URS (FRA:URS) ROIC % : 6.83% (As of Jun. 2014)

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What is URS ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. URS's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2014 was 6.83%.

As of today (2024-05-17), URS's WACC % is 2.36%. URS's ROIC % is 6.41% (calculated using TTM income statement data). URS generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

URS ROIC % Historical Data

The historical data trend for URS's ROIC % 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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URS ROIC % Chart

URS Annual Data

Trend

Oct04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROIC %

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5.20

7.93

1.65

7.14

5.17

URS Quarterly Data
	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14
ROIC %	Get a 7-Day Free Trial															5.13	6.91	3.07	2.84	6.83

Competitive Comparison of URS's ROIC %

For the Engineering & Construction subindustry, URS'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.

URS's ROIC % Distribution in the Construction Industry

For the Construction industry and Industrials sector, URS's ROIC % distribution charts can be found below:

* The bar in red indicates where URS's ROIC % falls into.

URS ROIC % Calculation

URS's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2013 is calculated as:

	ROIC % (A: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2012 )	+	Invested Capital (A: Dec. 2013 ))	/ count )
=	431.284 * ( 1 - 33.74% )	/	( (5779.16	+	5284.178)	/ 2 )
=	285.7687784	/	5531.669
=	5.17 %

where

	Invested Capital		(A: Dec. 2012 )
=	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	))
=	7056.882	-	1038.073	-	( 239.649	-	max(0, 1524.762	-	2680.106	+	239.649	))
=	5779.16

	Invested Capital		(A: Dec. 2013 )
=	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	))
=	6364.14	-	872.861	-	( 207.101	-	max(0, 1342.178	-	2475.211	+	207.101	))
=	5284.178

URS's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2014 is calculated as:

	ROIC % (Q: Jun. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2014 )	+	Invested Capital (Q: Jun. 2014 ))	/ count )
=	406.272 * ( 1 - 10.74% )	/	( (5352.369	+	5267.552)	/ 2 )
=	362.6383872	/	5309.9605
=	6.83 %

where

	Invested Capital		(Q: Mar. 2014 )
=	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	))
=	6311.067	-	791.685	-	( 167.013	-	max(0, 1243.56	-	2495.796	+	167.013	))
=	5352.369

	Invested Capital		(Q: Jun. 2014 )
=	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	))
=	6370.08	-	894.24	-	( 208.288	-	max(0, 1335.84	-	2477.376	+	208.288	))
=	5267.552

Note: The Operating Income data used here is four times the quarterly (Jun. 2014) data.

URS (FRA:URS) 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, URS's WACC % is 2.36%. URS's ROIC % is 6.41% (calculated using TTM income statement data). URS generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. URS 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 %, 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.

URS ROIC % Related Terms

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URS (FRA:URS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » URS Corp (FRA:URS) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.urscorp.com

URS Corporation was originally incorporated in California on May 1, 1957 under the former name of Broadview Research Corporation. On May 18, 1976, it re-incorporated in Delaware under the name URS Corporation. After several additional name changes, it re-adopted the name 'URS Corporation' on February 21, 1990. The Company is an international provider of engineering, construction and technical services. It offers a range of program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to public agencies and private sector clients around the world. It is also a U.S. federal government contractor in the areas of systems engineering and technical assistance, and operations and maintenance. The Company expertise is focused in four market sectors: power, infrastructure, federal, and industrial and commercial. Within these markets, it offers a broad range of services, including program management; planning, design and engineering; systems engineering and technical assistance; IT services; construction and construction management; operations and maintenance; and decommissioning and closure. In the power sector, the Company plans, designs, engineers, constructs, retrofits and maintains a wide range of power-generating facilities, as well as the systems that transmit and distribute electricity. Its services include planning, siting and licensing, permitting, engineering, procurement, construction and construction management, facility start-up, operations and maintenance, upgrades and modifications, and decommissioning and closure. It provides these services to utilities, industrial co-generators, independent power producers, original equipment manufacturers and government utilities. In the infrastructure sector, the Company plans, designs, engineers, constructs, retrofits and maintains a wide range of power-generating facilities, as well as the systems that transmit and distribute electricity. Its services include planning, siting and licensing, permitting, engineering, procurement, construction and construction management, facility start-up, operations and maintenance, upgrades and modifications, and decommissioning and closure. As a contractor to the U.S. federal government and national governments of other countries, it serves a wide variety of government departments and agencies, including the DOD, DHS, Department of Energy, as well as the General Services Administration, the Environmental Protection Agency, NASA and other federal agencies. The Company's services range from program management; planning, design and engineering; systems engineering and technical assistance; and IT services to construction and construction management; operations and maintenance; and decommissioning and closure. In industrial and commercial sector it provides a wide range of engineering, procurement and construction services for new industrial and commercial

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