Nitol Insurance Co (DHA:NITOLINS) ROC % : 0.00% (As of . 20)

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

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

Nitol Insurance Co ROC % Historical Data

The historical data trend for Nitol 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.

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Nitol Insurance Co ROC % Chart

Nitol Insurance Co Annual Data

Trend

ROC %

Nitol Insurance Co Semi-Annual Data

ROC %

Nitol Insurance Co ROC % Calculation

Nitol 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% * )
=

Nitol 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.

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

Nitol Insurance Co ROC % Related Terms

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Nitol Insurance Co Business Description

Industry

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

Traded in Other Exchanges

N/A

Address

Road 144, Police plaza concord, Tower 2, 6th floor, Plot 2, Gulshan 1, Dhaka, BGD, 1212

Website

http://www.nitolinsurance.com

Nitol Insurance Co Ltd is a Bangladesh based insurance company. It is engaged in providing general insurance services. The companny offers fire insurance, marine insurance, motor insurance, and other miscellaneous insurance, including engineering, aviation, personal accident, bulgary, etc.

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