invested Capital(Q: Dec. 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))
=3.57 - 0.26 - ( 0.406 - max(0, 2.031 - 3.237+0.406))
=2.904

Invested Capital(Q: Jun. 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))
=2.281 - 0.362 - ( 1.526 - max(0, 1.894 - 1.645+1.526))
=2.168

Note: The Operating Income data used here is two times the semi-annual (Jun. 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 21.38% mean?
Gai Tong Enterprise (GST) has a ROIC % of 21.38% as of Jun. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Gai Tong Enterprise and its competitors.
Is Gai Tong Enterprise's ROIC % too high?
Gai Tong Enterprise's current ROIC % is 21.38%. The Restaurants industry median ROIC % is 4.21. Gai Tong Enterprise's value of 21.38% is 407.8% above this industry median.
How does Gai Tong Enterprise's ROIC % compare to ?
Gai Tong Enterprise's ROIC % of 21.38% can be compared against companies in the Restaurants industry. The industry median ROIC % is 4.21. Gai Tong Enterprise's value of 21.38% is 407.8% 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 Restaurants company?
The median ROIC % among Restaurants companies is 4.21, based on 359 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. Gai Tong Enterprise's current ROIC % of 21.38% is 407.8% 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 Gai Tong Enterprise and its competitors. For the Restaurants industry, the median ROIC % is 4.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gai Tong Enterprise's current ROIC % is 21.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gai Tong Enterprise stock overvalued right now?
Gai Tong Enterprise (GST) has a current ROIC % of 21.38%. The current ROIC % is 21.38% and 407.8% above the Restaurants industry median of 4.21. 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 Gai Tong Enterprise (GST), the current ROIC % is 21.38% as of Jun. 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.

Gai Tong Enterprise Business Description

Comparable Companies
Address No. 2 Hart Avenue, 5th Floor, Kam Lung Commercial Centre, Kowloon, HKG
Ga Sai Tong Enterprise Ltd is a holding company with no business operations. The company operates through its subsidiaries engaged in restaurant operations that provide food and beverage to customers in Hong Kong.