ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. UTi Worldwide's annualized return on capital (ROC %) for the quarter that ended in Oct. 2015 was -6.49%.
As of today (2024-05-06), UTi Worldwide's WACC % is 0.00%. UTi Worldwide's ROC % is 0.00% (calculated using TTM income statement data).
UTi Worldwide earns returns that do not match up to its cost of capital. It will destroy value as it grows.
UTi Worldwide ROC % Historical Data
The historical data trend for UTi Worldwide'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.
Note:
The Operating Income data used here is four times the quarterly (Oct. 2015) 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.
UTi Worldwide (NAS:UTIW) 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, UTi Worldwide's WACC % is 0.00%. UTi Worldwide's ROC % is 0.00% (calculated using TTM income statement data).
UTi Worldwide 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.
UTi Worldwide ROC % Related Terms
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UTi Worldwide (UTi Worldwide) Business Description
UTi Worldwide Inc was incorporated in the British Virgin Islands on January 30, 1995 under the International Business Companies Act as an international business company and operates under the British Virgin Islands legislation governing corporations. The Company's segments include: Freight Forwarding and Contract Logistics and Distribution Segment. Freight Forwarding the Company do not own or operate aircraft or vessels and, consequently, contract with commercial carriers to arrange for the shipment of cargo. In Contract Logistics and Distribution Segment; provides services relating to value-added warehousing and the subsequent distribution of goods and materials in order to meet clients inventory needs and production or distribution schedules. The Company operates a network of freight forwarding offices and contract logistics and distribution centers in a total of 60 countries. In addition, it serves its clients in 100 additional countries through independent agent-owned offices. The Companys business is managed from main support offices located in Long Beach, California, and several other locations. The Companys primary services include air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics and truckload brokerage. It also provides other supply chain management services, including consulting, the coordination of purchase orders and customized management services. Through its supply chain planning and optimization services, it assists its clients in designing and implementing solutions that improve the predictability and visibility and reduce the overall costs of their supply chains. As a freight forwarder, it conducts business as an indirect carrier and occasionally as an authorized agent for an airline. It acts as an indirect carrier with respect to shipments of freight. It arranges for, and in many cases provides, pick-up and delivery service between the carrier and the location of the shipper or recipient. When it acts as an authorized agent for an airline or ocean carrier, it arranges for the transportation of individual shipments to the airline or ocean carrier. As part of its freight forwarding services, it provides customs brokerage services in the United States and other countries in which it operates. As part of its customs brokerage services, it prepares and files formal documentation required for clearance through customs agencies, obtain customs bonds, facilitate the payment of import duties on behalf of the importer, arrange for payment of collect freight charges, assist with determining and obtaining the commodity classifications for shipments and perform other related services. The Companys contract logistics services include receiving, deconsolidation and decontainerization, sorting, put away, consolidation, assembly, cargo loading and unloading, assembly of freight and protective packaging, warehousing services, order management, and customized distribution and
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