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Fortum Oyj (FRA:FOT) ROC (Joel Greenblatt) % : 30.90% (As of Dec. 2023)


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What is Fortum Oyj 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. Fortum Oyj's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 30.90%.

The historical rank and industry rank for Fortum Oyj's ROC (Joel Greenblatt) % or its related term are showing as below:

FRA:FOT' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -0.95   Med: 13.21   Max: 27.95
Current: 27.95

During the past 13 years, Fortum Oyj's highest ROC (Joel Greenblatt) % was 27.95%. The lowest was -0.95%. And the median was 13.21%.

FRA:FOT's ROC (Joel Greenblatt) % is ranked better than
83.64% of 428 companies
in the Utilities - Independent Power Producers industry
Industry Median: 7.37 vs FRA:FOT: 27.95

Fortum Oyj's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 11.10% per year.


Fortum Oyj ROC (Joel Greenblatt) % Historical Data

The historical data trend for Fortum Oyj'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.

* Premium members only.

Fortum Oyj ROC (Joel Greenblatt) % Chart

Fortum Oyj Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.61 16.17 23.49 13.95 26.68

Fortum Oyj Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC (Joel Greenblatt) % 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 -13.25 46.05 15.77 17.99 30.90

Competitive Comparison of Fortum Oyj's ROC (Joel Greenblatt) %

For the Utilities - Renewable subindustry, Fortum Oyj'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.


Fortum Oyj's ROC (Joel Greenblatt) % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Fortum Oyj's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Fortum Oyj's ROC (Joel Greenblatt) % falls into.



Fortum Oyj 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: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(831 + 322 + 1330) - (1250 + 0 + 1060)
=173

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1120 + 452 + 773) - (1181 + 0 + 1190)
=-26

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Fortum Oyj for the quarter that ended in Dec. 2023 can be restated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2032/( ( (6366 + max(173, 0)) + (6612 + max(-26, 0)) )/ 2 )
=2032/( ( 6539 + 6612 )/ 2 )
=2032/6575.5
=30.90 %

Note: The EBIT data used here is four times the quarterly (Dec. 2023) 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.


Fortum Oyj  (FRA:FOT) 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.


Fortum Oyj ROC (Joel Greenblatt) % Related Terms

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Fortum Oyj (FRA:FOT) Business Description

Address
Keilalahdentie 2-4, CD Building, P.O. Box 100, Espoo, FIN, FI-00048
Fortum Oyj is a Finnish energy company that operates power plants, which use renewable energy sources (hydro, nuclear, and solar power) to sell electricity, heat, cooling, and power products and services. The company mainly operates in Nordic and Baltic countries, Russia, Poland, and India. Its main divisions of the company are generation (large-scale power production), city solutions (sustainable energy solutions), Russia (all Russian operations), technology and new ventures (research and development and in-house incubator for startups), mergers and acquisitions, and solar and wind development. The company's operating segments are Generation, City Solutions, Consumer Solutions, Russia, and Other.

Fortum Oyj (FRA:FOT) Headlines

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