Prime Life Insurance Co (XNEP:PLIC) ROC %: 0.00% (As of Jan. 2023)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

XNEP:PLIC Prime Life Insurance Co Ltd XNEP:PLIC
21 GF Score
Price NPR340.00
View Full Analysis

What is Prime Life Insurance Co ROC %?

Prime Life Insurance Co XNEP:PLIC 21 ROC % is 0.00% as of Jan. 2023. GuruFocus rates XNEP:PLIC with a GF Score™ of 21/100.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Prime Life Insurance Co's annualized return on capital (ROC %) for the quarter that ended in Jan. 2023 was 0.00%.

As of today (2026-07-14), Prime Life Insurance Co's WACC % is 0.00%. Prime Life Insurance Co's ROC % is 0.00% (calculated using TTM income statement data). Prime Life Insurance Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Prime Life Insurance Co  (XNEP:PLIC) 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, Prime Life Insurance Co's WACC % is 0.00%. Prime Life Insurance Co's ROC % is 0.00% (calculated using TTM income statement data). Prime Life 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.

Prime Life Insurance Co ROC % Related Terms

Prime Life Insurance Co ROC % Historical Data

* Premium members only.

The historical data trend for Prime Life 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.

Prime Life Insurance Co ROC % Chart

Prime Life Insurance Co Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21
ROC %
Get a 7-Day Free Trial 24.59 23.71 22.63 20.13 21.32

Prime Life Insurance Co Quarterly Data
Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Oct22 Jan23
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00
XNEP:PLIC
21GF Score
Prime Life Insurance Co Ltd XNEP:PLIC
ROC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Prime Life Insurance Co ROC % Calculation

Prime Life Insurance Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2021 is calculated as:

ROC % (A: Jul. 2021 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (A: Jul. 2020 ) + Invested Capital (A: Jul. 2021 ))/ count )
=3745.057 * ( 1 - 2.7% )/( (15478.47845 + 18706.3126)/ 2 )
=3643.940461/17092.395525
=21.32 %

where

Invested Capital(A: Jul. 2020 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=15912.79 - 499.356 - ( 167.033 - 5% * 4641.549 )
=15478.47845

Invested Capital(A: Jul. 2021 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=19099.549 - 630.276 - ( 49.568 - 5% * 5732.152 )
=18706.3126

Prime Life Insurance Co's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2023 is calculated as:

ROC % (Q: Jan. 2023 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2022 ) + Invested Capital (Q: Jan. 2023 ))/ count )
=0 * ( 1 - 0% )/( (24441.66655 + 25324.2825)/ 2 )
=0/24882.974525
=0.00 %

where

Invested Capital(Q: Oct. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=24392.517 - 0 - ( 40.126 - 5% * 1785.511 )
=24441.66655

Invested Capital(Q: Jan. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=25291.465 - 0 - ( 52.002 - 5% * 1696.39 )
=25324.2825

Note: The EBIT data used here is four times the quarterly (Jan. 2023) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of 0.00% mean?
Prime Life Insurance Co (XNEP:PLIC) has a ROC % of 0.00% as of Jan. 2023. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Prime Life Insurance Co and its competitors.
Is Prime Life Insurance Co's ROC % too high?
Prime Life Insurance Co's current ROC % is 0.00%. Overall, Prime Life Insurance Co has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Prime Life Insurance Co's ROC % compare to MET and PRU?
Prime Life Insurance Co's ROC % of 0.00% can be compared against companies in the Insurance industry. The industry median ROC % is 3.36. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Insurance company?
The median ROC % among Insurance companies is 3.36, based on 372 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Prime Life Insurance Co and its competitors. For the Insurance industry, the median ROC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prime Life Insurance Co's current ROC % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prime Life Insurance Co stock overvalued right now?
Prime Life Insurance Co (XNEP:PLIC) has a current ROC % of 0.00%. The current ROC % is 0.00%. Prime Life Insurance Co's overall GF Score™ is 21/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Prime Life Insurance Co (XNEP:PLIC), the current ROC % is 0.00% as of Jan. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Prime Life Insurance Co Business Description

Address Hattisar, Manakamana Marga, P.O. Box 25979, Kathmandu, NPL
Prime Life Insurance Co Ltd provides life insurance products and services in Nepal. The company's operating segment includes Endowment; Anticipated Endowment; Endowment Cum Whole Life; Whole Life; Without Profit Endowment; Foreign Employment Term; Other Term; Special Term and others. It generates maximum revenue from the Endowment segment.
21GF Score

Get the complete analysis for XNEP:PLIC

ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NPR340.00
Price