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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 %. Golden Leaf International Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -42.04%.
As of today (2026-08-15), Golden Leaf International Group's WACC % is 10.32%. Golden Leaf International Group's ROIC % is -15.52% (calculated using TTM income statement data).
Golden Leaf International Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Golden Leaf International Group (HKSE:08549) 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, Golden Leaf International Group's WACC % is 10.32%. Golden Leaf International Group's ROIC % is -15.52% (calculated using TTM income statement data).
Golden Leaf International Group 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.
Golden Leaf International Group ROIC % Related Terms
Golden Leaf International Group 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.
Golden Leaf International Group ROIC % Chart
Golden Leaf International Group Annual Data
Trend
Mar24
Mar25
Mar26
ROIC %
23.30
28.61
-14.64
Golden Leaf International Group Semi-Annual Data
Mar24
Sep24
Mar25
Sep25
Mar26
ROIC %
0.00
31.82
25.81
18.26
-42.04
HKSE:08549 vs PWR, FIX, EME: ROIC % Comparison
For the Engineering & Construction subindustry, Golden Leaf International Group'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.
Golden Leaf International Group ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Golden Leaf International Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Golden Leaf International Group's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Golden Leaf International Group (HKSE:08549) has a ROIC % of -42.04% 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 Golden Leaf International Group and its competitors.
Is Golden Leaf International Group's ROIC % too high?
Golden Leaf International Group's current ROIC % is -42.04%. Overall, Golden Leaf International Group has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Golden Leaf International Group's ROIC % compare to PWR and FIX?
Golden Leaf International Group's ROIC % of -42.04% can be compared against companies in the Construction industry. The industry median ROIC % is 4.75. 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 Construction company?
The median ROIC % among Construction companies is 4.75, based on 1,763 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. 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 Golden Leaf International Group and its competitors. For the Construction industry, the median ROIC % is 4.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Golden Leaf International Group's current ROIC % is -42.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Golden Leaf International Group stock overvalued right now?
Golden Leaf International Group (HKSE:08549) has a current ROIC % of -42.04%. The current ROIC % is -42.04%. Golden Leaf International Group'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 Golden Leaf International Group (HKSE:08549), the current ROIC % is -42.04% 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.
Golden Leaf International Group Ltd is an established contractor in Hong Kong engaging in E&M engineering works. The company specializes in the supply, installation and maintenance of HVAC systems; electrical systems; and plumbing and drainage systems, on a project-by-project basis. E&M engineering covers design, construction and installation, testing and commissioning, and operation and maintenance of heating, air-conditioning and mechanical ventilation systems; fire protection systems; plumbing and drainage systems; and electrical and ultra - low voltage system for general buildings, and specialised buildings such as data centres, and healthcare facilities. The group's revenue are all derived from Hong Kong.
18GF Score
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