Unum Group (Unum Group) ROC %

: 2.40% (As of Dec. 2023)

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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Unum Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 2.40%.

As of today (2024-04-19), Unum Group's WACC % is 4.80%. Unum Group's ROC % is 2.33% (calculated using TTM income statement data). Unum Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Unum Group ROC % Historical Data

The historical data trend for Unum Group's ROC % 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.

* Premium members only.

Unum Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

1.92

1.37

1.59

2.36

2.30

Unum Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %																2.14	2.57	2.78	1.58	2.40

Unum Group ROC % Calculation

Unum Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	1834.9 * ( 1 - 21.72% )	/	( (61432.15	+	63534.635)	/ 2 )
=	1436.35972	/	62483.3925
=	2.30 %

where

	Invested Capital		(A: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	61148.5	-	190.9	-	( 119.2	-	5% * 11875 )
=	61432.15

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	63255.2	-	190	-	( 146	-	5% * 12308.7 )
=	63534.635

Unum Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	1911.6 * ( 1 - 22.88% )	/	( (59674.85	+	63075.385)	/ 2 )
=	1474.22592	/	61375.1175
=	2.40 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	59954.5	-	267.2	-	( 165.9	-	5% * 3069 )
=	59674.85

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	63255.2	-	190	-	( 146	-	5% * 3123.7 )
=	63075.385

Note: The EBIT data used here is four times the quarterly (Dec. 2023) data.

Unum Group (NYSE:UNM) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Unum Group's WACC % is 4.80%. Unum Group's ROC % is 2.33% (calculated using TTM income statement data). Unum 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 %, ROC % 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.

Unum Group ROC % Related Terms

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Unum Group (Unum Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Unum Group (NYSE:UNM) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

UUM:Germany UUM:Germany

Address

1 Fountain Square, Chattanooga, TN, USA, 37402

Website

https://www.unum.com

Unum Group is a provider of group and individual income protection insurance products in the United States, the United Kingdom, Poland, and other countries. It is the largest domestic disability insurer, with the majority of premiums generated from employer plans. The company also offers a complementary portfolio of other insurance products, including long-term care insurance, life insurance, and employer- and employee-paid group benefits. It has the following operating business segments: Unum US, Unum International, and Colonial Life. The majority of the revenue is earned from the Unum US segment. The firm markets its products primarily through brokers.

Executives

Puneet Bhasin	officer: Chief Info & Digital Officer	1001 FANNIN, SUITE 4000, HOUSTON TX 77002
Christopher W Pyne	officer: EVP, Group Benefits	1 FOUNTAIN SQUARE, LAW DEPT. (7N200), CHATTANOOGA TN 37402
Timothy Gerald Arnold	officer: EVP, President & CEO, Colonial	1 FOUNTAIN SQUARE, CHATTANOOGA TN 37402
Mojgan M Lefebvre	director	385 WASHINGTON STREET, ST. PAUL MN 55102
Rice Walter Lynn Jr	officer: SVP, Chief Accounting Officer	1 FOUNTAIN SQUARE, CHATTANOOGA TN 37402-1307
Michael Q Simonds	officer: EVP, President & CEO, Unum US	1 FOUNTAIN SQUARE, LAW DEPT. (7S730), CHATTANOOGA TN 37402
Gloria C Larson	director	UNUM GROUP, 1 FOUNTAIN SQUARE, CHATTANOOGA TN 37402
Lisa G Iglesias	officer: EVP, General Counsel	1 FOUNTAIN SQUARE, LAW DEPT. 7S730, CHATTANOOGA TN 37402
Richard P Mckenney	officer: Executive Vice President	UNUM GROUP, 1 FOUNTAIN SQUARE, CHATTANOOGA TN 37402
Cherie Pashley	officer: SVP, Chief Accounting Officer	1 FOUNTAIN SQUARE, LAW DEPT. 7N200, CHATTANOOGA TN 37402
Gale V. King	director	123 SOUTH FRONT STREET, MEMPHIS TN 38103
Francis Shammo	director	1 FOUNTAIN SQUARE, CHATTANOOGA TN 37402
Timothy F Keaney	director	1 FOUNTAIN SQUARE, LAW DEPT. 7S730, CHATTANOOGA TN 37402
Mark Paul Till	officer: EVP & CEO Designate, Unum Intl	1 FOUNTAIN SQUARE, LAW DEPARTMENT (E7N200), CHATTANOOGA TN 37402
Martha Leiper	officer: EVP, Chief Investment Officer	9800 FREDERICKSBURG ROAD, SAN ANTONIO TX 78288