ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. J-Long Group's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2025 was 48.53%.
As of today (2026-06-24), J-Long Group's WACC % is 9.86%. J-Long Group's ROIC % is 25.96% (calculated using TTM income statement data).
J-Long Group 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.
J-Long Group (NAS:JL) 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, J-Long Group's WACC % is 9.86%. J-Long Group's ROIC % is 25.96% (calculated using TTM income statement data).
J-Long Group 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.
J-Long Group ROIC % Related Terms
J-Long Group ROIC % Historical Data
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The historical data trend for J-Long Group'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.
For the Apparel Manufacturing subindustry, J-Long 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.
J-Long Group ROIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, J-Long Group's ROIC % distribution charts can be found below:
* The bar in red indicates where J-Long Group'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.
J-Long Group (JL) has a ROIC % of 48.53% 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 J-Long Group and its competitors.
Is J-Long Group's ROIC % too high?
J-Long Group's current ROIC % is 48.53%. The Manufacturing - Apparel & Accessories industry median ROIC % is 2.91. J-Long Group's value of 48.53% is 1567.7% above this industry median. Overall, J-Long Group has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does J-Long Group's ROIC % compare to NCI and XELB?
J-Long Group's ROIC % of 48.53% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROIC % is 2.91. J-Long Group's value of 48.53% is 1567.7% 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 Manufacturing - Apparel & Accessories company?
The median ROIC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,049 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. J-Long Group's current ROIC % of 48.53% is 1567.7% 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 J-Long Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROIC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. J-Long Group's current ROIC % is 48.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is J-Long Group stock overvalued right now?
J-Long Group (JL) has a current ROIC % of 48.53%. The current ROIC % is 48.53% and 1567.7% above the Manufacturing - Apparel & Accessories industry median of 2.91. J-Long Group's overall GF Score™ is 24/100. 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 J-Long Group (JL), the current ROIC % is 48.53% 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.
J-Long Group Ltd is an established distributor in Hong Kong of reflective and non-reflective garment trims including, among others, heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers and drawcords. It also offers a wide range of apparel solution services to cater to its customers' needs for reflective and non-reflective garment trims, ranging from market trend analysis, product design and development and production to quality control. The company operates in Asia (excluding other than Hong Kong and China), Hong Kong, China, and Others (Non-Asian).
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