FedNat Co ROCE

What is the ROCE of FedNat Co?

The ROCE of FedNat Holding Co is -9.51%

What is the definition of ROCE?



Return on capital employed (ROCE) is a financial ratio that measures a company’s profitability and the efficiency with which its capital is used.

= EBIT / (assets - current liabilities)

Return on capital employed (ROCE) is the total amount of capital that a company has utilized in order to generate profits. It is the sum of shareholders' equity and debt liabilities. It can be simplified as total assets minus current liabilities.

ROCE is especially useful when comparing the performance of companies in capital-intensive sectors. ROCE considers debt and other liabilities as well compared to other fundamentals which only analyze profitability related to a company’s common equity. This provides a better indication of financial performance for companies with significant debt. For a company, the ROCE trend over the years is also an important indicator of performance. In general, investors tend to favor companies with stable and rising ROCE numbers over companies where ROCE is volatile and bounces around from one year to the next.

Instead of using capital employed at an arbitrary point in time, analysts and investors often calculate ROCE based on the average capital employed (ROACE), which takes the average of opening and closing capital employed for the time period.

ROCE of companies in the Finance sector on NASDAQ compared to FedNat Co

What does FedNat Co do?

FedNat Holding Company is a regional insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through its subsidiaries and contractual relationships with independent agents and general agents. The Company, through its wholly owned subsidiaries FedNat Insurance Company, Maison Insurance Company, and Monarch National Insurance Company, is focused on providing homeowners insurance in Florida, Texas, Louisiana, Alabama, South Carolina and Mississippi.

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