Empire District Electric Co (Empire District Electric Co) ROC (Joel Greenblatt) % : 7.45% (As of Sep. 2016)

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What is Empire District Electric Co ROC (Joel Greenblatt) %?

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Empire District Electric Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 was 7.45%.

The historical rank and industry rank for Empire District Electric Co's ROC (Joel Greenblatt) % or its related term are showing as below:

EDE's ROC (Joel Greenblatt) % is not ranked ^*
in the Utilities - Regulated industry.
Industry Median: 11.16
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

Empire District Electric Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.

Empire District Electric Co ROC (Joel Greenblatt) % Historical Data

The historical data trend for Empire District Electric Co's ROC (Joel Greenblatt) % 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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Empire District Electric Co ROC (Joel Greenblatt) % Chart

Empire District Electric Co Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROC (Joel Greenblatt) %

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6.02

5.77

6.00

5.87

5.10

Empire District Electric Co Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
ROC (Joel Greenblatt) %	Get a 7-Day Free Trial															7.03	4.57	4.74	4.98	7.45

Competitive Comparison of Empire District Electric Co's ROC (Joel Greenblatt) %

For the Utilities - Regulated Electric subindustry, Empire District Electric Co's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Empire District Electric Co's ROC (Joel Greenblatt) % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Empire District Electric Co's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Empire District Electric Co's ROC (Joel Greenblatt) % falls into.

Empire District Electric Co ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %

EBIT

Average of (Net fixed Assets

Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

	Working Capital		(Q: Jun. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(58.114	+	57.735	+	26.459)	-	(66.889	+	15.016	+	13.737)
=	46.666

	Working Capital		(Q: Sep. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(66.708	+	57.515	+	27.728)	-	(78.994	+	15.156	+	20.088)
=	37.713

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Empire District Electric Co for the quarter that ended in Sep. 2016 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2016 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2016		Q: Sep. 2016
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	155.88	/	( ( (2048.583 + max(46.666, 0))	+	(2048.97 + max(37.713, 0)) )	/	2 )
=	155.88	/	( ( 2095.249	+	2086.683 )	/	2 )
=	155.88	/	2090.966
=	7.45 %

Note: The EBIT data used here is four times the quarterly (Sep. 2016) EBIT data.

Empire District Electric Co (NYSE:EDE) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.

Empire District Electric Co ROC (Joel Greenblatt) % Related Terms

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Empire District Electric Co (Empire District Electric Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Empire District Electric Co (NYSE:EDE) » Definitions » ROC (Joel Greenblatt) %

Traded in Other Exchanges

N/A

Address

Website

http://www.empiredistrict.com

Empire District Electric Co is a Kansas corporation organized in 1909. The Company is an operating public utility engaged in the generation, purchase, transmission, distribution and sale of electricity in parts of Missouri, Kansas, Oklahoma and Arkansas. The Company operates its businesses as three segments; Electric, Gas and Other. The Company also provides water service to three towns in Missouri. The Company, along with its subsidiary The Empire District Gas Company, is engaged in the distribution of natural gas in Missouri. The Other segment consists of fiber optics business. As of December 31, 2013 the Company's electric operations serve approximately 168,800 customers and gas operations serve approximately 44,000 customers. The territory served by electric operations embraces an area of about 10,000 square miles, located principally in southwestern Missouri, and also includes smaller areas in southeastern Kansas, northeastern Oklahoma and northwestern Arkansas. The Company supplies electric service at retail to 119 incorporated communities as of December 31, 2013, and to various unincorporated areas and at wholesale to four municipally owned distribution systems. The Company operates under franchises having original terms of twenty years or longer in the incorporated communities. The three largest classes of on-system customers are residential, commercial and industrial. The largest single on-system wholesale customer is the city of Monett, Missouri. The Company currently supplements its on-system generating capacity with purchases of capacity and energy from other sources in order to meet the demands of its customers and the capacity margins applicable under current pooling agreements and National Electric Reliability Council rules. The generating facilities consist of three coal-fired generating plants, two natural gas generating plants and one hydroelectric generating plant. The Company's gas operations serve customers in northwest, north central and west central Missouri. As of December 31, 2013, gas operations served approximately 44,000 customers. The Company provides natural gas distribution to 48 communities and 377 transportation customers as of December 31, 2013. At December 31, 2013 the principal gas utility properties of the Company consisted of approximately 87 miles of transmission mains and approximately 1,160 miles of distribution mains. The three pipelines that serve the Company's gas customers are Southern Star Central Gas Pipeline, Panhandle Eastern Pipe Line Company and ANR Pipeline Company. The Company is subject to the jurisdiction of the Missouri Public Service Commission (MPSC), the State Corporation Commission of the State of Kansas (KCC), the Corporation Commission of Oklahoma (OCC) and the Arkansas Public Service Commission (APSC) with respect to services and facilities, rates and charges, regulatory accounting, valuation of property, depreciation and various other matters.

Executives

Herbert J Schmidt	director	1950 LAKE RIDGE DRIVE, THE VILLAGES FL 32162
Ross C Hartley	director	P O BOX 477 TENTON VILLAGE WY 83025
Thomas M Ohlmacher	director	P O BOX 1400, RAPID CITY SD 57709-1400
Bonnie Cruickshank Lind	director	3460 PRESTON RIDGE ROAD, ALPHARETTA GA 30005
Francis E Jeffries	director	800 SCUDDERS HILL ROAD, PLAINSBORO NJ 08536