National Security Group (National Security Group) ROC % : 3.06% (As of Mar. 2022)

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What is National Security Group 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 %. National Security Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2022 was 3.06%.

As of today (2024-05-06), National Security Group's WACC % is 0.00%. National Security Group's ROC % is 0.00% (calculated using TTM income statement data). National Security Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

National Security Group ROC % Historical Data

The historical data trend for National Security 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.

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National Security Group ROC % Chart

National Security Group Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROC %

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0.14

1.18

3.55

-5.69

0.78

National Security Group Quarterly Data
	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22
ROC %	Get a 7-Day Free Trial															2.49	-2.65	-1.36	4.43	3.06

National Security Group ROC % Calculation

National Security Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	1.276 * ( 1 - 14.91% )	/	( (133.98545	+	144.9595)	/ 2 )
=	1.0857484	/	139.472475
=	0.78 %

where

	Invested Capital		(A: Dec. 2020 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	150.54	-	0	-	( 19.887	-	5% * 66.649 )
=	133.98545

	Invested Capital		(A: Dec. 2021 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	151.683	-	0	-	( 10.034	-	5% * 66.21 )
=	144.9595

National Security Group's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2022 is calculated as:

	ROC % (Q: Mar. 2022 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2021 )	+	Invested Capital (Q: Mar. 2022 ))	/ count )
=	5.848 * ( 1 - 26.77% )	/	( (142.4982	+	137.20965)	/ 2 )
=	4.2824904	/	139.853925
=	3.06 %

where

	Invested Capital		(Q: Dec. 2021 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	151.683	-	0	-	( 10.034	-	5% * 16.984 )
=	142.4982

	Invested Capital		(Q: Mar. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	149.339	-	0	-	( 12.941	-	5% * 16.233 )
=	137.20965

Note: The EBIT data used here is four times the quarterly (Mar. 2022) data.

National Security Group (NAS:NSEC) 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, National Security Group's WACC % is 0.00%. National Security Group's ROC % is 0.00% (calculated using TTM income statement data). National Security 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.

National Security Group ROC % Related Terms

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National Security Group (National Security Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » National Security Group Inc (NAS:NSEC) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

661 East Davis Street, P.O. Box 703, Elba, AL, USA, 36323

Website

https://www.nationalsecuritygroup.com

National Security Group Inc is an insurance holding company. The company operates through two segments namely Property and casualty insurance, and Life insurance. Its Property and casualty segment primarily write personal lines dwelling coverage including dwelling fire and windstorm, homeowners and mobile homeowners lines of insurance and the company's Life insurance segment offers a basic line of life and health and accident insurance products in around seven states. Geographically, it operates in the region of the United States and derives most of the revenue from the Property and casualty insurance segment.

Executives

Fred Jr Clark	director	661 EAST DAVIS ELBA AL 36323
Andrew J. Abernathey	10 percent owner	3523 45TH STREET SOUTH SUITE 100 FARGO ND 58104
Brian R Mcleod	officer: Chief Financial Officer	661 EAST DAVIS ELBA AL 36323
Donald S Pittman	director	661 EAST DAVIS ELBA AL 36323
Charles B Arnold	director	2161 MILL GARDEN RUN BUFORD GA 30519
Elizabeth B Crawford	director	4100 CRESCENT ROAD BIRMINGHAM AL 35222
Carolyn E Brunson	10 percent owner	661 EAST DAVIS ELBA AL 36323
Meridian Investments, Llc	10 percent owner	819 30TH AVENUE SOUTH SUITE 206A MOORHEAD MN 56560
Brunson William L Jr	officer: Chief Executive Officer	661 EAST DAVIS ELBA AL 36323
Paul C Wesch	director	661 EAST DAVIS ELBA AL 36323
L Brunson White	director	661 EAST DAVIS ELBA AL 36323
Drayton Jr Nabers	director	605 RICHARD ARRINGTON JR BLVD N, BIRMINGHAM AL 35203-2707
O Neil Frank B	director
J R Brunson	director	661 EAST DAVIS ELBA AL 36323
Fleming G Brooks	director