Leap Wireless International, (FRA:LWI) ROC (Joel Greenblatt) % : -32.08% (As of Dec. 2013)

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What is Leap Wireless International, 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. Leap Wireless International,'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2013 was -32.08%.

The historical rank and industry rank for Leap Wireless International,'s ROC (Joel Greenblatt) % or its related term are showing as below:

FRA:LWI's ROC (Joel Greenblatt) % is not ranked ^*
in the Telecommunication Services industry.
Industry Median: 14.195
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

Leap Wireless International,'s 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.

Leap Wireless International, ROC (Joel Greenblatt) % Historical Data

The historical data trend for Leap Wireless International,'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.

Leap Wireless International, ROC (Joel Greenblatt) % Chart

Leap Wireless International, Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROC (Joel Greenblatt) %

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0.63

-25.20

-1.11

7.48

-19.84

Leap Wireless International, Quarterly Data
	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13
ROC (Joel Greenblatt) %	Get a 7-Day Free Trial															9.08	-7.24	-19.95	-25.18	-32.08

Competitive Comparison of Leap Wireless International,'s ROC (Joel Greenblatt) %

For the Telecom Services subindustry, Leap Wireless International,'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.

Leap Wireless International,'s ROC (Joel Greenblatt) % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Leap Wireless International,'s ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Leap Wireless International,'s ROC (Joel Greenblatt) % falls into.

Leap Wireless International, 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. 2013 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(69.9	+	61.937	+	84.167)	-	(133.752	+	0	+	259.963)
=	-177.711

	Working Capital		(Q: Dec. 2013 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	53.316	+	144.448)	-	(266.8	+	0	+	152.62)
=	-221.656

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Leap Wireless International, for the quarter that ended in Dec. 2013 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2013 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2013		Q: Dec. 2013
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-313.996	/	( ( (1033.02 + max(-177.711, 0))	+	(924.452 + max(-221.656, 0)) )	/	2 )
=	-313.996	/	( ( 1033.02	+	924.452 )	/	2 )
=	-313.996	/	978.736
=	-32.08 %

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

Leap Wireless International, (FRA:LWI) 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.

Leap Wireless International, ROC (Joel Greenblatt) % Related Terms

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Leap Wireless International, (FRA:LWI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Leap Wireless International, Inc. (FRA:LWI) » Definitions » ROC (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.leapwireless.com

Leap Wireless International, Inc., was formed as a Delaware corporation in 1998. The Company is a wireless communications carrier that offers digital wireless services in the U.S. under the 'Cricket' brand. Its Cricket service offerings provide customers with unlimited nationwide wireless services for a flat rate without requiring a fixed-term contract or a credit check. Cricket service is offered by Cricket, a wholly-owned subsidiary of Leap. As of December 31, 2012, Cricket service was offered in 48 states and the District of Columbia across an extended area covering approximately 292 million POPs. As of December 31, 2012, it had approximately 5.3 million customers, and it owned wireless licenses covering an aggregate of approximately 136.7 million POPs (adjusted to eliminate duplication from overlapping licenses). The combined network footprint in its operating markets covered approximately96.2 million POPs as of December 31, 2012. The licenses it own provide an average of 23 MHz of coverage in its operating markets. The Company has entered into roaming relationships with other wireless carriers that enable it to offer Cricket customers nationwide voice and data roaming services over an extended service area. It recently entered into an agreement with a national carrier for 4G LTE roaming services. In addition, it has also entered into a wholesale agreement, which it use to offer Cricket services in nationwide retailers outside of its current network footprint, and it recently amended that agreement to enable its customers to receive 4G LTE services. The service plans it currently offers are 'all-inclusive,' with telecommunication taxes and certain fees included within the service plan price. The Company competes with national facilities-based wireless providers and their prepaid affiliates or brands, local and regional carriers, non-facilities-based mobile virtual network operators, or MVNOs, voice-over-internet-protocol service providers and traditional landline service providers, including cable companies. Leap is a U.S. registered trademark and the Leap logo is a trademark of Leap. The Company's operations are subject to various other laws and regulations, including those regulations promulgated by the Federal Trade Commission, the Federal Aviation Administration, the Environmental Protection Agency, the Occupational Safety and Health Administration, other federal agencies and state and local regulatory agencies and legislative bodies.

Leap Wireless International, (FRA:LWI) Headlines

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