SCOR SE (XTER:SDRC) ROC % : -9.69% (As of Jun. 2024)

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What is SCOR SE 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 %. SCOR SE's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -9.69%.

As of today (2024-12-13), SCOR SE's WACC % is 3.91%. SCOR SE's ROC % is 0.73% (calculated using TTM income statement data). SCOR SE earns returns that do not match up to its cost of capital. It will destroy value as it grows.

SCOR SE ROC % Historical Data

The historical data trend for SCOR SE'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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SCOR SE ROC % Chart

SCOR SE Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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1.17

0.70

1.42

-3.97

2.65

SCOR SE Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															-1.16	-5.25	3.43	2.16	-9.69

SCOR SE ROC % Calculation

SCOR SE'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 )
=	1370 * ( 1 - 35.41% )	/	( (33141	+	33748.65)	/ 2 )
=	884.883	/	33444.825
=	2.65 %

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 )
=	34987	-	154	-	( 1794	-	5% * 2040 )
=	33141

	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 )
=	35477	-	175	-	( 1643	-	5% * 1793 )
=	33748.65

SCOR SE'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 )
=	116 * ( 1 - 2925% )	/	( (33693.6	+	33915.2)	/ 2 )
=	-3277	/	33804.4
=	-9.69 %

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 )
=	35477	-	175	-	( 1643	-	5% * 692 )
=	33693.6

	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 )
=	35467	-	208	-	( 1397	-	5% * 1064 )
=	33915.2

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

SCOR SE (XTER:SDRC) 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, SCOR SE's WACC % is 3.91%. SCOR SE's ROC % is 0.73% (calculated using TTM income statement data). SCOR SE 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.

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SCOR SE Business Description

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Address

5, avenue Kleber, Paris, FRA, 75116

Website

https://www.scor.com

Scor is the world's sixth-largest reinsurer, selling nonlife and life reinsurance. Scor global life insures life insurance and annuities. This means in its co-insurance agreements Scor shares in premiums and claims of life insurance contracts that have been sold by a primary insurer. In its excess of loss agreements, Scor reimburses a primary insurer for claims that are filed above an agreed amount. Scor also sells property and casualty reinsurance in coinsurance and excess of loss. Historically, Scor has been better in specialist lines and not as good in lines where there is a large potential for loss. Having recently grown in natural catastrophe, standards of underwriting have not been good. The business has subsequently decided to move back to less volatile lines.