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First Insurance Co (AMM:FINS) ROC % : 0.00% (As of Dec. 2024)


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What is First Insurance Co 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 %. First Insurance Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 0.00%.

As of today (2025-03-17), First Insurance Co's WACC % is 10.08%. First Insurance Co's ROC % is 0.00% (calculated using TTM income statement data). First Insurance Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


First Insurance Co ROC % Historical Data

The historical data trend for First Insurance Co'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.

First Insurance Co ROC % Chart

First Insurance Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 1.25 5.96 -

First Insurance Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 - - - - -

First Insurance Co ROC % Calculation

First Insurance Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=0 * ( 1 - 19.72% )/( (65.28135 + 55.5554)/ 2 )
=0/60.418375
=0.00 %

where

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 )
=63.18 - -0.179 - ( 0 - 5% * 38.447 )
=65.28135

Invested Capital(A: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=68.466 - 0.121 - ( 14.743 - 5% * 39.068 )
=55.5554

First Insurance Co's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=0 * ( 1 - 16.93% )/( (45.332 + 54.23565)/ 2 )
=0/49.783825
=0.00 %

where

Invested Capital(Q: Sep. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=61.564 - 0.103 - ( 16.61 - 5% * 9.62 )
=45.332

Invested Capital(Q: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=68.466 - 0.121 - ( 14.743 - 5% * 12.673 )
=54.23565

Note: The EBIT data used here is four times the quarterly (Dec. 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.


First Insurance Co  (AMM:FINS) 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, First Insurance Co's WACC % is 10.08%. First Insurance Co's ROC % is 0.00% (calculated using TTM income statement data). First Insurance Co 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.


First Insurance Co ROC % Related Terms

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First Insurance Co Business Description

Traded in Other Exchanges
N/A
Address
King Abdullah II Street, Building No. 95, P.O. Box 189, Khalda - Dabouq Circle, Near the Medical City, Amman, JOR, 11822
First Insurance Co is a Jordan-based insurance company. It provides insurance on fire, natural hazards, accidents, medical and marine vehicles, cargo during transportation and other damage to properties, a liability of land-based vehicles, general liability, assistance insurance, and others. Its products include motor insurance, medical insurance, life insurance, and travel insurance among others; while corporate products include marine insurance, property insurance, and cash insurance among others.