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Mattress Firm Holding (Mattress Firm Holding) ROC (Joel Greenblatt) % : 18.66% (As of Jul. 2016)


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What is Mattress Firm Holding 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. Mattress Firm Holding's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2016 was 18.66%.

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

MFRM's ROC (Joel Greenblatt) % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 10.03
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

Mattress Firm Holding's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


Mattress Firm Holding ROC (Joel Greenblatt) % Historical Data

The historical data trend for Mattress Firm Holding'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.

Mattress Firm Holding ROC (Joel Greenblatt) % Chart

Mattress Firm Holding Annual Data
Trend Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial 68.41 62.14 60.71 44.17 48.09

Mattress Firm Holding Quarterly Data
Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16
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 61.95 63.02 39.35 -159.97 18.66

Competitive Comparison of Mattress Firm Holding's ROC (Joel Greenblatt) %

For the Specialty Retail subindustry, Mattress Firm Holding'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.


Mattress Firm Holding's ROC (Joel Greenblatt) % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Mattress Firm Holding's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Mattress Firm Holding's ROC (Joel Greenblatt) % falls into.



Mattress Firm Holding 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: Apr. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(68.171 + 254.378 + 76.761) - (388.134 + 41.727 + 0)
=-30.551

Working Capital(Q: Jul. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(78.673 + 253.105 + 126.738) - (453.917 + 43.084 + 0)
=-38.485

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Mattress Firm Holding for the quarter that ended in Jul. 2016 can be restated as:

ROC (Joel Greenblatt) %(Q: Jul. 2016 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Apr. 2016  Q: Jul. 2016
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=89.98/( ( (508.526 + max(-30.551, 0)) + (455.863 + max(-38.485, 0)) )/ 2 )
=89.98/( ( 508.526 + 455.863 )/ 2 )
=89.98/482.1945
=18.66 %

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


Mattress Firm Holding  (NAS:MFRM) 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.


Mattress Firm Holding ROC (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Mattress Firm Holding's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Mattress Firm Holding (Mattress Firm Holding) Business Description

Traded in Other Exchanges
N/A
Address
Mattress Firm Holding Corp was incorporated in Delaware in January 2007. It is engaged in retail sale of mattresses and bedding-related products in metropolitan areas in the United States through company-operated and franchise-operated mattress specialty stores. The Company and its franchisees operated approximately 2,400 stores, under the Mattress Firm name, in 105 markets across 41 states. The Company's operating segments consist of its: company-operated store operations, with each geographic region considered a separate operating segment; e-commerce website operations; multi-channel sales operations, consisting of special events; and franchise operations, which consists of franchise fees and royalty income earned on the sales from franchisee-operated mattress specialty stores. The Company-operated store regions, e-commerce website and multi-channel operating segments are aggregated into single segment ("retail segment"). It offers approximately over 75 different models and styles of conventional and specialty mattresses, Conventional mattresses, Specialty mattresses, furniture and accessories, including bed frames, mattress pads and pillows. There are two distribution channels of Company, Wholesale & Retail. The U.S. wholesale mattress industry includes mattresses and their supporting box springs. The U.S. retail mattress market is made up of mattress specialty retailers, furniture retailers and department stores. It operates 55 distribution centers, supporting all of its company-operated stores. The Company's important trademarks include Mattress Firm, Comfort By Color, Mattress Firm Red Carpet Delivery Service, Hampton & Rhodes, Mattress Firm Super Center, Happiness Guarantee, Sleep Happy & among others. The Company's operations are subject to federal, state and local consumer protection regulations and other regulations relating specifically to the bedding industry.
Executives
Joe Fortunato director 300 SIXTH AVENUE, PITTSBURGH PA 15222
John W Childs director, 10 percent owner 111 HUNTINGTON AVENUE, SUITE 2900, BOSTON MA 02199
Robert E. Creager director 2728 TANGLEY ROAD, HOUSTON TX 77005
William E Watts director 111 HUNTINGTON AVENUE, SUITE 2900, BOSTON MA 02199
Standard Latitude Master Fund Ltd. 10 percent owner 9 WEST 57TH STREET, 47TH FLOOR, NEW YORK NY 10019
David J. Millstone 10 percent owner C/O 40 NORTH MANAGEMENT LLC, 9 WEST 57TH STREET, 47TH FLOOR, NEW YORK NY 10019
David S. Winter 10 percent owner C/O 40 NORTH MANAGEMENT LLC, 9 WEST 57TH STREET, 47TH FLOOR, NEW YORK NY 10019
Standard Latitude Fund Lp 10 percent owner 9 WEST 57TH STREET, 47TH FLOOR, NEW YORK NY 10019
Si Gp Iii Llc 10 percent owner 9 WEST 57TH STREET, 47TH FLOOR, NEW YORK NY 10019
40 North Management Llc 10 percent owner 9 WEST 57TH STREET, 47TH FLOOR, NEW YORK NY 10019
Berkshire Partners Holdings Llc director, 10 percent owner 200 CLARENDON STREET, 35TH FLOOR, BOSTON MA 02116
Berkshire Partners Llc director, 10 percent owner 200 CLARENDON STREET, 35TH FLOOR, BOSTON MA 02116
Berkshire Investors Iii Llc director, 10 percent owner 200 CLARENDON STREET, 35TH FLOOR, BOSTON MA 02116
Berkshire Investors Iv Llc director, 10 percent owner 200 CLARENDON STREET, 35TH FLOOR, BOSTON MA 02116
L.p. Bpsp, director, 10 percent owner 200 CLARENDON STREET, 35TH FLOOR, BOSTON MA 02116

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