Nobleoak Life (ASX:NOL) ROC % : 0.00% (As of Dec. 2023)

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What is Nobleoak Life 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 %. Nobleoak Life's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 0.00%.

As of today (2024-05-01), Nobleoak Life's WACC % is 12.33%. Nobleoak Life's ROC % is 0.00% (calculated using TTM income statement data). Nobleoak Life earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nobleoak Life ROC % Historical Data

The historical data trend for Nobleoak Life'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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Nobleoak Life ROC % Chart

Nobleoak Life Annual Data

Trend

Jun22

Jun23

ROC %

Nobleoak Life Semi-Annual Data
	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial			6.99	-	10.60	-	-

Nobleoak Life ROC % Calculation

Nobleoak Life's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	0 * ( 1 - 29.55% )	/	( (98.64045	+	132.81785)	/ 2 )
=	0	/	115.72915
=	0.00 %

where

	Invested Capital		(A: Jun. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	148.513	-	28.639	-	( 30.263	-	5% * 180.589 )
=	98.64045

	Invested Capital		(A: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	341.554	-	168.026	-	( 50.415	-	5% * 194.097 )
=	132.81785

Nobleoak Life's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	0 * ( 1 - 33.35% )	/	( (128.0992	+	264.26645)	/ 2 )
=	0	/	196.182825
=	0.00 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	341.554	-	168.026	-	( 50.415	-	5% * 99.724 )
=	128.0992

	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 )
=	403.879	-	102.441	-	( 45.916	-	5% * 174.889 )
=	264.26645

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) data.

Nobleoak Life (ASX:NOL) 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, Nobleoak Life's WACC % is 12.33%. Nobleoak Life's ROC % is 0.00% (calculated using TTM income statement data). Nobleoak Life 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.

Nobleoak Life ROC % Related Terms

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Nobleoak Life (ASX:NOL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Nobleoak Life Ltd (ASX:NOL) » Definitions » ROC %

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Traded in Other Exchanges

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Address

44 Market Street, Level 4, Sydney, NSW, AUS, 2000

Website

https://www.nobleoak.com.au

Nobleoak Life Ltd is a registered friendly society providing life insurance. Its insurance options include Life Insurance, Income Protection Insurance, Trauma Insurance, TPD Insurance, and Business Expenses Insurance. The company's segment includes Direct; Strategic Partnerships and Genus. It generates maximum revenue from the Direct segment.

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