Emirates Insurance Co PSC (ADX:EIC) ROC % : 0.00% (As of Sep. 2023)

View and export this data going back to 2000. Start your Free Trial

What is Emirates Insurance Co PSC 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 %. Emirates Insurance Co PSC's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 0.00%.

As of today (2024-04-30), Emirates Insurance Co PSC's WACC % is 10.61%. Emirates Insurance Co PSC's ROC % is 0.00% (calculated using TTM income statement data). Emirates Insurance Co PSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Emirates Insurance Co PSC ROC % Historical Data

The historical data trend for Emirates Insurance Co PSC'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.

Emirates Insurance Co PSC ROC % Chart

Emirates Insurance Co PSC Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

Get a 7-Day Free Trial

Emirates Insurance Co PSC Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROC %	Get a 7-Day Free Trial															-	-	-	-	-

Emirates Insurance Co PSC ROC % Calculation

Emirates Insurance Co PSC's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	0 * ( 1 - 0% )	/	( (2798.95655	+	2669.75655)	/ 2 )
=	0	/	2734.35655
=	0.00 %

where

	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 )
=	2966.202	-	15.574	-	( 180.08	-	5% * 568.171 )
=	2798.95655

	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 )
=	2787.266	-	14.408	-	( 127.748	-	5% * 492.931 )
=	2669.75655

Emirates Insurance Co PSC's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	0 * ( 1 - 0% )	/	( (2071.8806	+	2219.206)	/ 2 )
=	0	/	2145.5433
=	0.00 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	2145.273	-	11.739	-	( 71.824	-	5% * 203.412 )
=	2071.8806

	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 )
=	2311.894	-	41.531	-	( 65.716	-	5% * 291.18 )
=	2219.206

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

Emirates Insurance Co PSC (ADX:EIC) 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, Emirates Insurance Co PSC's WACC % is 10.61%. Emirates Insurance Co PSC's ROC % is 0.00% (calculated using TTM income statement data). Emirates Insurance Co PSC 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.

Emirates Insurance Co PSC ROC % Related Terms

Thank you for viewing the detailed overview of Emirates Insurance Co PSC's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Emirates Insurance Co PSC (ADX:EIC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Emirates Insurance Co PSC (ADX:EIC) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Emirates Insurance Co Building, Al Zahiya (Tourist Club Area), P.O.Box 3856, Abu Dhabi, ARE

Website

https://www.eminsco.com

Emirates Insurance Co PSC is an insurance company operating through two segments namely Underwriting of General Insurance Business and Investments. The Underwriting of general insurance business - incorporating all classes of general insurance such as fire, marine, motor, general accident, and miscellaneous. The Investments segments include activities of investments in marketable equity securities and investment funds, bonds, term deposits with banks and investment properties, and other securities. The firm derives a majority of its revenue from the commission, dividend, and interest income.