Allianz SE (BUD:ALLIANZ) ROC % : 1.14% (As of Sep. 2024)

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What is Allianz SE 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 %. Allianz SE's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 1.14%.

As of today (2024-12-14), Allianz SE's WACC % is 5.53%. Allianz SE's ROC % is 0.58% (calculated using TTM income statement data). Allianz SE earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Allianz SE ROC % Historical Data

The historical data trend for Allianz SE'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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Allianz SE ROC % Chart

Allianz SE Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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0.97

0.82

0.73

0.77

Allianz SE Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															0.97	-	1.14	-	1.14

Allianz SE ROC % Calculation

Allianz SE's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	0 * ( 1 - 22.02% )	/	( (377009023.9495	+	408212657.2178)	/ 2 )
=	0	/	392610840.58365
=	0.00 %

where

	Invested Capital		(A: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	385962124.371	-	1922599.841	-	( 8307759.289	-	5% * 25545174.17 )
=	377009023.9495

	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 )
=	417397339.691	-	2213555.006	-	( 9157766.595	-	5% * 43732782.556 )
=	408212657.2178

Allianz SE's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	6417247.312 * ( 1 - 25.84% )	/	( (404629720.60625	+	430914635.6669)	/ 2 )
=	4759030.6065792	/	417772178.13657
=	1.14 %

where

	Invested Capital		(Q: Jun. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	418367052.711	-	2453577.682	-	( 11757896.262	-	5% * 9482836.785 )
=	404629720.60625

	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 )
=	443525032.172	-	0	-	( 13375890.459	-	5% * 15309879.078 )
=	430914635.6669

Note: The EBIT data used here is four times the quarterly (Sep. 2024) data.

Allianz SE (BUD:ALLIANZ) 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, Allianz SE's WACC % is 5.53%. Allianz SE's ROC % is 0.58% (calculated using TTM income statement data). Allianz SE 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.

Allianz SE ROC % Related Terms

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Allianz SE Business Description

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Address

Koniginstrasse 28, Munich, BY, DEU, 80802

Website

https://www.allianz.com

Allianz was founded as a transport and accident insurance firm in 1890 by Carl von Thieme and Wilhelm von Finck, the founders of Munich Re. It took the company five years to expand the business into Europe and North America and subsequently list in Berlin. After World War I, individuals were confronted with the loss of wealth, life, and security and Allianz founded a life business in the 1920s. In the years after World War II, Allianz's foreign assets were seized and it lost its foreign business. By relocating its head office from Berlin to Munich in 1948, Allianz began the long road of rebuilding its domestic business. It took 20 years for Allianz to reacquire its prior foreign interests, starting in Austria. It became the largest European insurer in the postwar boom era.

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