Universal Potash (Universal Potash) ROCE % : -297.44% (As of Jun. 2008)

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What is Universal Potash ROCE %?

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. Universal Potash's annualized ROCE % for the quarter that ended in Jun. 2008 was -297.44%.

Universal Potash ROCE % Historical Data

The historical data trend for Universal Potash'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.

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Universal Potash ROCE % Chart

Universal Potash Annual Data

Trend

Mar04

Mar05

Mar06

Mar07

Mar08

ROCE %

-464.71

-1,773.20

Universal Potash Quarterly Data
	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08
ROCE %	Get a 7-Day Free Trial												-	-1,189.47	-129.54	-101.89	-297.44

Universal Potash ROCE % Calculation

Universal Potash's annualized ROCE % for the fiscal year that ended in Mar. 2008 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2008 )		(A: Mar. 2007 )		(A: Mar. 2008 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2008 )		(A: Mar. 2007 )		(A: Mar. 2008 )
	=	-0.86	/	( ( (0.03 - 0.072)	+	(0.775 - 0.636) )	/ 2 )
	=	-0.86	/	( (-0.042	+	0.139)	/ 2 )
	=	-0.86	/	0.0485
	=	-1,773.20 %

Universal Potash's ROCE % of for the quarter that ended in Jun. 2008 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2008 )		(Q: Mar. 2008 )		(Q: Jun. 2008 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2008 )		(Q: Mar. 2008 )		(Q: Jun. 2008 )
	=	-0.348	/	( ( (0.775 - 0.636)	+	(0.787 - 0.692) )	/ 2 )
	=	-0.348	/	( ( 0.139	+	0.095 )	/ 2 )
	=	-0.348	/	0.117
	=	-297.44 %

(1) Note: The EBIT data used here is four times the quarterly (Jun. 2008) EBIT data.

Universal Potash (OTCPK:UPCO) 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.

Universal Potash ROCE % Related Terms

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Universal Potash (Universal Potash) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Universal Potash Corp (OTCPK:UPCO) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1300 East Street, Fairport Harbor, OH, USA, 44077

Website

http://www.universalpotash.com

Universal Potash Corp is an exploration stage company. It is engaged in the mining of natural resources in the United States.

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