Universal Technical Institute (FRA:UTI) ROC % : 13.42% (As of Dec. 2024)

View and export this data going back to 2004. Start your Free Trial

What is Universal Technical Institute 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 Technical Institute's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 13.42%.

As of today (2025-03-16), Universal Technical Institute's WACC % is 12.17%. Universal Technical Institute's ROC % is 8.24% (calculated using TTM income statement data). Universal Technical Institute earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Universal Technical Institute ROC % Historical Data

The historical data trend for Universal Technical Institute'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 Technical Institute ROC % Chart

Universal Technical Institute Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

ROC %

Get a 7-Day Free Trial

4.02

3.63

6.42

2.34

6.31

Universal Technical Institute Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															6.34	4.96	3.35	11.35	13.42

Universal Technical Institute ROC % Calculation

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

	ROC % (A: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2023 )	+	Invested Capital (A: Sep. 2024 ))	/ count )
=	53.061 * ( 1 - 25.3% )	/	( (643.523	+	612.122)	/ 2 )
=	39.636567	/	627.8225
=	6.31 %

where

	Invested Capital		(A: Sep. 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	))
=	694.022	-	31.492	-	( 142	-	max(0, 173.064	-	192.071	+	142	))
=	643.523

	Invested Capital		(A: Sep. 2024 )
=	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	))
=	670.862	-	43.434	-	( 145.872	-	max(0, 184.672	-	199.978	+	145.872	))
=	612.122

Universal Technical Institute'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: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	104.964 * ( 1 - 19.53% )	/	( (612.122	+	646.973)	/ 2 )
=	84.4645308	/	629.5475
=	13.42 %

where

	Invested Capital		(Q: Sep. 2024 )
=	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	))
=	670.862	-	43.434	-	( 145.872	-	max(0, 184.672	-	199.978	+	145.872	))
=	612.122

	Invested Capital		(Q: Dec. 2024 )
=	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	))
=	719.837	-	45.63	-	( 164.259	-	max(0, 193.25	-	220.484	+	164.259	))
=	646.973

Note: The Operating Income data used here is four times the quarterly (Dec. 2024) data.

Universal Technical Institute (FRA:UTI) 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 Technical Institute's WACC % is 12.17%. Universal Technical Institute's ROC % is 8.24% (calculated using TTM income statement data). Universal Technical Institute 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 Technical Institute ROC % Related Terms

Thank you for viewing the detailed overview of Universal Technical Institute's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Universal Technical Institute Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Universal Technical Institute Inc (FRA:UTI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

UTI:USA UTI:Germany

Address

4225 East Windrose Drive, Suite 200, Phoenix, AZ, USA, 85032

Website

https://www.uti.edu

Universal Technical Institute Inc is an educational institution. It provides undergraduate degree, as well as certificate programs for technicians in the automotive, diesel, collision repair, motorcycle and marine fields. The company's reportable segment which includes Universal Technical Institute (UTI) and Concorde Career Colleges, Corporate. Majority of the revenue is generated from UTI segment which provides different kinds of degree and non-degree transportation and skilled trades technical training programs under brands such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute and others. It also provides dealer technician training or instructor staffing services to manufacturers.