Universal Power Industry (Universal Power Industry) ROC % : 0.00% (As of Mar. 2016)

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What is Universal Power Industry ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Universal Power Industry's annualized return on capital (ROC %) for the quarter that ended in Mar. 2016 was 0.00%.

As of today (2024-06-07), Universal Power Industry's WACC % is -0.12%. Universal Power Industry's ROC % is -0.78% (calculated using TTM income statement data). Universal Power Industry earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Universal Power Industry ROC % Historical Data

The historical data trend for Universal Power Industry's ROC % 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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Universal Power Industry ROC % Chart

Universal Power Industry Annual Data

Trend

Mar08

Mar09

Mar10

Mar11

Jun14

Jun15

Jun23

ROC %

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-34.27

-98.73

2.04

Universal Power Industry Quarterly Data
	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun23
ROC %	Get a 7-Day Free Trial															-	-	-	-	-

Universal Power Industry ROC % Calculation

Universal Power Industry's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2015 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	0.162 * ( 1 - 0% )	/	( (0	+	7.954)	/ 1 )
=	0.162	/	7.954
=	2.04 %

where

	Invested Capital		(A: Jun. 2015 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	0.006	-	0.005	-	( 0.006	-	max(0, 0.005	-	0.006	+	0.006	))
=	0

	Invested Capital		(A: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	8.981	-	4.171	-	( 0.326	-	max(0, 6.877	-	3.733	+	0.326	))
=	7.954

Universal Power Industry's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2016 is calculated as:

	ROC % (Q: Mar. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2015 )	+	Invested Capital (Q: Mar. 2016 ))	/ count )
=	-0.092 * ( 1 - 0% )	/	( (0	+	0)	/ 1 )
=	-0.092	/	0
=	%

where

	Invested Capital		(Q: Dec. 2015 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	0.013	-	0.001	-	( 0.013	-	max(0, 0.001	-	0.013	+	0.013	))
=	0

	Invested Capital		(Q: Mar. 2016 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	0	-	0.01	-	( 0	-	max(0, 0.01	-	0	+	0	))
=	0

Note: The Operating Income data used here is four times the quarterly (Mar. 2016) data.

Universal Power Industry (OTCPK:UPIN) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Universal Power Industry's WACC % is -0.12%. Universal Power Industry's ROC % is -0.78% (calculated using TTM income statement data). Universal Power Industry earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % 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.

Universal Power Industry ROC % Related Terms

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Universal Power Industry (Universal Power Industry) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Universal Power Industry Corp (OTCPK:UPIN) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

3 Grace Avenue, Suite 100, Great Neck, NY, USA, 11021

Website

https://www.upinholdings.com

Universal Power Industry Corp is a diversified holding company. It owns, invests, and or manages businesses and real estate, and on special situations provides financing solutions to companies at various developmental stages. Its business objectives cover a wide range of sectors from consumer/industrial products and technology research and development/startups.