AOREF (American Overseas Group) ROC %: 0.00% (As of Jun. 2009)


What is American Overseas Group ROC %?

American Overseas Group AOREF ROC % is 0.00% as of Jun. 2009.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. American Overseas Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2009 was 0.00%.

As of today (2026-06-24), American Overseas Group's WACC % is 0.00%. American Overseas Group's ROC % is 0.00% (calculated using TTM income statement data). American Overseas Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

American Overseas Group  (OTCPK:AOREF) 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, American Overseas Group's WACC % is 0.00%. American Overseas Group's ROC % is 0.00% (calculated using TTM income statement data). American Overseas 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.

American Overseas Group ROC % Related Terms

American Overseas Group ROC % Historical Data

* Premium members only.

The historical data trend for American Overseas 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.

American Overseas Group ROC % Chart

American Overseas Group Annual Data
Trend Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08
ROC %
Get a 7-Day Free Trial 0.00 0.00 0.00 0.00 0.00

American Overseas Group Quarterly Data
Dec03 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09
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 0.00 0.00 0.00 0.00 0.00

American Overseas Group ROC % Calculation

American Overseas Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2008 is calculated as:

ROC % (A: Dec. 2008 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2007 ) + Invested Capital (A: Dec. 2008 ))/ count )
=0 * ( 1 - % )/( (840.44665 + 543.2735)/ 2 )
=0/691.860075
=0.00 %

where

Invested Capital(A: Dec. 2007 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=860.265 - 4.696 - ( 12.326 - 5% * -55.927 )
=840.44665

Invested Capital(A: Dec. 2008 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=574.282 - 27.808 - ( 8.763 - 5% * 111.25 )
=543.2735

American Overseas Group's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2009 is calculated as:

ROC % (Q: Jun. 2009 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2009 ) + Invested Capital (Q: Jun. 2009 ))/ count )
=0 * ( 1 - % )/( (687.6483 + 455.735)/ 2 )
=0/571.69165
=0.00 %

where

Invested Capital(Q: Mar. 2009 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=700.944 - 10.643 - ( 3.893 - 5% * 24.806 )
=687.6483

Invested Capital(Q: Jun. 2009 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=467.736 - 9.773 - ( 2.639 - 5% * 8.22 )
=455.735

Note: The EBIT data used here is four times the quarterly (Jun. 2009) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of 0.00% mean?
American Overseas Group (AOREF) has a ROC % of 0.00% as of Jun. 2009. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on American Overseas Group and its competitors.
Is American Overseas Group's ROC % too high?
American Overseas Group's current ROC % is 0.00%.
How does American Overseas Group's ROC % compare to OXBR and BCRH?
American Overseas Group's ROC % of 0.00% can be compared against companies in the Insurance industry. The industry median ROC % is 3.37. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Insurance company?
The median ROC % among Insurance companies is 3.37, based on 370 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on American Overseas Group and its competitors. For the Insurance industry, the median ROC % is 3.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Overseas Group's current ROC % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Overseas Group stock overvalued right now?
American Overseas Group (AOREF) has a current ROC % of 0.00%. The current ROC % is 0.00%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For American Overseas Group (AOREF), the current ROC % is 0.00% as of Jun. 2009. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

American Overseas Group Business Description

Address Cumberland House 6th Floor 1 Victoria Street, Hamilton, BMU, HM 11
American Overseas Group Ltd is a provider of insurance services. Its business consists of U.S.-based property and casualty insurance companies that provide non-standard auto insurance through specialty managing general agents; A Barbados domiciled affiliate reinsurance company that assumes and reinsures a small portion of the U.S. sourced nonstandard auto business; and U.S based management services company. The company is organized into two operating segments: property/casualty insurance/reinsurance and corporate/other.