Al Hassan Engineering CoOG (MUS:HECI) ROC % : 5.46% (As of Dec. 2020)

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What is Al Hassan Engineering CoOG 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 %. Al Hassan Engineering CoOG's annualized return on capital (ROC %) for the quarter that ended in Dec. 2020 was 5.46%.

As of today (2024-06-24), Al Hassan Engineering CoOG's WACC % is 0.00%. Al Hassan Engineering CoOG's ROC % is 0.00% (calculated using TTM income statement data). Al Hassan Engineering CoOG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Al Hassan Engineering CoOG ROC % Historical Data

The historical data trend for Al Hassan Engineering CoOG'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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Al Hassan Engineering CoOG ROC % Chart

Al Hassan Engineering CoOG Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

ROC %

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-9.19

-3.30

-8.43

6.90

5.46

Al Hassan Engineering CoOG Semi-Annual Data
	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20
ROC %	Get a 7-Day Free Trial										-9.19	-3.30	-8.43	6.90	5.46

Al Hassan Engineering CoOG ROC % Calculation

Al Hassan Engineering CoOG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2020 is calculated as:

	ROC % (A: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2019 )	+	Invested Capital (A: Dec. 2020 ))	/ count )
=	1.715 * ( 1 - 0% )	/	( (51.36	+	11.473)	/ 2 )
=	1.715	/	31.4165
=	5.46 %

where

	Invested Capital		(A: Dec. 2019 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	33.6	-	17.527	-	( 2.072	-	max(0, 61.57	-	26.283	+	2.072	))
=	51.36

	Invested Capital		(A: Dec. 2020 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	20.484	-	13.717	-	( 4.241	-	max(0, 19.659	-	14.953	+	4.241	))
=	11.473

Al Hassan Engineering CoOG's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2020 is calculated as:

	ROC % (Q: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2019 )	+	Invested Capital (Q: Dec. 2020 ))	/ count )
=	1.715 * ( 1 - 0% )	/	( (51.36	+	11.473)	/ 2 )
=	1.715	/	31.4165
=	5.46 %

where

	Invested Capital		(Q: Dec. 2019 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	33.6	-	17.527	-	( 2.072	-	max(0, 61.57	-	26.283	+	2.072	))
=	51.36

	Invested Capital		(Q: Dec. 2020 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	20.484	-	13.717	-	( 4.241	-	max(0, 19.659	-	14.953	+	4.241	))
=	11.473

Note: The Operating Income data used here is one times the annual (Dec. 2020) data.

Al Hassan Engineering CoOG (MUS:HECI) 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, Al Hassan Engineering CoOG's WACC % is 0.00%. Al Hassan Engineering CoOG's ROC % is 0.00% (calculated using TTM income statement data). Al Hassan Engineering CoOG 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.

Al Hassan Engineering CoOG ROC % Related Terms

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Al Hassan Engineering CoOG (MUS:HECI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Al Hassan Engineering Co SAOG (MUS:HECI) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Ruwi, P.O Box 1948, Muscat, OMN, 112

Website

http://www.al-hassan.com

Al Hassan Engineering Co SAOG is a contracting company providing electrical, mechanical, instrumentation and civil contracting services to the Oil, Gas and Petrochemicals, Power, Water and Wastewater sectors. The company also provides fabrication that includes design, fabrication, and repair of pressure vessels and boilers and maintenance services across all sectors. It derives its revenues from the contracting services it provides to various sectors.

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