WuXi PharmaTech (Cayman) (WuXi PharmaTech (Cayman)) ROC (Joel Greenblatt) % : 20.79% (As of Sep. 2015)

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What is WuXi PharmaTech (Cayman) 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. WuXi PharmaTech (Cayman)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2015 was 20.79%.

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

WX's ROC (Joel Greenblatt) % is not ranked ^*
in the Medical Diagnostics & Research industry.
Industry Median: -13.89
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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

WuXi PharmaTech (Cayman) ROC (Joel Greenblatt) % Historical Data

The historical data trend for WuXi PharmaTech (Cayman)'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.

WuXi PharmaTech (Cayman) ROC (Joel Greenblatt) % Chart

WuXi PharmaTech (Cayman) Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROC (Joel Greenblatt) %

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45.60

36.38

32.73

39.86

35.62

WuXi PharmaTech (Cayman) Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
ROC (Joel Greenblatt) %	Get a 7-Day Free Trial															29.18	58.97	15.55	14.50	20.79

Competitive Comparison of WuXi PharmaTech (Cayman)'s ROC (Joel Greenblatt) %

For the Diagnostics & Research subindustry, WuXi PharmaTech (Cayman)'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.

WuXi PharmaTech (Cayman)'s ROC (Joel Greenblatt) % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, WuXi PharmaTech (Cayman)'s ROC (Joel Greenblatt) % distribution charts can be found below:

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

WuXi PharmaTech (Cayman) 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. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(179.014	+	61.405	+	38.434)	-	(131.18	+	30.804	+	24.037)
=	92.832

	Working Capital		(Q: Sep. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(193.718	+	62.766	+	47.718)	-	(134.688	+	39.587	+	33.266)
=	96.661

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of WuXi PharmaTech (Cayman) for the quarter that ended in Sep. 2015 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2015 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2015		Q: Sep. 2015
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	103.284	/	( ( (395.562 + max(92.832, 0))	+	(408.561 + max(96.661, 0)) )	/	2 )
=	103.284	/	( ( 488.394	+	505.222 )	/	2 )
=	103.284	/	496.808
=	20.79 %

Note: The EBIT data used here is four times the quarterly (Sep. 2015) EBIT data.

WuXi PharmaTech (Cayman) (NYSE:WX) 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.

WuXi PharmaTech (Cayman) ROC (Joel Greenblatt) % Related Terms

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WuXi PharmaTech (Cayman) (WuXi PharmaTech (Cayman)) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » WuXi PharmaTech (Cayman) Inc (NYSE:WX) » Definitions » ROC (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.wuxiapptec.com

WuXi PharmaTech (Cayman) Inc was incorporated on March 16, 2007 and commenced operations and began offering pharmaceutical and biotechnology R&D outsourcing services in 2001. The Company is a pharmaceutical, biotechnology and medical device R&D services company, with operations in China and the United States. It provides a portfolio of laboratory and manufacturing services throughout the drug and medical device R&D process to its customers, which includes pharmaceutical, biotechnology and medical device companies. Its services are designed to assist its customers in shortening the cycle and lowering the cost of pharmaceutical and medical device R&D by providing cost-effective and efficient outsourcing solutions. Its primary China-based facilities include 1,127,000 square feet of facilities in the China (Shanghai) Pilot Free Trade Zone used for synthetic chemistry, biology, medicinal chemistry, DMPK, formulation, analytical development, manufacturing process chemistry, research manufacturing, bioanalytical services, genomics, and biologics drug discovery and development; an R&D center in Tianjin engaged in synthetic chemistry and medicinal chemistry; a facility in Wuhan providing services in synthetic chemistry and medicinal chemistry; a small-scale cGMP clinical manufacturing facility and a large-scale cGMP commercial manufacturing plant in the Jinshan district of Shanghai; a large-scale non-GMP manufacturing plant in Changzhou; a preclinical toxicology facility in Suzhou; a laboratory for manufacturing research reagents in Suzhou; and a biologics manufacturing facility in Wuxi. It also offers services in biologics and medical device testing in three FDA-registered facilities in the United States. The Company has two segments: Laboratory services and Manufacturing services. Laboratory services are provided for pharmaceutical, biotechnology and medical device companies. China-based laboratory services for pharmaceutical and biotechnology companies include services for small molecules, such as synthetic chemistry, biology, medicinal chemistry, DMPK/ADME, formulation, analytical chemistry, toxicology, clinical development, bioanalytical services, genomics, research reagent production, and clinical services, as well as services for discovery and development of biologics. U.S.-based laboratory services include testing services for biologics, medical devices, and combination products. Manufacturing services include the development of manufacturing processes and the production of intermediates and active pharmaceutical ingredients, or APIs, for use by pharmaceutical companies in preclinical and clinical trials of small-molecule products and in commercial products, as well as the production of biologics. The Company offers testing and development services to ensure that a medical device is manufactured, packaged and sterilized in accordance with GMP guidelines. Its in vivo and in vitro toxicology testing includes biocompatibility or safe