UVSE (Universal Energy) ROC %: -637.23% (As of Sep. 2009)

What is Universal Energy ROC %?

Universal Energy UVSE -98.00% ROC % is -637.23% as of Sep. 2009.

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 Energy's annualized return on capital (ROC %) for the quarter that ended in Sep. 2009 was -637.23%.

As of today (2026-06-25), Universal Energy's WACC % is 0.00%. Universal Energy's ROC % is 0.00% (calculated using TTM income statement data). Universal Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Universal Energy (OTCPK:UVSE) 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 Energy's WACC % is 0.00%. Universal Energy's ROC % is 0.00% (calculated using TTM income statement data). Universal 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.

Universal Energy ROC % Related Terms

Universal Energy ROC % Historical Data

* Premium members only.

The historical data trend for Universal 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.

Universal Energy ROC % Chart

Universal Energy Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

ROC %

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-76.54

-157.45

-695.89

-55.76

-25.97

Universal Energy Quarterly Data
	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09
ROC %	Get a 7-Day Free Trial															-20.43	-42.30	-45.30	-41.61	-637.23

Universal Energy ROC % Calculation

Universal Energy's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2008 is calculated as:

	ROC % (A: Dec. 2008 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2007 )	+	Invested Capital (A: Dec. 2008 ))	/ count )
=	-2.673 * ( 1 - 0% )	/	( (15.92	+	4.667)	/ 2 )
=	-2.673	/	10.2935
=	-25.97 %

where

	Invested Capital		(A: Dec. 2007 )
=	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	))
=	3.551	-	0.353	-	( 0.235	-	max(0, 13.601	-	0.879	+	0.235	))
=	15.92

	Invested Capital		(A: Dec. 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	))
=	2.351	-	0.464	-	( 0.083	-	max(0, 3.183	-	0.403	+	0.083	))
=	4.667

Universal Energy's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2009 is calculated as:

	ROC % (Q: Sep. 2009 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2009 )	+	Invested Capital (Q: Sep. 2009 ))	/ count )
=	-25.416 * ( 1 - 0% )	/	( (4.908	+	3.069)	/ 2 )
=	-25.416	/	3.9885
=	-637.23 %

where

	Invested Capital		(Q: Jun. 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	))
=	1.469	-	0.654	-	( 0.031	-	max(0, 4.292	-	0.199	+	0.031	))
=	4.908

	Invested Capital		(Q: Sep. 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	))
=	1.267	-	0.499	-	( 0.006	-	max(0, 2.344	-	0.043	+	0.006	))
=	3.069

Note: The Operating Income data used here is four times the quarterly (Sep. 2009) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -637.23% mean?

Universal Energy (UVSE) has a ROC % of -637.23% as of Sep. 2009. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Universal Energy and its competitors.

Is Universal Energy's ROC % too high?

Universal Energy's current ROC % is -637.23%.

How does Universal Energy's ROC % compare to CEI and MKSEF?

Universal Energy's ROC % of -637.23% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.63. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROC % for an Oil & Gas company?

The median ROC % among Oil & Gas companies is 3.63, based on 997 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. 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 Universal Energy and its competitors. For the Oil & Gas industry, the median ROC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Energy's current ROC % is -637.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Universal Energy stock overvalued right now?

Universal Energy (UVSE) has a current ROC % of -637.23%. The current ROC % is -637.23%. 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 Universal Energy (UVSE), the current ROC % is -637.23% as of Sep. 2009. 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.

Universal Energy Business Description

Industry Energy Oil & Gas

Comparable Companies CEI MKSEF SOIGF ORIG PGNPQ GULTU PACD JSPRF NADL FOEAY PHXHF AWLCF ICD PES ARHVF SDRL GUKYF SDLP TDGCF SBR

Address 1540 International Parkway, Suite 200, Lake Mary, FL, USA, 32746

Website http://www.universalenergycorp.info

Universal Energy Corp is an independent energy company engaged in the acquisition and development of crude oil and natural gas leases in the United States and Canada.