Utility (TSX:UTC.C) ROCE %: 4.53% (As of Nov. 2017)


What is Utility ROCE %?

Utility TSX:UTC.C ROCE % is 4.53% as of Nov. 2017.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Utility's annualized ROCE % for the quarter that ended in Nov. 2017 was 4.53%.

Utility  (TSX:UTC.C) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Utility ROCE % Related Terms

Utility ROCE % Historical Data

* Premium members only.

The historical data trend for Utility's ROCE % 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.

Utility ROCE % Chart

Utility Annual Data
Trend May08 May09 May10 May11 May12 May13 May14 May15 May16 May17
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.61 12.64 4.69 -4.61 20.22

Utility Semi-Annual Data
May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -29.38 22.11 13.88 26.03 4.53

Utility ROCE % Calculation

Utility's annualized ROCE % for the fiscal year that ended in May. 2017 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: May. 2017 )  (A: May. 2016 )(A: May. 2017 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: May. 2017 )  (A: May. 2016 )(A: May. 2017 )
=9.444/( ( (53.856 - 8.452) + (56.531 - 8.526) )/ 2 )
=9.444/( (45.404+48.005)/ 2 )
=9.444/46.7045
=20.22 %

Utility's ROCE % of for the quarter that ended in Nov. 2017 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Nov. 2017 )  (Q: May. 2017 )(Q: Nov. 2017 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Nov. 2017 )  (Q: May. 2017 )(Q: Nov. 2017 )
=2.172/( ( (56.531 - 8.526) + (56.714 - 8.776) )/ 2 )
=2.172/( ( 48.005 + 47.938 )/ 2 )
=2.172/47.9715
=4.53 %

(1) Note: The EBIT data used here is two times the semi-annual (Nov. 2017) EBIT data.

* 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 ROCE % →
What does a ROCE % of 4.53% mean?
Utility (TSX:UTC.C) has a ROCE % of 4.53% as of Nov. 2017.
Is Utility's ROCE % too high?
Utility's current ROCE % is 4.53%. The Asset Management industry median ROCE % is 4.46. Utility's value of 4.53% is 1.6% above this industry median.
How does Utility's ROCE % compare to PHCF?
Utility's ROCE % of 4.53% can be compared against companies in the Asset Management industry. The industry median ROCE % is 4.46. Utility's value of 4.53% is 1.6% 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 ROCE % for an Asset Management company?
The median ROCE % among Asset Management companies is 4.46, based on 705 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Utility's current ROCE % of 4.53% is 1.6% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Asset Management industry, the median ROCE % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Utility's current ROCE % is 4.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Utility stock overvalued right now?
Utility (TSX:UTC.C) has a current ROCE % of 4.53%. The current ROCE % is 4.53% and 1.6% above the Asset Management industry median of 4.46. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Utility (TSX:UTC.C), the current ROCE % is 4.53% as of Nov. 2017. 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.

Utility Business Description

Address 40 King Street West, P.O. Box 4085, Scotia Plaza, 26th Floor, Toronto, ON, CAN, M5W 2X6
Utility Corp is a mutual fund corporation. The company holds a diversified investment portfolio (the Portfolio) of common shares (the Portfolio Shares) of selected Canadian electrical, power and utility and telecommunication companies in order to provide investors (the Shareholders) with a stable monthly dividend stream and capital appreciation potential.