Sikder Insurance Co (DHA:SICL) ROC % : 0.00% (As of Mar. 2024)

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What is Sikder 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 %. Sikder Insurance Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 0.00%.

As of today (2024-12-12), Sikder Insurance Co's WACC % is 10.19%. Sikder Insurance Co's ROC % is 0.00% (calculated using TTM income statement data). Sikder Insurance Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Sikder Insurance Co ROC % Historical Data

The historical data trend for Sikder 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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Sikder Insurance Co ROC % Chart

Sikder Insurance Co Annual Data

Trend

ROC %

Sikder Insurance Co Semi-Annual Data
	Mar23	Mar24
ROC %	-	-

Sikder Insurance Co ROC % Calculation

Sikder 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% * )
=

Sikder Insurance Co's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	0 * ( 1 - 0% )	/	( (0	+	1610.095)	/ 1 )
=	0	/	1610.095
=	0.00 %

where

	Invested Capital		(Q: Mar. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	0	-	0	-	( 0	-	5% * 0 )
=	0

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	1999.014	-	77.218	-	( 311.701	-	5% * 0 )
=	1610.095

Note: The EBIT data used here is one times the annual (Mar. 2024) data.

Sikder Insurance Co (DHA:SICL) 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, Sikder Insurance Co's WACC % is 10.19%. Sikder Insurance Co's ROC % is 0.00% (calculated using TTM income statement data). Sikder 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.

Sikder Insurance Co ROC % Related Terms

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Sikder Insurance Co Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

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Address

295/Ja/14, Rayer Bazar, Monica Estate, Dhaka, BGD, 1209

Website

https://www.sikderinsurance.com

Sikder Insurance Co Ltd underwrites major insurance businesses such as Fire Accidental Damage on Property Insurance, Marine Cargo Insurance, Marine Hull, Liability Insurance, Aviation Insurance, Motor Insurance, Engineering Insurance & Miscellaneous Insurance. It run all types of General Insurance Businesses other than Life Insurance Business.

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