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KapStone Paper And Packaging (KapStone Paper And Packaging) ROC (Joel Greenblatt) % : 22.94% (As of Sep. 2018)


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What is KapStone Paper And Packaging 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. KapStone Paper And Packaging's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2018 was 22.94%.

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

KS's ROC (Joel Greenblatt) % is not ranked *
in the Forest Products industry.
Industry Median: 6.09
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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


KapStone Paper And Packaging ROC (Joel Greenblatt) % Historical Data

The historical data trend for KapStone Paper And Packaging'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.

KapStone Paper And Packaging ROC (Joel Greenblatt) % Chart

KapStone Paper And Packaging Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.44 18.96 11.80 9.43 10.96

KapStone Paper And Packaging Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 12.18 17.92 12.53 17.51 22.94

Competitive Comparison of KapStone Paper And Packaging's ROC (Joel Greenblatt) %

For the Paper & Paper Products subindustry, KapStone Paper And Packaging'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.


KapStone Paper And Packaging's ROC (Joel Greenblatt) % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, KapStone Paper And Packaging's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where KapStone Paper And Packaging's ROC (Joel Greenblatt) % falls into.



KapStone Paper And Packaging 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. 2018 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(502.018 + 342.068 + 23.232) - (300.579 + 0 + 69.044)
=497.695

Working Capital(Q: Sep. 2018 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(488.007 + 348.432 + 18.177) - (306.966 + 0 + 83.547)
=464.103

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of KapStone Paper And Packaging for the quarter that ended in Sep. 2018 can be restated as:

ROC (Joel Greenblatt) %(Q: Sep. 2018 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2018  Q: Sep. 2018
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=445.424/( ( (1465.287 + max(497.695, 0)) + (1456.648 + max(464.103, 0)) )/ 2 )
=445.424/( ( 1962.982 + 1920.751 )/ 2 )
=445.424/1941.8665
=22.94 %

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


KapStone Paper And Packaging  (NYSE:KS) 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.


KapStone Paper And Packaging ROC (Joel Greenblatt) % Related Terms

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


KapStone Paper And Packaging (KapStone Paper And Packaging) Business Description

Traded in Other Exchanges
N/A
Address
KapStone Paper and Packaging Corp produces and sells containerboard, corrugated products, and specialty paper. The company organizes itself into two segments based on function: paper and packaging and distribution. The paper and packaging segment, which generates the majority of revenue, sells packaging products primarily to food and beverage manufacturers and retailers. The segment also sells specialty paper products. The distribution segment operates a packaging materials distribution business under the Victory and Golden State Container trade names. The vast majority of revenue comes from the United States.
Executives
Paula H Cholmondeley director 221 W PHILADELPHIA ST, SUITE 60W, YORK PA 17401-2991
Matthew H Paull director MCDONALDS CORP, 2915 JORIE BLVD, OAK BROOK IL 60523
Roger W Stone director, officer: Executive Chairman KAPSTONE PAPER & PKG. CORP., 1101 SKOKIE BOULEVARD, STE 300, NORTHBROOK IL 60062-6141
Robert J Bahash director 1221 AVENUE OF THE AMERICAS, NEW YORK NY 10020
David P Storch director C/O AAR CORP, 1111 NICHOLAS BLVD, 1111 NICHOLAS BLVD IL 60007
Kathryn D. Ingraham officer: VP, Secy & Gen Counsel KAPSTONE PAPER AND PACKAGING CORPORATION, 1101 SKOKIE BLVD., STE. 300, NORTHBROOK IL 60062
Brian R Gamache director
Randy J. Nebel officer: Exec. VP. Integrated Packaging KAPSTONE PAPER AND PACKAGING CORP. 1101 SKOKIE BLVD., SUITE 300 NORTHBROOK IL 60062
Andrea K Tarbox officer: Exec. VP and CFO ONE NORTHFIELD PLAZA, STE. 480, NORTHFIELD IL 60093
Maurice S Reznik director C/O MAIDENFORM BRANDS, INC., 154 AVENUE E, BAYONNE NJ 07002
Jonathan R Furer director 45 PARK STREET, TENAFLY NJ 07670
S Jay Stewart director 100 NORTH RIVERSIDE PLAZA, CHICAGO IL 60606
Harvey Hanerfeld 10 percent owner 1919 PENNSYLVANIA AVENUE NW, SUITE 725, WASHINGTON DC 20006
Ned L Sherwood 10 percent owner 54 MORRIS LN, SCARSDALE NY 10583
Jonathan M Glaser 10 percent owner 11601 WILSHIRE BLVD., SUITE 2180, LOS ANGELES CA 90025

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