Oman United Insurance CoOG (MUS:OUIC) ROC % : 0.00% (As of Mar. 2023)

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What is Oman United Insurance CoOG 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 %. Oman United Insurance CoOG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2023 was 0.00%.

As of today (2024-04-30), Oman United Insurance CoOG's WACC % is 0.00%. Oman United Insurance CoOG's ROC % is 0.00% (calculated using TTM income statement data). Oman United Insurance CoOG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Oman United Insurance CoOG ROC % Historical Data

The historical data trend for Oman United Insurance CoOG'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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Oman United Insurance CoOG ROC % Chart

Oman United Insurance CoOG Annual Data

Trend

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Dec21

ROC %

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Oman United Insurance CoOG Quarterly Data
	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Dec19	Mar20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Mar23
ROC %	Get a 7-Day Free Trial															-	-	-	-	-

Oman United Insurance CoOG ROC % Calculation

Oman United Insurance CoOG'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 )
=	0 * ( 1 - 15.22% )	/	( (89.9723	+	91.5567)	/ 2 )
=	0	/	90.7645
=	0.00 %

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 )
=	107.31	-	16.446	-	( 1.937	-	5% * 20.906 )
=	89.9723

	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 )
=	108.784	-	17.561	-	( 0.773	-	5% * 22.134 )
=	91.5567

Oman United Insurance CoOG's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2023 is calculated as:

	ROC % (Q: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2022 )	+	Invested Capital (Q: Mar. 2023 ))	/ count )
=	0 * ( 1 - 4.1% )	/	( (98.7727	+	100.03035)	/ 2 )
=	0	/	99.401525
=	0.00 %

where

	Invested Capital		(Q: Sep. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	111.535	-	9.541	-	( 3.471	-	5% * 4.994 )
=	98.7727

	Invested Capital		(Q: Mar. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	112.805	-	7.828	-	( 5.264	-	5% * 6.347 )
=	100.03035

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

Oman United Insurance CoOG (MUS:OUIC) 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, Oman United Insurance CoOG's WACC % is 0.00%. Oman United Insurance CoOG's ROC % is 0.00% (calculated using TTM income statement data). Oman United Insurance CoOG 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.

Oman United Insurance CoOG ROC % Related Terms

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Oman United Insurance CoOG (MUS:OUIC) Business Description

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Traded in Other Exchanges

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Address

Al Khuwair Street, P.O.Box 1522, Ruwi, Muscat, OMN, 112

Website

http://www.omanutd.com

Oman United Insurance Co SAOG is an insurance company. It is engaged in the underwriting of general and life and medical insurance business and in the repair and maintenance of motor vehicles. It operates in two segments General insurance and Life insurance. General insurance business includes insurance and re-insurance of motor, fire, general accident, marine cargo, hull, workmen compensation, engineering, and aviation. Life insurance relates to the insuring of the life of an individual, group life and group medical. It operates within the Sultanate of Oman with the highest revenue generated from General insurance segment.

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