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R.R.Donnelley & Sons Co (R.R.Donnelley & Sons Co) ROC (Joel Greenblatt) % : 17.60% (As of Dec. 2021)


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What is R.R.Donnelley & Sons Co 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. R.R.Donnelley & Sons Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2021 was 17.60%.

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

RRD's ROC (Joel Greenblatt) % is not ranked *
in the Business Services industry.
Industry Median: 20.65
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

R.R.Donnelley & Sons Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


R.R.Donnelley & Sons Co ROC (Joel Greenblatt) % Historical Data

The historical data trend for R.R.Donnelley & Sons 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.

R.R.Donnelley & Sons Co ROC (Joel Greenblatt) % Chart

R.R.Donnelley & Sons Co Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.86 17.90 19.81 11.45 18.96

R.R.Donnelley & Sons Co Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21
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 30.62 12.27 6.74 30.28 17.60

Competitive Comparison of R.R.Donnelley & Sons Co's ROC (Joel Greenblatt) %

For the Specialty Business Services subindustry, R.R.Donnelley & Sons 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.


R.R.Donnelley & Sons Co's ROC (Joel Greenblatt) % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, R.R.Donnelley & Sons Co's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where R.R.Donnelley & Sons Co's ROC (Joel Greenblatt) % falls into.



R.R.Donnelley & Sons 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. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1045.5 + 379.9 + 164.6) - (1164.7 + 0 + -2.2737367544323E-13)
=425.3

Working Capital(Q: Dec. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1063.4 + 352.7 + 110.5) - (1078.2 + 17.1 + 152.9)
=278.4

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of R.R.Donnelley & Sons Co for the quarter that ended in Dec. 2021 can be restated as:

ROC (Joel Greenblatt) %(Q: Dec. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2021  Q: Dec. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=170/( ( (604.7 + max(425.3, 0)) + (622.9 + max(278.4, 0)) )/ 2 )
=170/( ( 1030 + 901.3 )/ 2 )
=170/965.65
=17.60 %

Note: The EBIT data used here is four times the quarterly (Dec. 2021) 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.


R.R.Donnelley & Sons Co  (NYSE:RRD) 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.


R.R.Donnelley & Sons Co ROC (Joel Greenblatt) % Related Terms

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


R.R.Donnelley & Sons Co (R.R.Donnelley & Sons Co) Business Description

Traded in Other Exchanges
N/A
Address
35 West Wacker Drive, Chicago, IL, USA, 60601
R.R.Donnelley & Sons Co provides integrated communication strategies by helping organizations communicate more effectively by working to create, manage and produce the content on behalf of its customers. It assists its customers in developing and executing multichannel communication strategies. The company carries its operations in the United States, Europe, Asia and other countries. The maximum earnings come from the U.S.A.
Executives
Chatham Asset Management, Llc 10 percent owner 26 MAIN STREET, SUITE 204, CHATHAM NJ 07928
David Miles Houck officer: EVP, Chief Information Officer 35 WEST WACKER DR. CHICAGO IL 60606
Dupont Albert officer: EVP, Chief Commercial Officer 35 WEST WACKER DR. CHICAGO IL 60606
Ray James R Jr director COMMERCIAL VEHICLE GROUP, INC., 7800 WALTON PARKWAY, NEW ALBANY OH 43054
Kenneth E O'brien officer: EVP and CIO C/O RR DONNELLEY & SONS COMPANY 35 W. WACKER DRIVE CHICAGO IL 60601
Sheila M Rutt officer: EVP and CHRO 5995 MAYFAIR ROAD, NORTH CANTON OH 44720
Terry D Peterson officer: See Remarks 3680 VICTORIA STREET N., SHOREVIEW MN 55128
Douglas D Ryan officer: President-Marketing Solutions C/O RR DONNELLEY & SONS COMPANY 35 W. WACKER DRIVE CHICAGO IL 60601
J. Glynn Perry officer: EVP, Operations C/O RR DONNELLEY & SONS COMPANY 35 W. WACKER DRIVE CHICAGO IL 60601
Timothy R Mclevish director 2440 BEAR HOLLOW DRIVE, PARK CITY UT 84098
Irene M Esteves director C/O TIME WARNER CABLE INC., 60 COLUMBUS CIRCLE, 17TH FLOOR, NEW YORK NY 10023
Michael J Sharp officer: SVP - Chief Accounting Officer 1100 N WOOD DALE ROAD, WOOD DALE IL 60191
Daniel L. Knotts director, officer: CEO and President C/O RR DONNELLEY 111 SOUTH WACKER DRIVE CHICAGO IL 60606
John P Pecaric officer: See Remarks C/O RR DONNELLEY & SONS COMPANY 35 W. WACKER DRIVE CHICAGO IL 60601
Jamie Moldafsky director C/O WELLS FARGO 420 MONTGOMERY ST., 12TH FLOOR SAN FRANCISCO CA 94104

R.R.Donnelley & Sons Co (R.R.Donnelley & Sons Co) Headlines

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