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Children's Place (Children's Place) ROC (Joel Greenblatt) %

: 33.73% (As of Oct. 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. Children's Place's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2023 was 33.73%.

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

PLCE' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -31.11   Med: 21.06   Max: 51.47
Current: -15.54

During the past 13 years, Children's Place's highest ROC (Joel Greenblatt) % was 51.47%. The lowest was -31.11%. And the median was 21.06%.

PLCE's ROC (Joel Greenblatt) % is ranked worse than
83.26% of 1105 companies
in the Retail - Cyclical industry
Industry Median: 9.94 vs PLCE: -15.54

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


Children's Place ROC (Joel Greenblatt) % Historical Data

The historical data trend for Children's Place'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 33.93 [6] => 18.33 [7] => -31.11 [8] => 48.97 [9] => -0.26 )
Children's Place Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
ROC (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.93 18.33 -31.11 48.97 -0.26

Children's Place Quarterly Data
Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23
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 37.59 -43.64 -21.77 -28.48 33.73

Competitive Comparison

For the Apparel Retail subindustry, Children's Place'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.


Children's Place ROC (Joel Greenblatt) % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Children's Place's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Children's Place 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: Jul. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(33.073 + 536.98 + 65.108) - (387.339 + 0 + -1.1368683772162E-13)
=247.822

Working Capital(Q: Oct. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(51.712 + 462.411 + 69.71) - (280.847 + 0 + 0)
=302.986

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Children's Place for the quarter that ended in Oct. 2023 can be restated as:

ROC (Joel Greenblatt) %(Q: Oct. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jul. 2023  Q: Oct. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=179.936/( ( (253.569 + max(247.822, 0)) + (262.502 + max(302.986, 0)) )/ 2 )
=179.936/( ( 501.391 + 565.488 )/ 2 )
=179.936/533.4395
=33.73 %

Note: The EBIT data used here is four times the quarterly (Oct. 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.


Children's Place  (NAS:PLCE) 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.


Children's Place ROC (Joel Greenblatt) % Related Terms

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Children's Place (Children's Place) Business Description

Traded in Other Exchanges
Address
500 Plaza Drive, Secaucus, NJ, USA, 07094
Children's Place Inc is pure-play children's specialty apparel retailer in North America. It design, contract to manufacture, sell at retail and wholesale, and license to sell, trend right, high quality merchandise predominantly at value prices, under proprietary The Children's Place, Place, Baby Place, Gymboree, Sugar & Jade, and PJ Place brand names.
Executives
Maegan Markee officer: BRAND PRESIDENT 500 PLAZA DRIVE, SECAUCUS NJ 07094
Alicia Enciso director 1721 VALLEY AVENUE, MCLEAN VA 22101
Jane T Elfers officer: President and CEO C/O THE CHILDRENS PLACE RETAIL STORES, 915 SECAUCUS ROAD, SECAUCUS NJ 07094
Wesley S Mcdonald director
Michael A Shaffer director C/O PHILLIPS-VAN HEUSEN CORPORATION, 200 MADISON AVENUE, NEW YORK NY 10016
Sheamus Toal officer: SVP, CHIEF FINANCIAL OFFICER 450 W. 33RD STREET, 5TH FLOOR, NEW YORK NY 10001
John E. Bachman director 77 EXETER STREET, 1809, BOSTON MA 02116
Joseph A Alutto director 810 CURLEYS COURT, COLUMBUS OH 43235
Jared Shure officer: SVP, GEN COUNSEL & SECRETARY 500 PLAZA DRIVE, THE CHILDREN'S PLACE, SECAUCUS NJ 07094
Elizabeth J Boland director C/O BRIGHT HORIZONS FAMILY SOLUTIONS, 2 WELLS AVENUE, NEWTON MA 02459
Deborah Derby officer: CHIEF ADMINISTRATIVE OFFICER TOYS R US INC, 225 SUMMIT AVE, MONTVALE NJ 07645
Katherine Kountze director 500 PLAZA DRIVE, C/O THE CHILDREN'S PLACE, SECAUCUS NJ 07094
Michael D Rinaldo officer: CHIEF ACCOUNTING OFFICER C/O TIFFANY & CO., 727 FIFTH AVENUE, NEW YORK NY 10022
Leah Swan officer: CHIEF ADMINISTRATIVE OFFICER 500 PLAZA DRIVE, C/O THE CHILDREN'S PLACE, INC., SECAUCUS NJ 07094
Robert F Helm officer: SVP, FINANCE & INV MGMT (CAO) 500 PLAZA DRIVE, THE CHILDREN'S PLACE, SECAUCUS NJ 07094

Children's Place (Children's Place) Headlines