Capital Account – A Camet http://acamet.org/ Thu, 23 Sep 2021 17:20:22 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://acamet.org/wp-content/uploads/2021/04/a-camet-icon-150x150.png Capital Account – A Camet http://acamet.org/ 32 32 World Insurtech Report 2021 access to capital, customers http://acamet.org/world-insurtech-report-2021-access-to-capital-customers/ Thu, 23 Sep 2021 16:17:00 +0000 http://acamet.org/world-insurtech-report-2021-access-to-capital-customers/

Insurtechs have gained better access to capital allocation from investors in recent years and by the end of 2020, the total market capitalization of listed insurtechs has exceeded $ 22 billion, according to the Insurtech Global Report 2021. But capital isn’t the only thing insurtechs have access to: more than half of customers are also now willing to consider insurtech for coverage.

The increase in willingness is likely due to the fact that access to capital has led insurtechs to develop their digital capabilities and improve the customer experience. The report by Capgemini, an information technology and consulting firm, and EFMA, a nonprofit organization for banking and insurance analysis, includes surveys, discussions, interviews and analysis of more than 900 insurtechs.

Seth Rachlin, executive vice president and global insurance leader at Capgemini, said insurtechs are focused on reach.

“Throughout our series of Global Reports this year – both in the Insurance and Insurtech Report – we have focused on what we call the CARE Equation, which stands for convenience, guidance and scope.

Convenience comes with 24/7 access, fast response time, and omnichannel access to policy and account management. Clients also want personalized advice and the ability to manage their risk profile throughout the life cycle of their policy. Customers expect insurers to reach out and engage in meaningful ways based on their preferences, for example through risk prevention proposals or capabilities to offer non-intrusive assistance when needed, Rachlin explained. .

“Investor capital has enabled insurtech to invest in areas that can add value and challenge existing players,” said Rachlin. “This orientation perfectly matches the needs of incumbent operators. “

According to the survey results, 75% of insurers say their advanced data processing capabilities need to improve and face challenges using predictive analytics throughout the value chain, and 70% are researching collaborations to better assess customer knowledge and preferences.

Rachlin said the insurtech market potential is expected to grow at a CAGR of 36% in 2020-2024.

“We expect some of these players to have a fundamental influence on the future shape and size of the industry,” said Rachlin. “Now we also anticipate that the focus will be on increasing capacity and we anticipate that there will be a process of natural selections as investors focus on fundamentals. But, as we saw in the dot-com bubble, you only need a handful of very successful businesses to change the world.

The report predicts two scenarios if the trends continue:

  1. Embedded insurance as added value within a third-party ecosystem. Insurance would be delivered to the point of sale.
  2. Added value at the heart of complex offers. The customer relationship would be central and the products would be predictive and technology-based.

“To navigate today’s dynamic environment and be future-proof, insurers must move from digital to digital, and to do so, they must adopt a modular and specialized value chain where each actor is involved. is focusing on its strengths, ”Rachlin said. . “In this environment, we see insurers increasingly becoming orchestrators of their value chain and leaders or participants of other third-party ecosystems.

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Cummins India (NSE: CUMMINSIND) may struggle to allocate capital http://acamet.org/cummins-india-nse-cumminsind-may-struggle-to-allocate-capital/ Thu, 23 Sep 2021 09:01:42 +0000 http://acamet.org/cummins-india-nse-cumminsind-may-struggle-to-allocate-capital/

If you are looking for a multi-bagger, there are a few things to look out for. Among other things, we’ll want to see two things; first, a growth to recover on capital employed (ROCE) and on the other hand, an expansion of the amount capital employed. Basically, it means that a business has profitable initiatives that it can keep reinvesting in, which is a hallmark of a dialing machine. However, after briefly reviewing the numbers, we don’t think Cummins India (NSE: CUMMINSIND) has the makings of a multi-bagger in the future, but let’s see why this may be the case.

What is Return on Employee Capital (ROCE)?

If you’ve never worked with ROCE before, it measures the “return” (profit before tax) that a business generates on capital employed in its business. To calculate this metric for Cummins India, here is the formula:

Return on capital employed = Profit before interest and taxes (EBIT) ÷ (Total assets – Current liabilities)

0.16 = ₹ 7.9b ÷ (₹ 60b – ₹ 11b) (Based on the last twelve months up to June 2021).

Therefore, Cummins India has a ROCE of 16%. This is a relatively normal return on capital, and it is around the 14% generated by the machinery industry.

Check out our latest review for Cummins India

NSEI: CUMMINSIND Return on capital employed 23 September 2021

In the graph above, we measured Cummins India’s past ROCE against its past performance, but the future is arguably more important. If you are interested, you can view analyst forecasts in our free analyst forecast report for the company.

How are the returns evolving?

On the surface, the ROCE trend at Cummins India does not inspire confidence. About five years ago, returns on capital were 20%, but since then they have fallen to 16%. Although, as income and the amount of assets used in the business have increased, this could suggest that the business is investing in growth and that the additional capital has resulted in a short-term reduction in ROCE. If these investments prove to be successful, it can bode very well for stock performance in the long run.

Cummins India ROCE result

In summary, despite lower returns in the short term, we are encouraged to see that Cummins India is reinvesting for growth and therefore has higher sales. These trends are starting to be recognized by investors as the stock has provided a 26% gain to shareholders who have held it over the past five years. Thus, this stock can still be an attractive investment opportunity, if other fundamentals prove to be solid.

One more thing, we spotted 1 warning sign facing Cummins India that you might find interesting.

While Cummins India does not currently generate the highest returns, we have compiled a list of companies that currently generate over 25% return on equity. Check it out free list here.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

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Feedback on Capital Signal Hard times ahead for the Jiangnan group (HKG: 1366) http://acamet.org/feedback-on-capital-signal-hard-times-ahead-for-the-jiangnan-group-hkg-1366/ Tue, 21 Sep 2021 22:18:45 +0000 http://acamet.org/feedback-on-capital-signal-hard-times-ahead-for-the-jiangnan-group-hkg-1366/

Did you know that certain financial measures can provide clues about a potential multi-bagger? Among other things, we’ll want to see two things; first, a growth to recover on capital employed (ROCE) and on the other hand, an expansion of the amount capital employed. Put simply, these types of businesses are dialing machines, which means they continually reinvest their profits at ever higher rates of return. Although, when we considered Jiangnan Group (HKG: 1366), it didn’t seem to tick all of those boxes.

Return on capital employed (ROCE): what is it?

If you’ve never worked with ROCE before, it measures the “return” (profit before tax) that a business generates on capital employed in its business. To calculate this metric for the Jiangnan group, here is the formula:

Return on capital employed = Profit before interest and taxes (EBIT) ÷ (Total assets – Current liabilities)

0.086 = CN ¥ 592m ÷ (CN ¥ 17b – CN ¥ 9.7b) (Based on the last twelve months up to June 2021).

So, Jiangnan Group has a ROCE of 8.6%. On its own, that’s a low number but it’s around the 10% average generated by the electrical industry.

See our latest analysis for the Jiangnan group

SEHK: 1366 Return on capital employed on September 21, 2021

Historical performance is a great place to start when looking for a stock. So above you can see the gauge of Jiangnan Group’s ROCE compared to its past returns. If you want to delve into the history of Jiangnan Group earnings, income and cash flow, check out these free graphics here.

So what is the ROCE trend of Jiangnan Group?

When we looked at the ROCE trend at Jiangnan Group, we didn’t gain much trust. To be more precise, ROCE has increased by 19% over the past five years. However, as both capital employed and income have increased, it appears that the company is currently continuing to grow, resulting in short-term returns. And if the capital increase generates additional returns, the company, and therefore the shareholders, will benefit in the long run.

By the way, Jiangnan group’s current liabilities are still quite high at 59% of total assets. What this actually means is that suppliers (or short-term creditors) fund a large portion of the business, so just be aware that this can introduce some elements of risk. While this isn’t necessarily a bad thing, it can be beneficial if this ratio is lower.

In conclusion…

As returns have plummeted for Jiangnan Group lately, we are encouraged to see sales increasing and the company reinvesting in its operations. Despite these promising trends, the stock has slumped 74% in the past five years, so other factors could hurt the company’s outlook. Either way, reinvesting can pay off in the long run, so we think savvy investors may want to take this action further.

On a final note, we found 3 warning signs for the Jiangnan group (2 are potentially serious) you need to be aware of.

Although the Jiangnan Group does not currently generate the highest returns, we have compiled a list of companies that currently generate over 25% return on equity. Check it out free list here.

When trading stocks or any other investment, use the platform considered by many to be the gateway for professionals to the global market, Interactive Brokers. You get the cheapest * trading on stocks, options, futures, forex, bonds and funds from around the world from a single integrated account. Promoted

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

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Returns on capital at Enel Américas (SNSE: ENELAM) do not inspire confidence http://acamet.org/returns-on-capital-at-enel-americas-snse-enelam-do-not-inspire-confidence/ Tue, 21 Sep 2021 11:15:00 +0000 http://acamet.org/returns-on-capital-at-enel-americas-snse-enelam-do-not-inspire-confidence/

There are a few key trends to look for if we are to identify the next multi-bagger. First, we would like to identify a growth to recover on capital employed (ROCE) and at the same time, a based capital employed. This shows us that it is a composing machine, capable of continually reinvesting its profits in the business and generating higher returns. However, after investigation Enel Americas (SNSE: ENELAM), we don’t think current trends fit the mold of a multi-bagger.

What is Return on Employee Capital (ROCE)?

If you’ve never worked with ROCE before, it measures the “return” (profit before tax) that a business generates on capital employed in its business. Analysts use this formula to calculate it for Enel Americas:

Return on capital employed = Profit before interest and taxes (EBIT) ÷ (Total assets – Current liabilities)

0.077 = US $ 2.2B ÷ (US $ 35B – US $ 7.0B) (Based on the last twelve months up to June 2021).

Therefore, Enel Américas has a ROCE of 7.7%. On its own, this is a low return on capital, but it is in line with industry average returns of 7.7%.

See our latest review for Enel Américas

SNSE: ENELAM Feedback on Employee Capital September 21, 2021

Above you can see how Enel Américas’ current ROCE compares to its previous returns on capital, but there isn’t much you can say about the past. If you are interested, you can view analyst forecasts in our free analyst forecast report for the company.

What the ROCE trend can tell us

On the surface, the ROCE trend at Enel Américas does not inspire confidence. About five years ago, returns on capital were 16%, but since then they have fallen to 7.7%. However, it appears that Enel Américas is reinvesting for long-term growth, because while the capital employed has increased, the company’s sales haven’t changed much in the past 12 months. It may take some time for the business to begin to see a change in the benefits of these investments.

The bottom line

In conclusion, we have seen that Enel Américas is reinvesting in the company, but the returns are declining. And since the stock has only returned 5.4% to shareholders over the past five years, one could argue that they are aware of these gloomy trends. So if you’re looking for a multi-bagger, the underlying trends indicate you might have a better chance elsewhere.

One last thing to note, we have identified 3 warning signs with Enel Américas and understanding them should be part of your investment process.

If you want to look for solid businesses with great income, check out this free list of companies with good balance sheets and impressive returns on equity.

When trading stocks or any other investment, use the platform considered by many to be the gateway for professionals to the global market, Interactive Brokers. You get the cheapest * trading on stocks, options, futures, forex, bonds and funds from around the world from a single integrated account. Promoted

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

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No capital allocation for MDAs without income projections – Senate http://acamet.org/no-capital-allocation-for-mdas-without-income-projections-senate/ Mon, 20 Sep 2021 00:14:54 +0000 http://acamet.org/no-capital-allocation-for-mdas-without-income-projections-senate/

The Senate threatened to reject capital and overhead proposals from federal ministries, departments and agencies that did not accompany their 2022 budget estimates with revenue projections for the year.

The Red Chamber said only the staff costs of the agencies in error would be approved.

The heads and senior officials of the various MDAs are expected to start appearing before Senate committees to defend their budget estimates as soon as the president, Major General Muhammadu Buhari (retired), submits the document to the national parliament.

Our correspondent learned that the President could probably present the 2022 finance bill as soon as the National Assembly approves the 2022-2024 medium-term budget and expenditure strategy document.

Both chambers would likely review and adopt the MTEF / FSP this week, as the joint committees that worked on the tax document are expected to submit their reports this week for review.

Senate Finance Committee Chairman Senator Solomon Adeola told our correspondent that many MDAs could be denied allowances for capital and overhead expenses if they fail to produce their income projections. for the year.

He said all government agencies, whether fully, partially or not at all funded, were legally required to contribute to the treasury.

He lamented that many heads of MDA have, over the years, converted the federal agencies they manage to their personal property.

He said: “Many income-generating agencies spend what they generate and would say that what they get is not enough to fulfill their functions, hence the need to increase it with whatever they generate. .

“For each government agency, it is expected that once they come to defend their budget estimates, there should be corresponding revenue estimates that must contain what they are contributing to the budget.

“More than three-quarters of revenue-generating agencies believe that they should only come to the National Assembly to get their own share of the revenue from the federation’s account, and not what they should contribute to the national stock market.

“Now, once they arrive with their budget expenditure forecasts, they must also bring their revenue forecasts.

“We would like to see that in this year’s budget because, based on the preliminary investigation of this committee, our conclusions are not acceptable at all.”

He said that some agencies have confessed that since their inception they have never been summoned to give their management account regarding revenue generation.

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Chillicothe Fire Department appropriates funds to repair Fire Station 4 http://acamet.org/chillicothe-fire-department-appropriates-funds-to-repair-fire-station-4/ Sun, 19 Sep 2021 08:46:15 +0000 http://acamet.org/chillicothe-fire-department-appropriates-funds-to-repair-fire-station-4/

CHILLICOTHE— The Chillicothe Fire Department aims to use $ 41,000 from the Capital Fund for essential maintenance of Fire Station 4.

In addition to replacing the roof, the fire department is aiming to replace doors, windows, gutters and several old vents that will need to be removed to help prevent leaks in the future.

“The roof is not original, but in the 20 years that I have been here the roof has not been completely repaired,” said Aaron Knotts. “It’s been fixed here and there every time we have a leak, but the roof hasn’t been completely redone.”

The Fire Hall, located on University Drive, was built in 1969 to residential and non-commercial standards.

“He’s 52 years old and everything here was built to residential standards so nothing is metal like commercial buildings are now – he’s 50+ years old, it’s time to replace it like you would on a ordinary house. ”

On the front door of Fire Station 4, cracks and rot are evident on visual inspection.