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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 %. Solrom Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 15.00%.
As of today (2026-08-15), Solrom Holdings's WACC % is 4.41%. Solrom Holdings's ROIC % is 15.00% (calculated using TTM income statement data).
Solrom Holdings 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.
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, Solrom Holdings's WACC % is 4.41%. Solrom Holdings's ROIC % is 15.00% (calculated using TTM income statement data).
Solrom Holdings 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.
Solrom Holdings ROIC % Related Terms
Solrom Holdings ROIC % Historical Data
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The historical data trend for Solrom Holdings'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.
Solrom Holdings ROIC % Chart
Solrom Holdings Annual Data
Trend
Dec23
Dec24
Dec25
ROIC %
0.00
9.33
15.00
Solrom Holdings Semi-Annual Data
Dec23
Dec24
Dec25
ROIC %
0.00
9.33
15.00
XTAE:SLRM vs DELL, ANET, SNDK: ROIC % Comparison
For the Computer Hardware subindustry, Solrom 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.
Solrom Holdings ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Solrom Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Solrom Holdings's ROIC % falls into.
Note:
The Operating Income data used here is one times the 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.
Solrom Holdings (XTAE:SLRM) has a ROIC % of 15.00% 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 Solrom Holdings and its competitors.
Is Solrom Holdings' ROIC % too high?
Solrom Holdings' current ROIC % is 15.00%. The Hardware industry median ROIC % is 4.32. Solrom Holdings' value of 15.00% is 247.2% above this industry median. Overall, Solrom Holdings has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does Solrom Holdings' ROIC % compare to DELL and ANET?
Solrom Holdings' ROIC % of 15.00% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.32. Solrom Holdings' value of 15.00% is 247.2% 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 Hardware company?
The median ROIC % among Hardware companies is 4.32, based on 2,442 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. Solrom Holdings's current ROIC % of 15.00% is 247.2% 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 Solrom Holdings and its competitors. For the Hardware industry, the median ROIC % is 4.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solrom Holdings's current ROIC % is 15.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solrom Holdings stock overvalued right now?
Solrom Holdings (XTAE:SLRM) has a current ROIC % of 15.00%. The current ROIC % is 15.00% and 247.2% above the Hardware industry median of 4.32. Solrom Holdings' overall GF Score™ is 24/100 with 2 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 Solrom Holdings (XTAE:SLRM), the current ROIC % is 15.00% 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.
Solrom Holdings Ltd operates in the industrial-defense sector and is engaged, itself and through subsidiaries, in the development and manufacture of electronic and electromechanical systems, products, and equipment for military markets and defense companies, as well as in the development and manufacture of products based on QCL laser technology for military-defense applications. The group develops products for a variety of customers in the Israeli defense sector, which are integrated into national-level flagship projects currently being developed in the sea, land, air, and space.
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