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Ebos Group (ASX:EBO) ROC (Joel Greenblatt) % : 46.67% (As of Dec. 2023)


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What is Ebos 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. Ebos Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 46.67%.

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

ASX:EBO' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 39.85   Med: 50.88   Max: 59.67
Current: 46.89

During the past 13 years, Ebos Group's highest ROC (Joel Greenblatt) % was 59.67%. The lowest was 39.85%. And the median was 50.88%.

ASX:EBO's ROC (Joel Greenblatt) % is ranked better than
87.63% of 97 companies
in the Medical Distribution industry
Industry Median: 21.95 vs ASX:EBO: 46.89

Ebos Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -4.30% per year.


Ebos Group ROC (Joel Greenblatt) % Historical Data

The historical data trend for Ebos 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.

* Premium members only.

Ebos Group ROC (Joel Greenblatt) % Chart

Ebos Group Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 51.90 45.93 43.04 40.48 50.82

Ebos Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 44.88 39.53 49.38 50.95 46.67

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

For the Medical Distribution subindustry, Ebos 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.


Ebos Group's ROC (Joel Greenblatt) % Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Ebos Group's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Ebos 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)
=(1407.284 + 1227.804 + 62.898) - (2302.308 + 6.337 + 243.769)
=145.572

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1528.701 + 1335.69 + 59.667) - (2342.863 + 14.228 + 70.827)
=496.14

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Ebos 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 )
=466.644/( ( (657.232 + max(145.572, 0)) + (700.702 + max(496.14, 0)) )/ 2 )
=466.644/( ( 802.804 + 1196.842 )/ 2 )
=466.644/999.823
=46.67 %

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


Ebos Group  (ASX:EBO) 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.


Ebos Group ROC (Joel Greenblatt) % Related Terms

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Ebos Group (ASX:EBO) Business Description

Traded in Other Exchanges
Address
108 Wrights Road, P.O. Box 411, Christchurch, STL, NZL, 8024
Ebos is the largest pharmaceutical wholesaler and distributor across Australia and New Zealand. It services community pharmacies and hospitals, which contribute around 60% and 30% of revenue respectively. Drug pricing and wholesale margins for PBS medicine are governed by the Australian government's Pharmaceutical Benefits Scheme, or PBS. Wholesale gross margins are capped at 7% for community pharmacy and 10% for hospitals, and ongoing price reform typically results in low single digit revenue growth. Aside from pharma distribution, Ebos operates an animal health product wholesale, manufacturing and retail business, as well as undertaking third party logistics services. These segments are smaller contributors to group revenue but due to the unregulated nature are higher-margin operations.

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