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Ultrapay Limited (ASX:ULT) ROC % : -160.18% (As of Dec. 2006)


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What is Ultrapay Limited 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 %. Ultrapay Limited's annualized return on capital (ROC %) for the quarter that ended in Dec. 2006 was -160.18%.

As of today (2024-05-21), Ultrapay Limited's WACC % is 0.00%. Ultrapay Limited's ROC % is 0.00% (calculated using TTM income statement data). Ultrapay Limited earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ultrapay Limited ROC % Historical Data

The historical data trend for Ultrapay Limited'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.

* Premium members only.

Ultrapay Limited ROC % Chart

Ultrapay Limited Annual Data
Trend Jun97 Jun98 Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -37.66 -22.34 0.84 -44.50 -198.13

Ultrapay Limited Semi-Annual Data
Dec96 Jun97 Dec98 Jun99 Dec99 Jun00 Dec00 Jun01 Dec01 Jun02 Dec02 Jun03 Dec03 Jun04 Dec04 Jun05 Dec05 Jun06 Dec06
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -40.26 -45.29 -24.75 -305.59 -160.18

Ultrapay Limited ROC % Calculation

Ultrapay Limited's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2006 is calculated as:

ROC % (A: Jun. 2006 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2005 ) + Invested Capital (A: Jun. 2006 ))/ count )
=-16.019 * ( 1 - 0% )/( (9.753 + 6.417)/ 2 )
=-16.019/8.085
=-198.13 %

where

Invested Capital(A: Jun. 2005 )
=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))
=11.353 - 2.507 - ( 0.238 - max(0, 2.554 - 1.647+0.238))
=9.753

Invested Capital(A: Jun. 2006 )
=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))
=8.417 - 3.026 - ( 1.304 - max(0, 4.942 - 3.916+1.304))
=6.417

Ultrapay Limited's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2006 is calculated as:

ROC % (Q: Dec. 2006 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2006 ) + Invested Capital (Q: Dec. 2006 ))/ count )
=-10.08 * ( 1 - 0% )/( (6.417 + 6.169)/ 2 )
=-10.08/6.293
=-160.18 %

where

Invested Capital(Q: Jun. 2006 )
=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))
=8.417 - 3.026 - ( 1.304 - max(0, 4.942 - 3.916+1.304))
=6.417

Invested Capital(Q: Dec. 2006 )
=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))
=6.29 - 1.801 - ( 1.273 - max(0, 3.471 - 1.791+1.273))
=6.169

Note: The Operating Income data used here is two times the semi-annual (Dec. 2006) 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.

Ultrapay Limited  (ASX:ULT) 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, Ultrapay Limited's WACC % is 0.00%. Ultrapay Limited's ROC % is 0.00% (calculated using TTM income statement data). Ultrapay Limited 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.

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