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Universal Potash (Universal Potash) Return-on-Tangible-Equity : -296.17% (As of Jun. 2008)


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What is Universal Potash Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Universal Potash's annualized net income for the quarter that ended in Jun. 2008 was $-0.35 Mil. Universal Potash's average shareholder tangible equity for the quarter that ended in Jun. 2008 was $0.12 Mil. Therefore, Universal Potash's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2008 was -296.17%.

The historical rank and industry rank for Universal Potash's Return-on-Tangible-Equity or its related term are showing as below:

UPCO's Return-on-Tangible-Equity is not ranked *
in the Metals & Mining industry.
Industry Median: -16.12
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Universal Potash Return-on-Tangible-Equity Historical Data

The historical data trend for Universal Potash's Return-on-Tangible-Equity 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.

Universal Potash Return-on-Tangible-Equity Chart

Universal Potash Annual Data
Trend Mar04 Mar05 Mar06 Mar07 Mar08
Return-on-Tangible-Equity
-464.71 - - - -2,593.81

Universal Potash Quarterly Data
Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08
Return-on-Tangible-Equity 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 - -2,556.86 -129.40 -602.52 -296.17

Competitive Comparison of Universal Potash's Return-on-Tangible-Equity

For the Other Industrial Metals & Mining subindustry, Universal Potash's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.


Universal Potash's Return-on-Tangible-Equity Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Universal Potash's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Universal Potash's Return-on-Tangible-Equity falls into.



Universal Potash Return-on-Tangible-Equity Calculation

Universal Potash's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2008 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2008 )  (A: Mar. 2007 )(A: Mar. 2008 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2008 )  (A: Mar. 2007 )(A: Mar. 2008 )
=-1.258/( (-0.042+0.139 )/ 2 )
=-1.258/0.0485
=-2,593.81 %

Universal Potash's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2008 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2008 )  (Q: Mar. 2008 )(Q: Jun. 2008 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2008 )  (Q: Mar. 2008 )(Q: Jun. 2008 )
=-0.348/( (0.139+0.096)/ 2 )
=-0.348/0.1175
=-296.17 %

* 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.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2008) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Universal Potash  (OTCPK:UPCO) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Universal Potash Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Universal Potash's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Universal Potash (Universal Potash) Business Description

Traded in Other Exchanges
N/A
Address
1300 East Street, Fairport Harbor, OH, USA, 44077
Universal Potash Corp is an exploration stage company. It is engaged in the mining of natural resources in the United States.

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