AVI (Advantage Insurance) ROC %: -0.04% (As of Sep. 2017)


What is Advantage Insurance ROC %?

Advantage Insurance AVI ROC % is -0.04% as of Sep. 2017.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Advantage Insurance's annualized return on capital (ROC %) for the quarter that ended in Sep. 2017 was -0.04%.

As of today (2026-06-25), Advantage Insurance's WACC % is 0.00%. Advantage Insurance's ROC % is 0.00% (calculated using TTM income statement data). Advantage Insurance earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Advantage Insurance  (NYSE:AVI) 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, Advantage Insurance's WACC % is 0.00%. Advantage Insurance's ROC % is 0.00% (calculated using TTM income statement data). Advantage Insurance 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.

Advantage Insurance ROC % Related Terms

Advantage Insurance ROC % Historical Data

* Premium members only.

The historical data trend for Advantage Insurance'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.

Advantage Insurance ROC % Chart

Advantage Insurance Annual Data
Trend Dec15 Dec16
ROC %
1.49 0.80

Advantage Insurance Semi-Annual Data
Dec15 Sep16 Dec16 Sep17
ROC % 5.12 0.71 0.44 -0.04

Advantage Insurance ROC % Calculation

Advantage Insurance's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2016 is calculated as:

ROC % (A: Dec. 2016 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2015 ) + Invested Capital (A: Dec. 2016 ))/ count )
=6.849 * ( 1 - 2.2% )/( (433.32885 + 1248.28795)/ 2 )
=6.698322/840.8084
=0.80 %

where

Invested Capital(A: Dec. 2015 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=435.275 - 0.044 - ( 2.789 - 5% * 17.737 )
=433.32885

Invested Capital(A: Dec. 2016 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=1253.737 - 0.026 - ( 6.65 - 5% * 24.539 )
=1248.28795

Advantage Insurance's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2017 is calculated as:

ROC % (Q: Sep. 2017 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2016 ) + Invested Capital (Q: Sep. 2017 ))/ count )
=-0.548 * ( 1 - 0% )/( (1247.49745 + 1474.5355)/ 2 )
=-0.548/1361.016475
=-0.04 %

where

Invested Capital(Q: Dec. 2016 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=1253.737 - 0.026 - ( 6.65 - 5% * 8.729 )
=1247.49745

Invested Capital(Q: Sep. 2017 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=1478.278 - 0.005 - ( 3.985 - 5% * 4.95 )
=1474.5355

Note: The EBIT data used here is one times the annual (Sep. 2017) 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 -0.04% mean?
Advantage Insurance (AVI) has a ROC % of -0.04% as of Sep. 2017. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Advantage Insurance and its competitors.
Is Advantage Insurance's ROC % too high?
Advantage Insurance's current ROC % is -0.04%.
How does Advantage Insurance's ROC % compare to ?
Advantage Insurance's ROC % of -0.04% can be compared against companies in the Insurance industry. The industry median ROC % is 3.36. 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 3.36, based on 368 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 Advantage Insurance and its competitors. For the Insurance industry, the median ROC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advantage Insurance's current ROC % is -0.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advantage Insurance stock overvalued right now?
Advantage Insurance (AVI) has a current ROC % of -0.04%. The current ROC % is -0.04%. 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 Advantage Insurance (AVI), the current ROC % is -0.04% as of Sep. 2017. 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.

Advantage Insurance Business Description

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