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Sycamore Networks (Sycamore Networks) ROC (Joel Greenblatt) % : -227.46% (As of Jan. 2013)


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What is Sycamore Networks 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. Sycamore Networks's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2013 was -227.46%.

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

SCMR's ROC (Joel Greenblatt) % is not ranked *
in the Hardware industry.
Industry Median: 10.02
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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


Sycamore Networks ROC (Joel Greenblatt) % Historical Data

The historical data trend for Sycamore Networks'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.

Sycamore Networks ROC (Joel Greenblatt) % Chart

Sycamore Networks Annual Data
Trend Jul03 Jul04 Jul05 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -154.18 -305.02 -129.72 -168.73 -169.91

Sycamore Networks Quarterly Data
Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13
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 -131.03 -231.16 -184.54 -502.94 -227.46

Competitive Comparison of Sycamore Networks's ROC (Joel Greenblatt) %

For the Communication Equipment subindustry, Sycamore Networks'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.


Sycamore Networks's ROC (Joel Greenblatt) % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Sycamore Networks's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Sycamore Networks 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: Oct. 2012 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5.72 + 8.836 + 0.828) - (7.964 + 5.296 + 0.885)
=1.239

Working Capital(Q: Jan. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(8.44 + 9.162 + 1.328) - (5.807 + 6.187 + 1.021)
=5.915

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Sycamore Networks for the quarter that ended in Jan. 2013 can be restated as:

ROC (Joel Greenblatt) %(Q: Jan. 2013 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2012  Q: Jan. 2013
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-16.168/( ( (3.705 + max(1.239, 0)) + (3.357 + max(5.915, 0)) )/ 2 )
=-16.168/( ( 4.944 + 9.272 )/ 2 )
=-16.168/7.108
=-227.46 %

Note: The EBIT data used here is four times the quarterly (Jan. 2013) 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.


Sycamore Networks  (OTCPK:SCMR) 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.


Sycamore Networks ROC (Joel Greenblatt) % Related Terms

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Sycamore Networks (Sycamore Networks) Business Description

Traded in Other Exchanges
N/A
Address
Sycamore Networks Inc was incorporated under the laws of the State of Delaware on February 17, 1998. The Company develops and markets Intelligent Bandwidth Management solutions for fixed line and mobile network operators worldwide and provides services associated with such products.
Executives
Robert E Donahue director
John W Gerdelman director C/O SYCAMORE NETWORKS INC, 220 MILL RD, CHELMSFORD MA 01824
Alan Cormier officer: General Counsel and Secretary 220 MILL ROAD, CHELMSFORD MA 01824