Euro Arab Insurance Group (AMM:AMMI) ROC % : 0.00% (As of . 20)

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What is Euro Arab Insurance Group 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 %. Euro Arab Insurance Group's annualized return on capital (ROC %) for the quarter that ended in . 20 was 0.00%.

As of today (2024-12-14), Euro Arab Insurance Group's WACC % is 0.00%. Euro Arab Insurance Group's ROC % is 0.00% (calculated using TTM income statement data). Euro Arab Insurance Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Euro Arab Insurance Group ROC % Historical Data

The historical data trend for Euro Arab Insurance Group'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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Euro Arab Insurance Group ROC % Chart

Euro Arab Insurance Group Annual Data

Trend

ROC %

Euro Arab Insurance Group Semi-Annual Data

ROC %

Euro Arab Insurance Group ROC % Calculation

Euro Arab Insurance Group's annualized Return on Capital (ROC %) for the fiscal year that ended in . 20 is calculated as:

	ROC % (A: . 20 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (A: . 20 )	+	Invested Capital (A: . 20 ))	/ count )
=	* ( 1 - % )	/	( (	+	)	/ )
=		/
=	%

where

	Invested Capital		(A: . 20 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=		-		-	(	-	5% * )
=

	Invested Capital		(A: . 20 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=		-		-	(	-	5% * )
=

Euro Arab Insurance Group's annualized Return on Capital (ROC %) for the quarter that ended in . 20 is calculated as:

	ROC % (Q: . 20 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: . 20 )	+	Invested Capital (Q: . 20 ))	/ count )
=	* ( 1 - % )	/	( (	+	)	/ )
=		/
=	%

where

	Invested Capital		(Q: . 20 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=		-		-	(	-	5% * )
=

	Invested Capital		(Q: . 20 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=		-		-	(	-	5% * )
=

Note: The EBIT data used here is one times the annual (. 20) data.

Euro Arab Insurance Group (AMM:AMMI) 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, Euro Arab Insurance Group's WACC % is 0.00%. Euro Arab Insurance Group's ROC % is 0.00% (calculated using TTM income statement data). Euro Arab Insurance Group 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.

Euro Arab Insurance Group ROC % Related Terms

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Euro Arab Insurance Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Euro Arab Insurance Group (AMM:AMMI) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Shareif Naser Bin Jameel Street, PO Box: 1435, Complex No. 41, Al-Shemesani, Amman, JOR, 11953

Website

https://www.euroarabins.com

Euro Arab Insurance Group operates in the insurance industry. It conducts all types of insurance - Life, Motor, Marine, Transport, Fire, and other damages to properties, and medical liability. Geographically, the company operates within the Kingdom, Middle East countries, Asia, Europe, Near East and America.

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