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Gigamon (Gigamon) ROC (Joel Greenblatt) % : 7.92% (As of Sep. 2017)


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What is Gigamon 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. Gigamon's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2017 was 7.92%.

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

GIMO's ROC (Joel Greenblatt) % is not ranked *
in the Hardware industry.
Industry Median: 9.57
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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


Gigamon ROC (Joel Greenblatt) % Historical Data

The historical data trend for Gigamon'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.

Gigamon ROC (Joel Greenblatt) % Chart

Gigamon Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial 326.43 -853.74 -337.47 138.18 286.56

Gigamon Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 362.24 379.40 -210.68 -355.12 7.92

Competitive Comparison of Gigamon's ROC (Joel Greenblatt) %

For the Communication Equipment subindustry, Gigamon'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.


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

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

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



Gigamon 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. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(63.519 + 14.301 + 12.176) - (28.831 + 65.652 + 0)
=-4.487

Working Capital(Q: Sep. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(71.741 + 15.472 + 12.048) - (32.482 + 69.96 + 0)
=-3.181

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Gigamon for the quarter that ended in Sep. 2017 can be restated as:

ROC (Joel Greenblatt) %(Q: Sep. 2017 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2017  Q: Sep. 2017
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1.388/( ( (14.299 + max(-4.487, 0)) + (20.735 + max(-3.181, 0)) )/ 2 )
=1.388/( ( 14.299 + 20.735 )/ 2 )
=1.388/17.517
=7.92 %

Note: The EBIT data used here is four times the quarterly (Sep. 2017) 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.


Gigamon  (NYSE:GIMO) 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.


Gigamon ROC (Joel Greenblatt) % Related Terms

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


Gigamon (Gigamon) Business Description

Industry
Traded in Other Exchanges
N/A
Address
Gigamon Inc develops designs and sells solutions and products that deliver visibility of traffic across networks. It serves global enterprises, service providers and governments.
Executives
John H Kispert director
Dario Zamarian director 3300 OLCOTT STREET, SANTA CLARA CA 95054
Paul Hooper director, officer: Chief Executive Officer 3585 MONROE STREET, SANTA CLARA CA 95051
Paul J Milbury director
Coviello Arthur W Jr director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Rex S Jackson officer: Chief Financial Officer C/O SYMYX TECHNOLOGIES, INC., 3100 CENTRAL EXPRESSWAY, SANTA CLARA CA 95051
Robert E Switz director 13625 TECHNOLOGY DRIVE, EDEN PRAIRIE MN 55344
Helmut Wilke officer: Sr. VP Worldwide Sales 3585 MONROE STREET, SANTA CLARA CA 95051
Kenneth A Goldman director C/O YAHOO! INC., 701 FIRST AVENUE, SUNNYVALE CA 94089
Highland Capital Partners Vii-b L P 10 percent owner 92 HAYDEN AVE, LEXINGTON MA 02421
Highland Capital Partners Vii-c Lp 10 percent owner 92 HAYDEN AVE, LEXINGTON MA 02421
Highland Capital Partners Vii Lp 10 percent owner 92 HAYDEN AVE, LEXINGTON MA 02421
Highland Entrepreneurs Fund Vii Limited Partnership 10 percent owner 92 HAYDEN AVENUE, LEXINGTON MA 02421
Highland Management Partners Vii, Llc 10 percent owner ONE BROADWAY, 16TH FLOOR, CAMBRIDGE MA 02142
Highland Management Partners Vii Limited Partnership 10 percent owner ONE BROADWAY, 16TH FLOOR, CAMBRIDGE MA 02142

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