ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Argo Group International Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was -2.53%.
As of today (2024-05-10), Argo Group International Holdings's WACC % is 9.02%. Argo Group International Holdings's ROIC % is -2.50% (calculated using TTM income statement data).
Argo Group International Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Argo Group International Holdings ROIC % Historical 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.
Competitive Comparison of Argo Group International Holdings's ROIC %
For the Insurance - Property & Casualty subindustry, Argo Group International Holdings'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.
Argo Group International Holdings's ROIC % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Argo Group International Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Argo Group International Holdings's ROIC % falls into.
Argo Group International Holdings ROIC % Calculation
Argo Group International Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:
Note:
The EBIT data used here is four times the quarterly (Sep. 2023) 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.
Argo Group International Holdings (NYSE:ARGO) 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, Argo Group International Holdings's WACC % is 9.02%. Argo Group International Holdings's ROIC % is -2.50% (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.
Argo Group International Holdings ROIC % Related Terms
Thank you for viewing the detailed overview of Argo Group International Holdings's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Argo Group International Holdings (Argo Group International Holdings) Business Description
Argo Group International Holdings Inc formerly Argo Group International Holdings Ltd is a property and casualty insurance company. It has two reportable segments which are U.S. Operations and International Operations. The U.S. Operations segment is comprised of two primary operating divisions, Excess and Surplus Lines and Specialty Admitted, while International Operations' primary operating divisions are Syndicate 1200, Reinsurance, and Argo Insurance Bermuda. The vast majority of revenue generation occurs within the excess and surplus lines segment, which underwrites casualty, property, and professional liability coverage for various clients. Argo generates the majority of its revenue in the United States, followed by the United Kingdom and Bermuda.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ARGO has been successfully added to your 