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Universal Store Holdings (ASX:UNI) ROC % : 16.01% (As of Dec. 2024)


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What is Universal Store Holdings 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 Store Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 16.01%.

As of today (2025-03-17), Universal Store Holdings's WACC % is 11.20%. Universal Store Holdings's ROC % is 13.63% (calculated using TTM income statement data). Universal Store Holdings 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.


Universal Store Holdings ROC % Historical Data

The historical data trend for Universal Store Holdings'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.

Universal Store Holdings ROC % Chart

Universal Store Holdings Annual Data
Trend Jun20 Jun21 Jun22 Jun23 Jun24
ROC %
- 12.73 13.20 13.56 14.14

Universal Store Holdings Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
ROC % Get a 7-Day Free Trial Premium Member Only 19.65 6.09 18.45 9.63 16.01

Universal Store Holdings ROC % Calculation

Universal Store Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

ROC % (A: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2023 ) + Invested Capital (A: Jun. 2024 ))/ count )
=46.919 * ( 1 - 27.62% )/( (237.854 + 242.605)/ 2 )
=33.9599722/240.2295
=14.14 %

where

Universal Store Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=74.318 * ( 1 - 47.47% )/( (242.605 + 245.069)/ 2 )
=39.0392454/243.837
=16.01 %

where

Note: The Operating Income data used here is two times the semi-annual (Dec. 2024) 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.


Universal Store Holdings  (ASX:UNI) 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 Store Holdings's WACC % is 11.20%. Universal Store Holdings's ROC % is 13.63% (calculated using TTM income statement data). Universal Store Holdings 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.


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 Store Holdings ROC % Related Terms

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Universal Store Holdings Business Description

Traded in Other Exchanges
N/A
Address
42A, William Farrior Place, Eagle Farm, Brisbane, QLD, AUS, 4009
Universal Store Holdings Ltd is a specialty retailer of youth casual apparel. It offers casual apparel, footwear, and accessories to the customers. The company brand portfolio includes Champion, Perfect Stranger, Tommy Jeans, Kiss Chacey, Thrills, Barney Cools, and others. The company has two reportable segments namely, Universal store, and CTC. The majority of revenue is generated from the Universal store.

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