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Umm Al Qaiwain General Investments Co (KUW:QIC) ROIC % : 3.02% (As of Dec. 2024)


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What is Umm Al Qaiwain General Investments Co ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Umm Al Qaiwain General Investments Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 3.02%.

As of today (2025-03-02), Umm Al Qaiwain General Investments Co's WACC % is 9.94%. Umm Al Qaiwain General Investments Co's ROIC % is 5.91% (calculated using TTM income statement data). Umm Al Qaiwain General Investments Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Umm Al Qaiwain General Investments Co ROIC % Historical Data

The historical data trend for Umm Al Qaiwain General Investments Co's ROIC % 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.

* Premium members only.

Umm Al Qaiwain General Investments Co ROIC % Chart

Umm Al Qaiwain General Investments Co Annual Data
Trend Dec12 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.46 9.51 9.16 6.65 6.18

Umm Al Qaiwain General Investments Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
ROIC % 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 -5.80 10.15 5.63 4.77 3.02

Competitive Comparison of Umm Al Qaiwain General Investments Co's ROIC %

For the Asset Management subindustry, Umm Al Qaiwain General Investments Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Umm Al Qaiwain General Investments Co's ROIC % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Umm Al Qaiwain General Investments Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Umm Al Qaiwain General Investments Co's ROIC % falls into.



Umm Al Qaiwain General Investments Co ROIC % Calculation

Umm Al Qaiwain General Investments Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROIC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=2.423 * ( 1 - 2.1% )/( (38.177 + 38.632)/ 2 )
=2.372117/38.4045
=6.18 %

where

Umm Al Qaiwain General Investments Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2024 is calculated as:

ROIC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=1.388 * ( 1 - 11.84% )/( (42.445 + 38.632)/ 2 )
=1.2236608/40.5385
=3.02 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2024) data.

* 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.


Umm Al Qaiwain General Investments Co  (KUW:QIC) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Umm Al Qaiwain General Investments Co's WACC % is 9.94%. Umm Al Qaiwain General Investments Co's ROIC % is 5.91% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


Umm Al Qaiwain General Investments Co ROIC % Related Terms

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Umm Al Qaiwain General Investments Co Business Description

Traded in Other Exchanges
Address
Al Ittihad Street, Fahad Al Salem Street, P.O.Box: 816, Building a Big Market Tower Floor 9, Al Raafah Kuwait: Al Dar Audit-Abdullah Muzaini, Umm Al-Qaiwain, ARE
Umm Al Qaiwain General Investments Co is engaged in development, establishment and management of real estate enterprises, funds and stocks investments (stocks and bonds), investment, establishment and institution in commercial enterprises, entertainment, agriculture, tourism, industrial, infrastructure, educational services, health, energy and ownership and investment of classes and units in the buildings of the investment areas. The two geographical segments in which the company operates comprise of the United Arab Emirates, which generates maximum revenue and the Gulf Cooperation Council.

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