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Al Madina Takaful Co.OG (MUS:AMAT) ROIC % : 0.00% (As of Sep. 2024)


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What is Al Madina Takaful Co.OG 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 %. Al Madina Takaful Co.OG's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 0.00%.

As of today (2024-12-13), Al Madina Takaful Co.OG's WACC % is 10.19%. Al Madina Takaful Co.OG's ROIC % is 0.00% (calculated using TTM income statement data). Al Madina Takaful Co.OG earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Al Madina Takaful Co.OG ROIC % Historical Data

The historical data trend for Al Madina Takaful Co.OG'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.

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Al Madina Takaful Co.OG ROIC % Chart

Al Madina Takaful Co.OG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
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Al Madina Takaful Co.OG Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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Competitive Comparison of Al Madina Takaful Co.OG's ROIC %

For the Insurance - Diversified subindustry, Al Madina Takaful Co.OG'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.


Al Madina Takaful Co.OG's ROIC % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Al Madina Takaful Co.OG's ROIC % distribution charts can be found below:

* The bar in red indicates where Al Madina Takaful Co.OG's ROIC % falls into.



Al Madina Takaful Co.OG ROIC % Calculation

Al Madina Takaful Co.OG's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=0 * ( 1 - 18.14% )/( (85.318 + 81.10865)/ 2 )
=0/83.213325
=0.00 %

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 )
=122.606 - 31.492 - ( 6.64 - 5% * 16.88 )
=85.318

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 )
=123.239 - 31.735 - ( 11.249 - 5% * 17.073 )
=81.10865

Al Madina Takaful Co.OG's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=0 * ( 1 - 65.03% )/( (84.20135 + 74.07805)/ 2 )
=0/79.1397
=0.00 %

where

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 )
=119.268 - 27.812 - ( 7.524 - 5% * 5.387 )
=84.20135

Invested Capital(Q: Sep. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=119.143 - 36.64 - ( 8.695 - 5% * 5.401 )
=74.07805

Note: The EBIT data used here is four times the quarterly (Sep. 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.


Al Madina Takaful Co.OG  (MUS:AMAT) 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, Al Madina Takaful Co.OG's WACC % is 10.19%. Al Madina Takaful Co.OG's ROIC % is 0.00% (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.


Al Madina Takaful Co.OG ROIC % Related Terms

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Al Madina Takaful Co.OG Business Description

Traded in Other Exchanges
N/A
Address
Office no. 301/302, P.O. Box 80, 3rd Floor, Building 6, Muscat Grand Mall, Ghubra, Muscat, OMN, 136
Al Madina Takaful Co. SAOG is engaged in the business of takaful activities and investments by adopting the wakala and mudarabha model respectively, on behalf of the participants by the Islamic Sharia principles. The business operating segments are Family takaful and general takaful. It generates the majority of its revenue from General takaful, which contracts include Motor, marine and aviation, Fire, energy, medical, engineering, liability, and general accident contracts. Geographically, the operations of the company are located inside the Sultanate of Oman.