Towerstream (Towerstream) ROC (Joel Greenblatt) %

: -40.18% (As of Dec. 2018)

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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. Towerstream's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2018 was -40.18%.

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

TWER's ROC (Joel Greenblatt) % is not ranked ^*
in the Telecommunication Services industry.
Industry Median: 13.645
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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

Towerstream ROC (Joel Greenblatt) % Historical Data

The historical data trend for Towerstream'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.

Towerstream Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

ROC (Joel Greenblatt) %

-27.54

-50.22

-71.44

-51.26

-30.78

Towerstream Quarterly Data
	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18
ROC (Joel Greenblatt) %																-25.30	-43.05	-13.32	-24.81	-40.18

Competitive Comparison

For the Telecom Services subindustry, Towerstream'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.

Towerstream ROC (Joel Greenblatt) % Distribution

For the Telecommunication Services industry and Communication Services sector, Towerstream's ROC (Joel Greenblatt) % distribution charts can be found below:

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

Towerstream 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. 2018 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.538	+	0	+	0.528)	-	(1.034	+	1.081	+	1.012)
=	-2.061

	Working Capital		(Q: Dec. 2018 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.538	+	0	+	0.601)	-	(0.986	+	1.145	+	1.005)
=	-1.997

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Towerstream for the quarter that ended in Dec. 2018 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2018 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2018		Q: Dec. 2018
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-4.284	/	( ( (11.246 + max(-2.061, 0))	+	(10.078 + max(-1.997, 0)) )	/	2 )
=	-4.284	/	( ( 11.246	+	10.078 )	/	2 )
=	-4.284	/	10.662
=	-40.18 %

Note: The EBIT data used here is four times the quarterly (Dec. 2018) EBIT data.

Towerstream (OTCPK:TWER) 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.

Towerstream ROC (Joel Greenblatt) % Related Terms

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Towerstream (Towerstream) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Towerstream Corp (OTCPK:TWER) » Definitions » ROC (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

N/A

Address

76 Hammarlund Way, Middletown, RI, USA, 02842

Website

http://www.towerstream.com

Towerstream Corp is a US-based company providing fixed wireless services. The company operates through the Fixed Wireless Services business segment. Its fixed wireless service provides bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data and video services. The company installs receivers and antennas on rooftops to establish a wireless connection between the customer Location to one or more of its points of presence.

Executives

William John Bush	director	539 BRYANT STREET, SUITE 403, SAN FRANCISCO CA 94107
Paul Koehler	director	C/O TOWERSTREAM CORPORATION, 55 HAMMARLUND WAY, MIDDLETOWN RI 02842
Don Macneil	director	311 BROADWAY, POINT PLEASANT BEACH NJ 08742
Ernest Ortega	officer: Chief Executive Officer	18934 CANOE LANDING COURT, LEESBURG VA 20176
Jeffrey M Thompson	director, officer: President and CEO	5 SHELL CASTLE CLUB, PALMAS DEL MAR PR 00791
Joseph P Hernon	officer: Chief Financial Officer	1607 PONCE DE LEON AVENUE, SUITE 407, SAN JUAN PR 00909
Kilguss George E Iii	officer: Chief Financial Officer	C/O VERISIGN, INC., 12061 BLUEMONT WAY, RESTON VA 20190