DGL Group (ASX:DGL) ROC (Joel Greenblatt) % : 8.02% (As of Dec. 2023)

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What is DGL Group 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. DGL Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 8.02%.

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

ASX:DGL' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 9.66 Med: 18.06 Max: 29.32
Current: 9.66

During the past 3 years, DGL Group's highest ROC (Joel Greenblatt) % was 29.32%. The lowest was 9.66%. And the median was 18.06%.

ASX:DGL's ROC (Joel Greenblatt) % is ranked worse than
59.24% of 525 companies
in the Conglomerates industry
Industry Median: 14.61 vs ASX:DGL: 9.66

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

DGL Group ROC (Joel Greenblatt) % Historical Data

The historical data trend for DGL Group'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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DGL Group ROC (Joel Greenblatt) % Chart

DGL Group Annual Data

Trend

Jun21

Jun22

Jun23

ROC (Joel Greenblatt) %

29.32

18.06

11.33

DGL Group Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC (Joel Greenblatt) %	Get a 7-Day Free Trial			12.87	22.15	10.76	11.55	8.02

Competitive Comparison of DGL Group's ROC (Joel Greenblatt) %

For the Conglomerates subindustry, DGL Group'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.

DGL Group's ROC (Joel Greenblatt) % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, DGL Group's ROC (Joel Greenblatt) % distribution charts can be found below:

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

DGL Group 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. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(50.943	+	37.249	+	8.601)	-	(33.306	+	3.975	+	9.449)
=	50.063

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(68.322	+	43.839	+	2.8421709430404E-14)	-	(36.037	+	7.292	+	11.803)
=	57.029

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of DGL Group for the quarter that ended in Dec. 2023 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	28.61	/	( ( (288.777 + max(50.063, 0))	+	(317.191 + max(57.029, 0)) )	/	2 )
=	28.61	/	( ( 338.84	+	374.22 )	/	2 )
=	28.61	/	356.53
=	8.02 %

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

DGL Group (ASX:DGL) 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.

DGL Group ROC (Joel Greenblatt) % Related Terms

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DGL Group (ASX:DGL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » DGL Group Ltd (ASX:DGL) » Definitions » ROC (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

N/A

Address

C/- DW Accounting and Advisory Pty Ltd, Level 4, 91-97 William Street, Melbourne, VIC, AUS, 3000

Website

https://www.dglgroup.com

DGL Group Ltd is an investment holding company. The company's segment includes Environmental Solutions; Chemical Manufacturing; Warehousing and Distribution and Corporate Costs. It generates maximum revenue from the Chemical Manufacturing segment. The Chemical Manufacturing segment produces its own range of speciality chemicals and undertaken advanced formulation and contract manufacturing on behalf of third parties.