Asia Insurance Co (KAR:ASIC) ROC % : 0.00% (As of . 20)

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What is Asia Insurance Co ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Asia Insurance Co's annualized return on capital (ROC %) for the quarter that ended in . 20 was 0.00%.

As of today (2024-06-04), Asia Insurance Co's WACC % is 0.00%. Asia Insurance Co's ROC % is 0.00% (calculated using TTM income statement data). Asia Insurance Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Asia Insurance Co ROC % Historical Data

The historical data trend for Asia Insurance Co'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.

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Asia Insurance Co ROC % Chart

Asia Insurance Co Annual Data

Trend

ROC %

Asia Insurance Co Quarterly Data

ROC %

Asia Insurance Co ROC % Calculation

Asia Insurance Co's annualized Return on Capital (ROC %) for the fiscal year that ended in . 20 is calculated as:

	ROC % (A: . 20 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (A: . 20 )	+	Invested Capital (A: . 20 ))	/ count )
=	* ( 1 - % )	/	( (	+	)	/ )
=		/
=	%

where

	Invested Capital		(A: . 20 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=		-		-	(	-	5% * )
=

	Invested Capital		(A: . 20 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=		-		-	(	-	5% * )
=

Asia Insurance Co's annualized Return on Capital (ROC %) for the quarter that ended in . 20 is calculated as:

	ROC % (Q: . 20 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: . 20 )	+	Invested Capital (Q: . 20 ))	/ count )
=	* ( 1 - % )	/	( (	+	)	/ )
=		/
=	%

where

	Invested Capital		(Q: . 20 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=		-		-	(	-	5% * )
=

	Invested Capital		(Q: . 20 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=		-		-	(	-	5% * )
=

Note: The EBIT data used here is four times the quarterly (. 20) data.

Asia Insurance Co (KAR:ASIC) 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, Asia Insurance Co's WACC % is 0.00%. Asia Insurance Co's ROC % is 0.00% (calculated using TTM income statement data). Asia Insurance Co 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.

Asia Insurance Co ROC % Related Terms

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Asia Insurance Co (KAR:ASIC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Asia Insurance Co Ltd (KAR:ASIC) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Main Ferozpur Road, 19 C/D Block-L, Gulberg III, Asia House, Lahore, PAK

Website

https://www.asiainsurance.com.pk

Asia Insurance Co Ltd is an insurance company is engaged in non- life insurance business that provides personal, commercial business, and special lines insurance. It offers a range of general insurance products such as fire, theft/burglary, money, marine, worker's compensation, and liability. The operating segments of the company are Fire and Property Damage, Marine Aviation and Transport, Motor, and Miscellaneous.

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