Meghna Insurance Co (DHA:MEGHNAINS) ROC % : 0.00% (As of . 20)

View and export this data going back to 2022. Start your Free Trial

What is Meghna 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 %. Meghna Insurance Co's annualized return on capital (ROC %) for the quarter that ended in . 20 was 0.00%.

As of today (2024-12-14), Meghna Insurance Co's WACC % is 0.00%. Meghna Insurance Co's ROC % is 0.00% (calculated using TTM income statement data). Meghna Insurance Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Meghna Insurance Co ROC % Historical Data

The historical data trend for Meghna 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.

Meghna Insurance Co ROC % Chart

Meghna Insurance Co Annual Data

Trend

ROC %

Meghna Insurance Co Semi-Annual Data

ROC %

Meghna Insurance Co ROC % Calculation

Meghna Insurance Co's annualized Return on Capital (ROC %) for the fiscal year that ended in . 20 is calculated as:

	ROC % (A: . 20 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (A: . 20 )	+	Invested Capital (A: . 20 ))	/ count )
=	* ( 1 - % )	/	( (	+	)	/ )
=		/
=	%

where

	Invested Capital		(A: . 20 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=		-		-	(	-	5% * )
=

	Invested Capital		(A: . 20 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=		-		-	(	-	5% * )
=

Meghna Insurance Co's annualized Return on Capital (ROC %) for the quarter that ended in . 20 is calculated as:

	ROC % (Q: . 20 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: . 20 )	+	Invested Capital (Q: . 20 ))	/ count )
=	* ( 1 - % )	/	( (	+	)	/ )
=		/
=	%

where

	Invested Capital		(Q: . 20 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=		-		-	(	-	5% * )
=

	Invested Capital		(Q: . 20 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=		-		-	(	-	5% * )
=

Note: The EBIT data used here is one times the annual (. 20) data.

Meghna Insurance Co (DHA:MEGHNAINS) 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, Meghna Insurance Co's WACC % is 0.00%. Meghna Insurance Co's ROC % is 0.00% (calculated using TTM income statement data). Meghna 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.

Meghna Insurance Co ROC % Related Terms

Thank you for viewing the detailed overview of Meghna Insurance Co's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Meghna Insurance Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Meghna Insurance Co Ltd (DHA:MEGHNAINS) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

37/2, Purana Panltan, Pritam Zaman Tower, 4th Floor, Dhaka, BGD, 1000

Website

https://www.meghnainsurance.com

Meghna Insurance Co Ltd carries on all kinds of insurance, guarantee, and indemnity business other than life insurance business. The company has four primary business segments for reporting purposes namely fire, marine, motor, and miscellaneous. It engages in the underwriting business of the company and covers fire insurance, marine insurance, motor insurance, and miscellaneous insurance businesses.

Meghna Insurance Co Headlines

No Headlines