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Red Lion Hotels (Red Lion Hotels) ROC (Joel Greenblatt) % : -29.26% (As of Sep. 2020)


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What is Red Lion Hotels 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. Red Lion Hotels's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2020 was -29.26%.

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

RLH's ROC (Joel Greenblatt) % is not ranked *
in the Travel & Leisure industry.
Industry Median: 9.29
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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


Red Lion Hotels ROC (Joel Greenblatt) % Historical Data

The historical data trend for Red Lion Hotels'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.

Red Lion Hotels ROC (Joel Greenblatt) % Chart

Red Lion Hotels Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.59 0.09 0.92 12.43 -12.32

Red Lion Hotels Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
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 -10.36 -13.30 -44.24 -35.35 -29.26

Competitive Comparison of Red Lion Hotels's ROC (Joel Greenblatt) %

For the Lodging subindustry, Red Lion Hotels'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.


Red Lion Hotels's ROC (Joel Greenblatt) % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Red Lion Hotels's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Red Lion Hotels 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. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(11.463 + 0 + 4.355) - (10.024 + 0 + 3.5527136788005E-15)
=5.794

Working Capital(Q: Sep. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(10.772 + 0 + 4.358) - (10.044 + 0 + 0)
=5.086

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Red Lion Hotels for the quarter that ended in Sep. 2020 can be restated as:

ROC (Joel Greenblatt) %(Q: Sep. 2020 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2020  Q: Sep. 2020
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-12.892/( ( (39.829 + max(5.794, 0)) + (37.422 + max(5.086, 0)) )/ 2 )
=-12.892/( ( 45.623 + 42.508 )/ 2 )
=-12.892/44.0655
=-29.26 %

Note: The EBIT data used here is four times the quarterly (Sep. 2020) 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 Lion Hotels  (NYSE:RLH) 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.


Red Lion Hotels ROC (Joel Greenblatt) % Related Terms

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


Red Lion Hotels (Red Lion Hotels) Business Description

Traded in Other Exchanges
N/A
Address
1550 Market Street, No. 350, Denver, CO, USA, 80202
Red Lion Hotels Corp is a hospitality group covering upscale, midscale and economy hotels with operations spread across the United States. It owns, manages and franchises hotels and owns and operates an event ticket distribution business. Their hotels are operated under the brands, Hotel RL, Red Lion Hotel, Red Lion Inn & Suites, GuestHouse and Settle Inn & Suites. It operates in two segments, Company Operated Hotels segment which involves providing room food and beverages at owned and leased hotels and Franchised hotels segment which includes licensing of brands to franchisees.
Executives
Frederic F Brace director 707 W. SMUGGLER ST, ASPEN CO 81611
R Carter Pate director 5739 WORTHAM LANE, DALLAS TX 75252
Ted Darnall director 1550 MARKET STREET #350 DENVER CO 80202
Janet L Hendrickson director 1550 MARKET STREET #425 DENVER CO 80202
Kenneth R Trammell director
Joseph B Megibow director 201 W NORHT RIVER DR #100, SPOKANE WA 99201
Linda C Coughlin director C/O CENDANT CORPORATION, ONE CAMPUS DRIVE, PARSIPPANY NJ 07840
Judith A Jarvis officer: E.V.P., G.C. 1550 MARKET STREET SUITE 425 DENVER CO 80202
Russell John Jester Jr officer: C.E.O. 1550 MARKET STREET SUITE 350 DENVER CO 80202
Gary Alan Kohn officer: E.V.P., C.F.O. 9540 SOUTH MAROON CIRCLE SUITE 300 ENGLEWOOD CO 80112
Paul Moerner officer: Chief Accouting Officer 1550 MARKET STREET #425 DENVER CO 80202
Nathan M. Troup officer: E.V.P., C.F.O. 1601 DRY CREEK DRIVE STE. 260 LONGMONT CO 80503
Harry Sladich officer: E.V.P. Franchise Ops & Sales 201 W NORTH RIVER DR. STE #100 SPOKANE WA 99201
Thomas L Mckeirnan officer: E.V.P. & General Counsel
Amy Humpreys director 1550 MARKET STREET #350 DENVER CO 80202

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