SELECT id, `name`, primary_key, `key`, treemapgroup, name_cn, zacks_table_name, compare_key, compare_display_name from gurufocu_main.financial_definition where termpagedisplay=1 and `key` = 'ROC_JOEL' GPK (Graphic Packaging Holding Co) ROC (Joel Greenblatt) %
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Graphic Packaging Holding Co (NYSE:GPK) » Definitions » ROC (Joel Greenblatt) %

Graphic Packaging Holding Co (Graphic Packaging Holding Co) ROC (Joel Greenblatt) %

: 19.88% (As of Dec. 2023)
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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. Graphic Packaging Holding Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 19.88%.

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

GPK' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 8.88   Med: 16.35   Max: 23.61
Current: 20.6

During the past 13 years, Graphic Packaging Holding Co's highest ROC (Joel Greenblatt) % was 23.61%. The lowest was 8.88%. And the median was 16.35%.

GPK's ROC (Joel Greenblatt) % is ranked better than
75.39% of 386 companies
in the Packaging & Containers industry
Industry Median: 10.315 vs GPK: 20.60

Graphic Packaging Holding Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 6.20% per year.

Graphic Packaging Holding Co ROC (Joel Greenblatt) % Historical Data

The historical data trend for Graphic Packaging Holding Co'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.

Graphic Packaging Holding Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.28 9.56 8.88 17.42 21.22

Graphic Packaging Holding Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC (Joel Greenblatt) % 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 Premium Member Only Premium Member Only Premium Member Only 20.41 24.05 18.49 19.57 19.88
Competitive Comparison

For the Packaging & Containers subindustry, Graphic Packaging Holding Co'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.

Graphic Packaging Holding Co ROC (Joel Greenblatt) % Distribution

For the Packaging & Containers industry and Consumer Cyclical sector, Graphic Packaging Holding Co's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Graphic Packaging Holding Co's ROC (Joel Greenblatt) % falls into.


Graphic Packaging Holding Co 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. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(881 + 1741 + 90) - (1422 + 0 + 254)
=1036

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(716 + 1754 + 94) - (1441 + 30 + 292)
=801

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Graphic Packaging Holding Co 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 )
=1156/( ( (4799 + max(1036, 0)) + (4992 + max(801, 0)) )/ 2 )
=1156/( ( 5835 + 5793 )/ 2 )
=1156/5814
=19.88 %

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.

Graphic Packaging Holding Co  (NYSE:GPK) 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.

Graphic Packaging Holding Co ROC (Joel Greenblatt) % Related Terms

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

Graphic Packaging Holding Co (Graphic Packaging Holding Co) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Graphic Packaging Holding Co (NYSE:GPK) » Definitions » ROC (Joel Greenblatt) %
Comparable Companies
CCK BERY REYN SON SEE SLGN WRK IP AMCR GEF BALL AVY PKG DUB:SK3 TSX:CCL.A XSWX:SIGN LSE:SMDS SZSE:002812 XPAR:VRLA OHEL:HUH1V
Traded in Other Exchanges
4W8:Germany 4W8:Germany
Address
1500 Riveredge Parkway, Suite 100, Atlanta, GA, USA, 30328
Website
https://www.graphicpkg.com
Graphic Packaging Holding Co is a holding company that manufactures and sells a variety of paper-based consumer packaging products through its subsidiaries. The company's two primary functions include the sale of paperboard packaging and the operation of paperboard mills. The paperboard packaging business includes packaging for beverages, including beer and soft drinks as well as food, including cereal, frozen foods, and pet foods. The firm also sells paperboard packaging for household products, including dishwasher and laundry detergent and personal care products. Graphic Packaging operates papermills that sell laminated and coated packaging products to third parties. The majority of revenue comes from the Americas.
Executives
Stephen R. Scherger officer: SVP, Consumer Packaging Div. 3901 SULGRAVE ROAD, RICHMOND VA 23221
Lynn A Wentworth director CINCINNATI BELL INC, P O BOX 2301, CINCINNATI OH 45201
Michael James Farrell officer: EVP, Mills Division 1500 RIVEREDGE PARKWAY, SUITE 100, ATLANTA GA 30328
Jean Francois Roche officer: SVP and President, EMEA 1500 RIVEREDGE PARKWAY, SUITE 100, AT GA 30328
Elizabeth Spence officer: EVP, Human Resources 1500 RIVEREDGE PARKWAY, N.W., SUITE 100, ATLANTA GA 30328
Aziz Aghili director 5706 KIRKRIDGE TRAIL, ROCHESTER HILLS MI 48306
Margie Kay Bidlingmaier officer: EVP, President, Americas Busi 1500 RIVEREDGE PARKWAY, SUITE 100, ATLANTA GA 30328
Mary K Rhinehart director 821 17TH STREET, DENVER CO 80202
Joseph P Yost officer: SVP, Supply Chain 814 LIVINGSTON COURT, MARIETTA GA 30067
Larry M Venturelli director 2000 M-63N, BENTON HARBOR MI 49022
Charles D Lischer officer: SVP & CAO 2500 WINDY RIDGE PARKWAY, SUITE 700, ATLANTA GA 30339
Stacey J. Panayiotou officer: EVP, Human Resources 9200 W. 108TH CIRCLE, WESTMINSTER CO 80021
Robert Hagemann director 3 GIRALDA FARMS, MADISON NJ 07940
Laurie Brlas director C/O ALBEMARLE CORPORATION, 4250 CONGRESS ST STE 900, CHARLOTTE NC 28209
Dean A Scarborough director 150 N. ORANGE GROVE BLVD, PASADENA CA 91103