KAMCO Investment Company K.S.C.P (KUW:KAMCO) ROC % : 13.72% (As of Dec. 2023)

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What is KAMCO Investment Company K.S.C.P 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 %. KAMCO Investment Company K.S.C.P's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 13.72%.

As of today (2024-05-12), KAMCO Investment Company K.S.C.P's WACC % is 7.74%. KAMCO Investment Company K.S.C.P's ROC % is 4.13% (calculated using TTM income statement data). KAMCO Investment Company K.S.C.P earns returns that do not match up to its cost of capital. It will destroy value as it grows.

KAMCO Investment Company K.S.C.P ROC % Historical Data

The historical data trend for KAMCO Investment Company K.S.C.P'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.

KAMCO Investment Company K.S.C.P ROC % Chart

KAMCO Investment Company K.S.C.P Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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7.11

3.24

15.75

8.49

4.52

KAMCO Investment Company K.S.C.P Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															9.92	-1.28	7.75	-1.66	13.72

KAMCO Investment Company K.S.C.P ROC % Calculation

KAMCO Investment Company K.S.C.P'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
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	3.858 * ( 1 - 5.65% )	/	( (97.914	+	63.027)	/ 2 )
=	3.640023	/	80.4705
=	4.52 %

where

	Invested Capital		(A: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	129.447	-	0	-	( 64.87	-	max(0, 51.149	-	82.682	+	64.87	))
=	97.914

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	128.845	-	0	-	( 65.818	-	max(0, 7.76	-	82.944	+	65.818	))
=	63.027

KAMCO Investment Company K.S.C.P'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
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	10.984 * ( 1 - 2.27% )	/	( (93.456	+	63.027)	/ 2 )
=	10.7346632	/	78.2415
=	13.72 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	126.898	-	0	-	( 33.442	-	max(0, 0	-	49.854	+	33.442	))
=	93.456

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	128.845	-	0	-	( 65.818	-	max(0, 7.76	-	82.944	+	65.818	))
=	63.027

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

KAMCO Investment Company K.S.C.P (KUW:KAMCO) 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, KAMCO Investment Company K.S.C.P's WACC % is 7.74%. KAMCO Investment Company K.S.C.P's ROC % is 4.13% (calculated using TTM income statement data). KAMCO Investment Company K.S.C.P 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.

KAMCO Investment Company K.S.C.P ROC % Related Terms

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KAMCO Investment Company K.S.C.P (KUW:KAMCO) Business Description

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Address

Khalid Bin Waleed Street, Al-Shaheed Tower, P.O.Box 28873, Sharq, Safat, Kuwait City, KWT, 13149

Website

https://www.kamcoinvest.com

KAMCO Investment Company K.S.C.P is an investment banking company. Its activities include purchasing and investing in shares or bonds of the companies in real estate, industrial and agricultural sector, managing the funds of public and private institutions, a brokerage in lending and borrowing operations, provision of loans, dealing and trading in the foreign currency market, and undertaking operations related to securities trading such as purchase and sale of shares and bonds of companies. The company's segments include Investment banking and advisory, Asset management, Brokerage, and Strategic investments & corporate overheads. The company makes majority of its revenue from Asset management segment.

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