Brickworks (ASX:BKW) ROC (Joel Greenblatt) %

: 80.40% (As of Jan. 2023)

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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. Brickworks's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2023 was 80.40%.

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

ASX:BKW' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 16.9 Med: 34.5 Max: 109.96
Current: 70.81

During the past 13 years, Brickworks's highest ROC (Joel Greenblatt) % was 109.96%. The lowest was 16.90%. And the median was 34.50%.

ASX:BKW's ROC (Joel Greenblatt) % is ranked better than
95.11% of 368 companies
in the Building Materials industry
Industry Median: 10.22 vs ASX:BKW: 70.81

Brickworks's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 14.50% per year.

Brickworks ROC (Joel Greenblatt) % Historical Data

The historical data trend for Brickworks'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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Brickworks Annual Data

Trend

Jul13

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

ROC (Joel Greenblatt) %

37.11

44.49

46.94

31.88

109.96

Brickworks Semi-Annual Data
	Jul13	Jan14	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23
ROC (Joel Greenblatt) %																21.59	43.36	148.89	62.37	80.40

Competitive Comparison

For the Building Materials subindustry, Brickworks'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.

Annual Data Quarterly Data

Brickworks ROC (Joel Greenblatt) % Distribution

For the Building Materials industry and Basic Materials sector, Brickworks's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Brickworks's ROC (Joel Greenblatt) % falls in comparison to its industry or sector. The grey bar indicates the ROC (Joel Greenblatt) %'s extreme value range as defined by GuruFocus.

Brickworks 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: Jul. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(149.973	+	327.202	+	40.28)	-	(149.249	+	6.315	+	115.315)
=	246.576

	Working Capital		(Q: Jan. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(128.751	+	343.543	+	45.177)	-	(134.115	+	1.05	+	120.144)
=	262.162

When net working capital is negative, 0 is used.

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

	ROC (Joel Greenblatt) %		(Q: Jan. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jul. 2022		Q: Jan. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	986.252	/	( ( (968.529 + max(246.576, 0))	+	(975.972 + max(262.162, 0)) )	/	2 )
=	986.252	/	( ( 1215.105	+	1238.134 )	/	2 )
=	986.252	/	1226.6195
=	80.40 %

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

Brickworks (ASX:BKW) 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.

Brickworks ROC (Joel Greenblatt) % Related Terms

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Brickworks (ASX:BKW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Brickworks Ltd (ASX:BKW) » Definitions » ROC (Joel Greenblatt) %

Traded in Other Exchanges

N/A

Address

738 - 780 Wallgrove Road, Horsley Park, Sydney, NSW, AUS, 2175

Website

https://www.brickworks.com.au

Brickworks is Australia's largest manufacturer and distributor of bricks. The company was founded in 1934 by a group of leading Sydney brick manufacturers to survive the Great Depression. Over the years the company has diversified into roof tiles, pavers and precast concrete panels and has established a leading presence across all major states. Brickworks also holds a 26% interest in Washington H. Soul Pattinson (ASX:SOL). Shareholder value has been created via the sale of surplus industrial land or transferring it to an industrial real estate trust joint venture with the Goodman Group. More recently, Brickworks has entered the U.S. brick market via targeted acquisitions aimed at consolidating a fragmented industry.

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