AFSIC.PFD (AmTrust Financial Services) ROC % : -0.40% (As of Sep. 2018)

View and export this data going back to 2014. Start your Free Trial

What is AmTrust Financial Services 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 %. AmTrust Financial Services's annualized return on capital (ROC %) for the quarter that ended in Sep. 2018 was -0.40%.

As of today (2024-12-15), AmTrust Financial Services's WACC % is 0.00%. AmTrust Financial Services's ROC % is 10.41% (calculated using TTM income statement data). AmTrust Financial Services generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

AmTrust Financial Services ROC % Historical Data

The historical data trend for AmTrust Financial Services'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.

AmTrust Financial Services ROC % Chart

AmTrust Financial Services Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

ROC %

Get a 7-Day Free Trial

3.78

4.09

3.64

2.73

-1.49

AmTrust Financial Services Quarterly Data
	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18
ROC %	Get a 7-Day Free Trial															-2.60	-4.08	12.21	-1.29	-0.40

AmTrust Financial Services ROC % Calculation

AmTrust Financial Services's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2017 is calculated as:

	ROC % (A: Dec. 2017 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2016 )	+	Invested Capital (A: Dec. 2017 ))	/ count )
=	-404.811 * ( 1 - 19.57% )	/	( (20545.1337	+	23023.23635)	/ 2 )
=	-325.5894873	/	21784.185025
=	-1.49 %

where

	Invested Capital		(A: Dec. 2016 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	22614.668	-	1775.129	-	( 567.771	-	5% * 5467.314 )
=	20545.1337

	Invested Capital		(A: Dec. 2017 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	25218.63	-	1723.102	-	( 763.121	-	5% * 5816.587 )
=	23023.23635

AmTrust Financial Services's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2018 is calculated as:

	ROC % (Q: Sep. 2018 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2018 )	+	Invested Capital (Q: Sep. 2018 ))	/ count )
=	-145.6 * ( 1 - 35.54% )	/	( (23304.055	+	23331.825)	/ 2 )
=	-93.85376	/	23317.94
=	-0.40 %

where

	Invested Capital		(Q: Jun. 2018 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	25761.3	-	1858.2	-	( 668.8	-	5% * 1395.1 )
=	23304.055

	Invested Capital		(Q: Sep. 2018 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	25689.9	-	1882.4	-	( 554.9	-	5% * 1584.5 )
=	23331.825

Note: The EBIT data used here is four times the quarterly (Sep. 2018) data.

AmTrust Financial Services (OTCPK:AFSIC.PFD) 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, AmTrust Financial Services's WACC % is 0.00%. AmTrust Financial Services's ROC % is 10.41% (calculated using TTM income statement data). AmTrust Financial Services generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

AmTrust Financial Services ROC % Related Terms

Thank you for viewing the detailed overview of AmTrust Financial Services's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

AmTrust Financial Services Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » AmTrust Financial Services Inc (OTCPK:AFSIC.PFD) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

AFSIN.PFD:USA AFSIM.PFD:USA AFSIP.PFD:USA AFSIB.PFD:USA AFSIA.PFD:USA

Address

59 Maiden Lane, 43rd Floor, New York, NY, USA, 10038

Website

https://www.amtrustfinancial.com

AmTrust Financial Services Inc is a multinational company that underwrites and provides property and casualty insurance products. The company specializes in coverage for small to mid-sized businesses, with a philosophical focus on niche diversity and low-hazard risk. AmTrust's business model strives to achieve its profit goals through geographic and product diversification. The company reports three business segments: Small Commercial Business, Specialty Risk and Extended Warranty, and Specialty Program. The vast majority of revenues is derived from its Small Commercial Business risk.