Universal Technologies Holdings (HKSE:01026) ROC % : -2.55% (As of Dec. 2024)

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What is Universal Technologies 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 Technologies Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -2.55%.

As of today (2025-04-02), Universal Technologies Holdings's WACC % is 4.49%. Universal Technologies Holdings's ROC % is -3.09% (calculated using TTM income statement data). Universal Technologies Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Universal Technologies Holdings ROC % Historical Data

The historical data trend for Universal Technologies 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.

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Universal Technologies Holdings ROC % Chart

Universal Technologies Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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-2.52

-1.11

-2.98

-2.49

-3.05

Universal Technologies Holdings Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial															-1.66	-3.67	-1.71	-3.64	-2.55

Universal Technologies Holdings ROC % Calculation

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

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	-42.902 * ( 1 - -28.48% )	/	( (1790.594	+	1827.017)	/ 2 )
=	-55.1204896	/	1808.8055
=	-3.05 %

where

	Invested Capital		(A: Dec. 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	))
=	2042.382	-	511.589	-	( 229.666	-	max(0, 785.097	-	525.296	+	229.666	))
=	1790.594

	Invested Capital		(A: 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	))
=	1939.551	-	610.761	-	( 228.01	-	max(0, 986.808	-	488.581	+	228.01	))
=	1827.017

Universal Technologies 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 )
=	-42.88 * ( 1 - -6.01% )	/	( (1737.253	+	1827.017)	/ 2 )
=	-45.457088	/	1782.135
=	-2.55 %

where

	Invested Capital		(Q: Jun. 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	))
=	1957.034	-	521.787	-	( 213.816	-	max(0, 809.138	-	507.132	+	213.816	))
=	1737.253

	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	))
=	1939.551	-	610.761	-	( 228.01	-	max(0, 986.808	-	488.581	+	228.01	))
=	1827.017

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

Universal Technologies Holdings (HKSE:01026) 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 Technologies Holdings's WACC % is 4.49%. Universal Technologies Holdings's ROC % is -3.09% (calculated using TTM income statement data). Universal Technologies Holdings 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 Technologies Holdings ROC % Related Terms

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Universal Technologies Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Universal Technologies Holdings Ltd (HKSE:01026) » Definitions » ROC %

Comparable Companies

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Address

Number 148 Connaught Road Central, Room A & B2, 11th Floor, Guangdong Investment Tower, Sheung Wan, Hong Kong, HKG

Website

https://www.uth.com.hk

Universal Technologies Holdings Ltd is an investment holding company. The company has three operating segments: Water supply and related services; Properties investment and development; Financial Services and Others It generates maximum revenue from the Water supply and related services segment. The Water supply and related services segment engaged in the supply of tap water to various districts of Qingyuan City, Guangdong Province. Geographically, it derives a majority of revenue from the People's Republic of China.

Executives

Wang Yingqi	2201 Interest of corporation controlled by you
Bei Yi Si Guang Zhou Ke Ji You Xian Gong Si
Bei Yi Si Xiang Gang Ke Ji You Xian Gong Si
Affluent Vast Holdings Limited	2201 Interest of corporation controlled by you
Zhu Fenglian	2201 Interest of corporation controlled by you
Eastcorp International Limited	2101 Beneficial owner
Yong Cheng Shi Ye Fa Zhan You Xian Gong Si	2501 Other

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