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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Guangzhou Xiao Noodles Catering Management Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 13.42%.
As of today (2026-07-21), Guangzhou Xiao Noodles Catering Management Co's WACC % is 8.62%. Guangzhou Xiao Noodles Catering Management Co's ROIC % is 11.77% (calculated using TTM income statement data).
Guangzhou Xiao Noodles Catering Management Co 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.
Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) 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, Guangzhou Xiao Noodles Catering Management Co's WACC % is 8.62%. Guangzhou Xiao Noodles Catering Management Co's ROIC % is 11.77% (calculated using TTM income statement data).
Guangzhou Xiao Noodles Catering Management Co 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.
Guangzhou Xiao Noodles Catering Management Co ROIC % Related Terms
Guangzhou Xiao Noodles Catering Management Co 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.
Guangzhou Xiao Noodles Catering Management Co ROIC % Chart
Guangzhou Xiao Noodles Catering Management Co Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
ROIC %
-2.73
7.22
7.43
11.55
Guangzhou Xiao Noodles Catering Management Co Semi-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.
Guangzhou Xiao Noodles Catering Management Co ROIC % vs Restaurants Industry
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.
Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) has a ROIC % of 13.42% 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 Guangzhou Xiao Noodles Catering Management Co and its competitors.
Is Guangzhou Xiao Noodles Catering Management Co's ROIC % too high?
Guangzhou Xiao Noodles Catering Management Co's current ROIC % is 13.42%. The Restaurants industry median ROIC % is 4.19. Guangzhou Xiao Noodles Catering Management Co's value of 13.42% is 220.3% above this industry median. Overall, Guangzhou Xiao Noodles Catering Management Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Guangzhou Xiao Noodles Catering Management Co's ROIC % compare to MCD and SBUX?
Guangzhou Xiao Noodles Catering Management Co's ROIC % of 13.42% can be compared against companies in the Restaurants industry. The industry median ROIC % is 4.19. Guangzhou Xiao Noodles Catering Management Co's value of 13.42% is 220.3% 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 Restaurants company?
The median ROIC % among Restaurants companies is 4.19, based on 355 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. Guangzhou Xiao Noodles Catering Management Co's current ROIC % of 13.42% is 220.3% 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 Guangzhou Xiao Noodles Catering Management Co and its competitors. For the Restaurants industry, the median ROIC % is 4.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangzhou Xiao Noodles Catering Management Co's current ROIC % is 13.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangzhou Xiao Noodles Catering Management Co stock overvalued right now?
Guangzhou Xiao Noodles Catering Management Co (HKSE:02408) has a current ROIC % of 13.42%. The current ROIC % is 13.42% and 220.3% above the Restaurants industry median of 4.19. Guangzhou Xiao Noodles Catering Management Co's overall GF Score™ is 18/100 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 Guangzhou Xiao Noodles Catering Management Co (HKSE:02408), the current ROIC % is 13.42% 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.
Guangzhou Xiao Noodles Catering Management Co Business Description
Guangzhou Xiao Noodles Catering Management Co Ltd is a Chinese noodle restaurants operator in China and operates the Xiao Noodles brand domestically and overseas. It provides a diverse array of its Sichuan and Chongqing dishes throughout the day, encompassing breakfast, afternoon tea, and late-night snacks. The company operates self-operated restaurants and franchised restaurants in the Chinese Mainland, Hong Kong SAR and in Singapore. The self-operated restaurant operations generate revenue from dine-in service and delivery business; and franchised management generates revenue from royalty and franchising income and provision of service, and sales of food ingredients and restaurant supplies.
18GF Score
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