IPEU (IPE Universal) ROC %: 14.85% (As of Jun. 2012)


IPEU IPE Universal Inc IPEU
30 GF Score
Price $12.00
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What is IPE Universal ROC %?

IPE Universal IPEU 30 ROC % is 14.85% as of Jun. 2012. GuruFocus rates IPEU with a GF Score™ of 30/100.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. IPE Universal's annualized return on capital (ROC %) for the quarter that ended in Jun. 2012 was 14.85%.

As of today (2026-06-26), IPE Universal's WACC % is 0.00%. IPE Universal's ROC % is 0.00% (calculated using TTM income statement data). IPE Universal earns returns that do not match up to its cost of capital. It will destroy value as it grows.

IPE Universal  (OTCPK:IPEU) 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, IPE Universal's WACC % is 0.00%. IPE Universal's ROC % is 0.00% (calculated using TTM income statement data). IPE Universal 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.

IPE Universal ROC % Related Terms

IPE Universal ROC % Historical Data

* Premium members only.

The historical data trend for IPE Universal'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.

IPE Universal ROC % Chart

IPE Universal Annual Data
Trend Jun09 Jun10 Jun11
ROC %
-162.50 7.62 33.87

IPE Universal Semi-Annual Data
Jun09 Jun10 Jun11 Jun12
ROC % -162.50 7.62 33.87 14.85
IPEU
30GF Score
IPE Universal Inc IPEU
ROC % is just one metric. See GF Score™, valuation, warning signs, and more.
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IPE Universal ROC % Calculation

IPE Universal's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2011 is calculated as:

ROC % (A: Jun. 2011 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2010 ) + Invested Capital (A: Jun. 2011 ))/ count )
=2.078 * ( 1 - 28.05% )/( (1.455 + 7.374)/ 2 )
=1.495121/4.4145
=33.87 %

where

Invested Capital(A: Jun. 2010 )
=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))
=4.522 - 4.266 - ( 0.018 - max(0, 4.284 - 3.085+0.018))
=1.455

Invested Capital(A: Jun. 2011 )
=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))
=8.766 - 1.61 - ( 0.021 - max(0, 1.61 - 1.392+0.021))
=7.374

IPE Universal's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2012 is calculated as:

ROC % (Q: Jun. 2012 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2011 ) + Invested Capital (Q: Jun. 2012 ))/ count )
=1.673 * ( 1 - 39.94% )/( (7.374 + 6.162)/ 2 )
=1.0048038/6.768
=14.85 %

where

Invested Capital(Q: Jun. 2011 )
=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))
=8.766 - 1.61 - ( 0.021 - max(0, 1.61 - 1.392+0.021))
=7.374

Invested Capital(Q: Jun. 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))
=8.499 - 4.706 - ( 0.018 - max(0, 4.706 - 2.337+0.018))
=6.162

Note: The Operating Income data used here is one times the annual (Jun. 2012) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of 14.85% mean?
IPE Universal (IPEU) has a ROC % of 14.85% as of Jun. 2012. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on IPE Universal and its competitors.
Is IPE Universal's ROC % too high?
IPE Universal's current ROC % is 14.85%. The Software industry median ROC % is 3.11. IPE Universal's value of 14.85% is 378.3% above this industry median. Overall, IPE Universal has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does IPE Universal's ROC % compare to SPNS and SPT?
IPE Universal's ROC % of 14.85% can be compared against companies in the Software industry. The industry median ROC % is 3.11. IPE Universal's value of 14.85% is 378.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Software company?
The median ROC % among Software companies is 3.11, based on 2,828 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. IPE Universal's current ROC % of 14.85% is 378.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on IPE Universal and its competitors. For the Software industry, the median ROC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPE Universal's current ROC % is 14.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IPE Universal stock overvalued right now?
IPE Universal (IPEU) has a current ROC % of 14.85%. The current ROC % is 14.85% and 378.3% above the Software industry median of 3.11. IPE Universal's overall GF Score™ is 30/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For IPE Universal (IPEU), the current ROC % is 14.85% as of Jun. 2012. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

IPE Universal Business Description

Address 1752 Ainsdale Drive, Roseville, CA, USA, 95747
IPE Universal Inc is engaged in developing childhood education software systems. The company is engaged in high-tech business developing early childhood education software systems located in Taiwan and China. The company also provides education programs, products, services and technological products but also licenses IP services to businesses, NFTs, Crypto, Virtual Real Estate, Metaverse (Virtual World), and merchandise and many other products.
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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