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Assurant (Assurant) ROC % : 3.54% (As of Mar. 2024)


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What is Assurant 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 %. Assurant's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 3.54%.

As of today (2024-05-24), Assurant's WACC % is 6.58%. Assurant's ROC % is 2.95% (calculated using TTM income statement data). Assurant earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Assurant ROC % Historical Data

The historical data trend for Assurant'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.

Assurant ROC % Chart

Assurant Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.00 1.54 1.98 1.24 2.50

Assurant Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.90 2.48 2.95 2.81 3.54

Assurant ROC % Calculation

Assurant'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
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=914.8 * ( 1 - 20.36% )/( (28739.95 + 29602.28)/ 2 )
=728.54672/29171.115
=2.50 %

where

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 )
=33117.3 - 3350.3 - ( 1536.7 - 5% * 10193 )
=28739.95

Invested Capital(A: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=33635.2 - 2962.1 - ( 1627.4 - 5% * 11131.6 )
=29602.28

Assurant's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=1278.8 * ( 1 - 19.29% )/( (29194.855 + 29183.105)/ 2 )
=1032.11948/29188.98
=3.54 %

where

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=33635.2 - 2962.1 - ( 1627.4 - 5% * 2983.1 )
=29194.855

Invested Capital(Q: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=33225.4 - 2904.4 - ( 1281.9 - 5% * 2880.1 )
=29183.105

Note: The EBIT data used here is four times the quarterly (Mar. 2024) data.

* 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.


Assurant  (NYSE:AIZ) 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, Assurant's WACC % is 6.58%. Assurant's ROC % is 2.95% (calculated using TTM income statement data). Assurant 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.


Assurant ROC % Related Terms

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


Assurant (Assurant) Business Description

Traded in Other Exchanges
Address
260 Interstate North Circle SE, Atlanta, GA, USA, 30339
Assurant Inc offers a range of property-casualty, health, employee benefit, and warranty insurance to a client base made up of individuals and institutions. Its segments are Global Housing, Global Lifestyle, Corporate and Other. Global Housing provides lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance; renters insurance and related products; and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products. Global Lifestyle, the key revenue-generating segment, provides mobile device solutions and extended service products and related services for mobile devices, consumer electronics and appliances; vehicle protection; and credit protection and other insurance products.
Executives
Jay Rosenblum officer: EVP and CLO C/O ASSURANT, INC., 28 LIBERTY ST, 41ST FL., NEW YORK NY 10005
Dimitry Dirienzo officer: SVP, CAO, Controller C/O ASSURANT, INC., 28 LIBERTY ST. 41 F., NEW YORK NY 10005
Richard S Dziadzio officer: EVP, CFO, and Treasurer C/O ALLIANCE CAPITAL, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Francesca Luthi officer: EVP, CAO 1180 NORTH TOWN CENTER DRIVE, SUITE 100, LAS VEGAS NV 89144
Robert Lonergan officer: EVP, other: Chief Strategy Officer C/O ASSURANT, INC.,28 LIBERTY STREET, 41ST FLOOR, NEW YORK NY 10005
Rajiv Basu director C/O ASSURANT, INC., 260 INTERSTATE NORTH CIRCLE, S.E., ATLANTA GA 30339
Sari Beth Granat director C/O MARKIT LTD, 4TH FL, ROPEMAKER PLACE, 25 ROPEMAKER STREET, LONDON X0 EC2Y 9LY
Keith Meier officer: EVP, COO C/O ASSURANT, INC., 55 BROADWAY, SUITE 2901, NEW YORK NY 10006
Alan B. Colberg officer: EVP, Marketing & Bus. Dev. ASSURANT, INC., ONE CHASE MANHATTAN PLAZA, 41 FL., NEW YORK NY 10005
Gene Mergelmeyer officer: Executive Vice President, other: Pres., Assur. Spec. Property ASSURANT, INC., 28 LIBERTY ST. 41 FLOOR, NEW YORK NY 10005
Carter J Braxton Ii director C/O T-MOBILE US, INC., 12920 SE 38TH STREET, BELLEVUE WA 98006
Charles John Koch director CITIZENS FINANCIAL GROUP, INC., 600 WASHINGTON BLVD., CS119N, STAMFORD CT 06901
Tammy L. Schultz officer: EVP C/O ASSURANT, INC.,28 LIBERTY STREET, 41ST FLOOR, NEW YORK NY 10005
Paget Leonard Alves director SPRINT NEXTEL, 6200 SPRINT PARKWAY KSOPHF0410 - 4A403, OVERLAND PARK KS 66251
Ognjen Redzic director C/O ASSURANT, INC., 28 LIBERTY STREET, 41ST FL., NEW YORK NY 10005

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