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Weyerhaeuser Co (Weyerhaeuser Co) ROC (Joel Greenblatt) %

: 37.88% (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. Weyerhaeuser Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 37.88%.

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

WY' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 5.77   Med: 44.28   Max: 134.38
Current: 39.7

During the past 13 years, Weyerhaeuser Co's highest ROC (Joel Greenblatt) % was 134.38%. The lowest was 5.77%. And the median was 44.28%.

WY's ROC (Joel Greenblatt) % is ranked worse than
57.77% of 573 companies
in the REITs industry
Industry Median: 115.85 vs WY: 39.70

Weyerhaeuser Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 26.40% per year.


Weyerhaeuser Co ROC (Joel Greenblatt) % Historical Data

The historical data trend for Weyerhaeuser 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.

Weyerhaeuser 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 5.77 50.68 134.38 89.05 39.88

Weyerhaeuser 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 4.51 31.02 41.59 48.22 37.88

Competitive Comparison

For the REIT - Specialty subindustry, Weyerhaeuser 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.


Weyerhaeuser Co ROC (Joel Greenblatt) % Distribution

For the REITs industry and Real Estate sector, Weyerhaeuser Co's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Weyerhaeuser 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)
=(443 + 528 + 186) - (496 + 135 + 173)
=353

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(354 + 566 + 219) - (596 + 0 + 173)
=370

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Weyerhaeuser 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 )
=1152/( ( (2620 + max(353, 0)) + (2739 + max(370, 0)) )/ 2 )
=1152/( ( 2973 + 3109 )/ 2 )
=1152/3041
=37.88 %

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.


Weyerhaeuser Co  (NYSE:WY) 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.


Weyerhaeuser Co ROC (Joel Greenblatt) % Related Terms

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


Weyerhaeuser Co (Weyerhaeuser Co) Business Description

Industry
Traded in Other Exchanges
Address
220 Occidental Avenue South, Seattle, WA, USA, 98104-7800
Weyerhaeuser ranks among the world's largest forest product companies. Following the 2016 sale of its pulp business to International Paper, Weyerhaeuser operates three business segments: timberlands, wood products, and real estate. Weyerhaeuser is structured as a real estate investment trust and is not required to pay federal income taxes on earnings generated by timber harvest activities. Earnings from its wood products segment are subject to federal income tax. Weyerhaeuser acquired fellow timber REIT Plum Creek in 2016.
Executives
David M Wold officer: VP & Chief Accounting Officer C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Keith O'rear officer: Senior Vice President C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Denise M Merle officer: Senior Vice President C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Devin W Stockfish director, officer: President and CEO C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
James Calvin O'rourke director C/O THE MOSAIC COMPANY, 101 EAST KENNEDY BLVD., SUITE 2500, TAMPA FL 33602
Albert Monaco director #3000, 425 - 1ST STREET SW, CALGARY A0 T2P 3L8
Travis A Keatley officer: Senior Vice President 220 OCCIDENTAL AVE SOUTH, SEATTLE WA 98104
Adrian M Blocker officer: Senior Vice President C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Nancy S. Loewe officer: Senior Vice President and CFO 351 PHELPS DRIVE, IRVING TX 75038
Russell S Hagen officer: Senior Vice President and CFO C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Deidra C Merriwether director 100 GRAINGER PARKWAY, LAKE FOREST IL 60045
Nicole Weyerhaeuser Piasecki director 2000 WELLS FARGO PLACE, 30 EAST 7TH STREET, SAINT PAUL MN 55101-4930
James A Kilberg officer: Senior Vice President C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
Marc F Racicot director 1411 E. MISSION AVENUE, SPOKANE WA 99202
Lawrence A Selzer director C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104

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