United Energy (United Energy) ROC % : -202.17% (As of Dec. 2010)

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What is United Energy 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 %. United Energy's annualized return on capital (ROC %) for the quarter that ended in Dec. 2010 was -202.17%.

As of today (2024-06-17), United Energy's WACC % is 0.00%. United Energy's ROC % is 0.00% (calculated using TTM income statement data). United Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.

United Energy ROC % Historical Data

The historical data trend for United Energy'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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United Energy ROC % Chart

United Energy Annual Data

Trend

Mar00

Mar01

Mar02

Mar03

Mar04

Mar05

Mar06

Mar07

Mar08

Mar09

ROC %

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-98.41

-795.89

-298.65

-289.94

-211.38

United Energy Quarterly Data
	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10
ROC %	Get a 7-Day Free Trial															-475.84	-174.24	-37.29	-63.45	-202.17

United Energy ROC % Calculation

United Energy's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2009 is calculated as:

	ROC % (A: Mar. 2009 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2008 )	+	Invested Capital (A: Mar. 2009 ))	/ count )
=	-1.337 * ( 1 - % )	/	( (0.754	+	0.511)	/ 2 )
=	-1.337	/	0.6325
=	-211.38 %

where

	Invested Capital		(A: Mar. 2008 )
=	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	))
=	1.895	-	0.282	-	( 0.859	-	max(0, 0.526	-	1.435	+	0.859	))
=	0.754

	Invested Capital		(A: Mar. 2009 )
=	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	))
=	0.933	-	0.447	-	( 0.056	-	max(0, 0.482	-	0.457	+	0.056	))
=	0.511

United Energy's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2010 is calculated as:

	ROC % (Q: Dec. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2010 )	+	Invested Capital (Q: Dec. 2010 ))	/ count )
=	-0.932 * ( 1 - % )	/	( (0.468	+	0.454)	/ 2 )
=	-0.932	/	0.461
=	-202.17 %

where

	Invested Capital		(Q: Sep. 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	))
=	1.016	-	1.055	-	( 0.15	-	max(0, 1.085	-	0.578	+	0.15	))
=	0.468

	Invested Capital		(Q: Dec. 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	))
=	0.731	-	0.996	-	( 0.067	-	max(0, 1.026	-	0.307	+	0.067	))
=	0.454

Note: The Operating Income data used here is four times the quarterly (Dec. 2010) data.

United Energy (OTCPK:UNRG) 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, United Energy's WACC % is 0.00%. United Energy's ROC % is 0.00% (calculated using TTM income statement data). United Energy 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.

United Energy ROC % Related Terms

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United Energy (United Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » United Energy Corp (OTCPK:UNRG) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

101 East Park Boulevard, 6th Floor, Plano, TX, USA, 75074

Website

https://www.unitedenergycorp.net

United Energy Corp is engaged in the exploration and production of oil and natural gas properties. The company's holdings include assets and operations in Texas, Oklahoma, Kansas, and Louisiana.

Executives

Jack Silver	director, 10 percent owner	660 MADISON AVENUE, NEW YORK NY 10021
Adam Hershey	director	140 RIVERSIDE BOULEVARD, APT 2302, NEW YORK NY 10069
Grano Joseph J Jr	other: Former 10% Owner	C/O MEDGENICS, INC., 435 DEVON PARK DRIVE BLDG 700, WAYNE PA 19087

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