LifeStar Insurance (MAL:LSI) ROC % : 0.00% (As of Jun. 2024)

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

As of today (2024-09-22), LifeStar Insurance's WACC % is 9.07%. LifeStar Insurance's ROC % is 0.82% (calculated using TTM income statement data). LifeStar Insurance earns returns that do not match up to its cost of capital. It will destroy value as it grows.

LifeStar Insurance ROC % Historical Data

The historical data trend for LifeStar 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.

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LifeStar Insurance ROC % Chart

LifeStar Insurance Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

0.65

0.43

-1.79

0.82

LifeStar Insurance Semi-Annual Data
	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial				-	-	-	-	-

LifeStar Insurance ROC % Calculation

LifeStar Insurance'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 )
=	1.675 * ( 1 - 35.93% )	/	( (125.3171	+	136.6085)	/ 2 )
=	1.0731725	/	130.9628
=	0.82 %

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 )
=	135.517	-	3.763	-	( 5.962	-	5% * -9.498 )
=	125.3171

	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 )
=	145.199	-	4.252	-	( 4.921	-	5% * 11.65 )
=	136.6085

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

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	0 * ( 1 - -4.21% )	/	( (136.3142	+	148.13805)	/ 2 )
=	0	/	142.226125
=	0.00 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	145.199	-	4.252	-	( 4.921	-	5% * 5.764 )
=	136.3142

	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 )
=	149.541	-	0.414	-	( 1.419	-	5% * 8.601 )
=	148.13805

Note: The EBIT data used here is two times the semi-annual (Jun. 2024) data.

LifeStar Insurance (MAL:LSI) 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, LifeStar Insurance's WACC % is 9.07%. LifeStar Insurance's ROC % is 0.82% (calculated using TTM income statement data). LifeStar 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.

LifeStar Insurance ROC % Related Terms

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LifeStar Insurance Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » LifeStar Insurance PLC (MAL:LSI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Testaferrata Street, Ta’Xbiex, MLT, XBX 1403

Website

https://www.lifestarinsurance.com

LifeStar Insurance PLC is a provider of insurance products in Malta offering customers a comprehensive range of protection, savings and investment and retirement life insurance products. Its products are classified under Protection, Savings and Investment, Retirement, and Health products.