Telestone Technologies (Telestone Technologies) ROC (Joel Greenblatt) % : -33.78% (As of Dec. 2012)

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What is Telestone Technologies 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. Telestone Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2012 was -33.78%.

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

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

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

Telestone Technologies ROC (Joel Greenblatt) % Historical Data

The historical data trend for Telestone Technologies'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.

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Telestone Technologies ROC (Joel Greenblatt) % Chart

Telestone Technologies Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

ROC (Joel Greenblatt) %

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23.12

32.06

43.86

18.86

-18.96

Telestone Technologies Quarterly Data
	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12
ROC (Joel Greenblatt) %	Get a 7-Day Free Trial															18.36	2.86	-2.07	-38.95	-33.78

Competitive Comparison of Telestone Technologies's ROC (Joel Greenblatt) %

For the Communication Equipment subindustry, Telestone Technologies'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.

Telestone Technologies's ROC (Joel Greenblatt) % Distribution in the Hardware Industry

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

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

Telestone Technologies 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. 2012 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(243.913	+	10.151	+	6.474)	-	(145.093	+	0	+	2.515)
=	112.93

	Working Capital		(Q: Dec. 2012 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(221.648	+	6.301	+	5.702)	-	(143.061	+	0.669	+	0)
=	89.921

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Telestone Technologies for the quarter that ended in Dec. 2012 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2012 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2012		Q: Dec. 2012
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-38.396	/	( ( (11.252 + max(112.93, 0))	+	(13.194 + max(89.921, 0)) )	/	2 )
=	-38.396	/	( ( 124.182	+	103.115 )	/	2 )
=	-38.396	/	113.6485
=	-33.78 %

Note: The EBIT data used here is four times the quarterly (Dec. 2012) EBIT data.

Telestone Technologies (OTCPK:TSTC) 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.

Telestone Technologies ROC (Joel Greenblatt) % Related Terms

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Telestone Technologies (Telestone Technologies) Business Description

Industry

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Address

Website

http://www.telestone.com

Telestone Technologies Corp was organized under the laws of the State of Colorado in February 1987 under the name Shield Enterprises, Inc. In August 2004, TSTC reincorporated in the State of Delaware under the name Telestone Technologies Corporation. It provides access network solutions in China. The company's access network solutions include the research and development and application of access-network technology. In addition to its homegrown access-network equipment, which includes repeaters, antennas, and radio-frequency peripherals, the company offers project design, project management, installation, maintenance, and other after sales services to its customers. The company offers WFDS, a next generation wireless distribution system. WFDS is an all-optical network that combines the technologies of both wireless and optical telecommunications. As of December 31, 2011, it completed 499 WFDS installations. The company designs and sells electronic equipment used to provide access-network solutions to its customers. Many of these types of equipment, including WFDS products, RFPA products, passive components and base station antennas for 2G, 3G, Broadband access and CATV networks, are specialized active microwave components designed to meet the needs of its customers.The company provides systems integration services to its customers. The primary systems integration services provided to the company's customers are project design and engineering, specifically, the development and design of indoor and outdoor wireless signal complementary coverage solutions and their applied products. The company also markets its products to 29 countries, including the United States, Vietnam, Mexico, Brazil, Russia, India, the Philippines, Thailand, Ireland, Ecuador, Mongolia, South Africa, Turkey, Indonesia, Colombia, Costa Rica, Argentina, Ukraine, Kazakhstan, Singapore, South Korea, Hong Kong, Saudi Arabia, New Zealand, Bangladesh, the United Arab Emirates, Canada, and Iceland.

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