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REXAM (REXMY) ROC (Joel Greenblatt) % : 27.05% (As of Dec. 2015)


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What is REXAM 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. REXAM's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2015 was 27.05%.

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

REXMY's ROC (Joel Greenblatt) % is not ranked *
in the Packaging & Containers industry.
Industry Median: 10.235
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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


REXAM ROC (Joel Greenblatt) % Historical Data

The historical data trend for REXAM'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.

REXAM ROC (Joel Greenblatt) % Chart

REXAM Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 27.38 26.13 24.68 24.09 21.60

REXAM Semi-Annual Data
Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15
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 25.09 23.86 29.17 16.04 27.05

Competitive Comparison of REXAM's ROC (Joel Greenblatt) %

For the Packaging & Containers subindustry, REXAM'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.


REXAM's ROC (Joel Greenblatt) % Distribution in the Packaging & Containers Industry

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

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



REXAM 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)
=(866.044 + 813.084 + 3.115) - (1331.776 + 0 + 127.726)
=222.741

Working Capital(Q: Dec. 2015 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(562.874 + 805.389 + 188.623) - (1082.335 + 0 + 371.258)
=103.293

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of REXAM for the quarter that ended in Dec. 2015 can be restated as:

ROC (Joel Greenblatt) %(Q: Dec. 2015 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2015  Q: Dec. 2015
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=613.772/( ( (2062.305 + max(222.741, 0)) + (2149.701 + max(103.293, 0)) )/ 2 )
=613.772/( ( 2285.046 + 2252.994 )/ 2 )
=613.772/2269.02
=27.05 %

Note: The EBIT data used here is two times the semi-annual (Dec. 2015) 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.


REXAM  (OTCPK:REXMY) 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.


REXAM ROC (Joel Greenblatt) % Related Terms

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REXAM (REXMY) Business Description

Traded in Other Exchanges
N/A
Address
REXAM PLC was incorporated on July 13, 1923. It is a consumer packaging group and a beverage can maker. The Company is a manufacturer of beverage cans, the majority of which are made of aluminium. It makes all sorts of cans, in different shapes and sizes with different finishes, decorations and ends. It is based in the UK, and has factories across five continents. It is organised into four operating segments for Beverage Cans based on the geographical locations of Europe, AMEA (Africa, Middle East & Asia), North America and South America. For external reporting, the four operating segments for Beverage Cans are combined into two reportable segments, Americas and Europe & Rest of World. It makes a broad range of can sizes for products such as carbonated soft drinks, beer, energy drinks and other drinks categories. Beverage Cans comprise aluminium and steel cans for a variety of beverages including carbonated soft drinks, beer and energy drinks. The Company's customers include many of the world's favourite brands.

REXAM (REXMY) Headlines

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