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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. Red Robin Gourmet Burgers's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -4.36%.
The historical rank and industry rank for Red Robin Gourmet Burgers's ROC (Joel Greenblatt) % or its related term are showing as below:
During the past 13 years, Red Robin Gourmet Burgers's highest ROC (Joel Greenblatt) % was 12.19%. The lowest was -30.59%. And the median was -0.37%.
Red Robin Gourmet Burgers's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The historical data trend for Red Robin Gourmet Burgers'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.
Red Robin Gourmet Burgers Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial | -1.60 | -30.59 | -4.47 | -7.84 | 0.87 |
Red Robin Gourmet Burgers Quarterly Data | ||||||||||||||||||||
Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Apr23 | Sep23 | Dec23 | |
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial | -4.45 | -22.83 | 2.58 | -1.22 | -4.36 |
For the Restaurants subindustry, Red Robin Gourmet Burgers'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.
For the Restaurants industry and Consumer Cyclical sector, Red Robin Gourmet Burgers's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Red Robin Gourmet Burgers's ROC (Joel Greenblatt) % falls into.
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) |
= | (11.819 | + | 27.013 | + | 25.213) | - | (121.343 | + | 31.98 | + | 0) |
= | -89.278 |
Working Capital | (Q: Dec. 2023 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (21.592 | + | 26.839 | + | 19.716) | - | (84.347 | + | 36.067 | + | 21.165) |
= | -73.432 |
When net working capital is negative, 0 is used.
So ROC (Joel Greenblatt) % of Red Robin Gourmet Burgers 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 ) |
= | -27.424 | / | ( ( (636.335 + max(-89.278, 0)) | + | (622.867 + max(-73.432, 0)) ) | / | 2 ) |
= | -27.424 | / | ( ( 636.335 | + | 622.867 ) | / | 2 ) |
= | -27.424 | / | 629.601 | ||||
= | -4.36 % |
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.
Red Robin Gourmet Burgers (NAS:RRGB) 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.
Thank you for viewing the detailed overview of Red Robin Gourmet Burgers's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Archon Capital Management Llc | 10 percent owner | 1100 19TH AVENUE EAST, SEATTLE WA 98112 |
Jyoti A. Lynch | officer: CHIEF TECHNOLOGY OFFICER | 5830 GRANITE PARKWAY, 3RD FLOOR, PLANO TX 75024 |
Gerard Johan Hart | director | 6040 DUTCHMANS LANE, SUITE 200, LOUISVILLE KY 40205 |
Christofilis, Constantinos | 10 percent owner | 2010 EAST GALER STREET, SEATTLE WA 98112 |
Nicole Miller Regan | director | 10000 E GEDDES AVE, STE 500, ENGLEWOOD CO 80112 |
Allison A. Page | director | 6312 S FIDDLERS GREEN CIRCLE, SUITE 200N, GREENWOOD VILLAGE CO 80111 |
Kevin E. Mayer | officer: Chief Marketing Officer | 7755 CENTER AVE., SUITE 300, HUNTINGTON BEACH CA 92647 |
Geoffrey Wayne Davis | officer: Chief Human Resource Officer | 6312 S FIDDLERS GREEN CIRCLE, 200N, GREENWOOD VILLAGE CO 80111 |
Sarah A. Mussetter | officer: CHIEF LEGAL OFFICER | HOLME ROBERTS & OWEN LLP, 1700 LINCOLN STREET, SUITE 4100, DENVER CO 80203 |
David Pace | director | |
Thomas G. Conforti | director | WYNDHAM WORLDWIDE CORPORATION, 22 SYLVAN WAY, PARSIPPANY NJ 07054 |
Joshua Todd Wilson | officer: CHIEF FINANCIAL OFFICER | 10000 E GEDDES AVE, STE 500, ENGLEWOOD CO 80112 |
Steve Lumpkin | director | 10580 W. 192ND PLACE, SPRING HILLS KS 60083 |
Cheri Kinder | officer: Chief Accounting Officer | 14800 LANDMARK BOULEVARD, SUITE 500, ADDISON TX 75254 |
Murphy Paul J B Iii | director, officer: President and CEO |
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