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RIT Technologies (RIT Technologies) ROC (Joel Greenblatt) % : -6.41% (As of Sep. 2015)


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What is RIT Technologies 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. RIT Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2015 was -6.41%.

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

RITT's ROC (Joel Greenblatt) % is not ranked *
in the Hardware industry.
Industry Median: 10.08
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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


RIT Technologies ROC (Joel Greenblatt) % Historical Data

The historical data trend for RIT Technologies'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.

RIT Technologies ROC (Joel Greenblatt) % Chart

RIT Technologies Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -97.00 -93.92 -279.35 -246.28 -237.98

RIT Technologies Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 -144.49 -291.46 3.31 9.68 -6.41

Competitive Comparison of RIT Technologies's ROC (Joel Greenblatt) %

For the Communication Equipment subindustry, RIT Technologies'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.


RIT Technologies's ROC (Joel Greenblatt) % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, RIT Technologies's ROC (Joel Greenblatt) % distribution charts can be found below:

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



RIT Technologies 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. 2015 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5.951 + 3.495 + 0.414) - (2.349 + 0 + 0.921)
=6.59

Working Capital(Q: Sep. 2015 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7.118 + 3.194 + 0.394) - (3.631 + 0 + 0)
=7.075

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of RIT Technologies for the quarter that ended in Sep. 2015 can be restated as:

ROC (Joel Greenblatt) %(Q: Sep. 2015 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2015  Q: Sep. 2015
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-0.468/( ( (0.445 + max(6.59, 0)) + (0.494 + max(7.075, 0)) )/ 2 )
=-0.468/( ( 7.035 + 7.569 )/ 2 )
=-0.468/7.302
=-6.41 %

Note: The EBIT data used here is four times the quarterly (Sep. 2015) 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.


RIT Technologies  (OTCPK:RITT) 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.


RIT Technologies ROC (Joel Greenblatt) % Related Terms

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RIT Technologies (RIT Technologies) Business Description

Traded in Other Exchanges
N/A
Address
24 Raoul Wallenberg Street, Tel Aviv, ISR, 69719
RIT Technologies Ltd provides Intelligent Infrastructure Management solutions and develops indoor optical wireless technology solutions. The company's products include PatchView that provides security and network utilization for data centers, communication rooms and work space environments; and Beamcaster that provides IWON technology solutions mainly for open-space offices. Its Intelligent Infrastructure Management solutions are deployed in various organizations including data centers in the private sector, government agencies, financial institutions, airport authorities, healthcare and education institutions.
Executives
Marxe Austin W & Greenhouse David M 10 percent owner C/O SPECIAL SITUATIONS FUNDS, 527 MADISON AVENUE, SUITE 2600, NEW YORK NY 10022

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