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Digital Realty Trust (BSP:D1LR34) ROC (Joel Greenblatt) %

: 45.73% (As of Dec. 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. Digital Realty Trust's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 45.73%.

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

BSP:D1LR34' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 51.58   Med: 105.85   Max: 153.38
Current: 110.07

During the past 13 years, Digital Realty Trust's highest ROC (Joel Greenblatt) % was 153.38%. The lowest was 51.58%. And the median was 105.85%.

BSP:D1LR34's ROC (Joel Greenblatt) % is ranked worse than
50.44% of 573 companies
in the REITs industry
Industry Median: 114.29 vs BSP:D1LR34: 110.07

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


Digital Realty Trust ROC (Joel Greenblatt) % Historical Data

The historical data trend for Digital Realty Trust'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.

Digital Realty Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 153.38 77.71 158.52 49.61 102.32

Digital Realty Trust Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC (Joel Greenblatt) % 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 Premium Member Only Premium Member Only Premium Member Only 5.78 57.51 71.85 274.88 45.73

Competitive Comparison

For the REIT - Specialty subindustry, Digital Realty Trust'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.


Digital Realty Trust ROC (Joel Greenblatt) % Distribution

For the REITs industry and Real Estate sector, Digital Realty Trust's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Digital Realty Trust's ROC (Joel Greenblatt) % falls into.



Digital Realty Trust 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. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4713.505 + 0 + 0) - (10603.903 + 1903.973 + -0.00099999999656575)
=-7794.37

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4663.385 + 0 + 2344.57) - (12528.651 + 1969.068 + 191.097)
=-7680.861

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Digital Realty Trust 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: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=3023.236/( ( (6293.929 + max(-7794.37, 0)) + (6929.572 + max(-7680.861, 0)) )/ 2 )
=3023.236/( ( 6293.929 + 6929.572 )/ 2 )
=3023.236/6611.7505
=45.73 %

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


Digital Realty Trust  (BSP:D1LR34) 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.


Digital Realty Trust ROC (Joel Greenblatt) % Related Terms

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Digital Realty Trust (BSP:D1LR34) Business Description

Address
5707 Southwest Parkway, Building 1, Suite 275, Austin, TX, USA, 78735
Digital Realty owns and operates over 300 data centers worldwide. It has nearly 40 million rentable square feet across five continents. Digital's offerings range from retail co-location, where an enterprise may rent a single cabinet and rely on Digital to provide all the accommodations, to "cold shells," where hyperscale cloud service providers can simply rent much, or all, of a barren, power-connected building. In recent years, Digital Realty has de-emphasized cold shells and now primarily provides higher-level service to tenants, which outsource their related IT needs to Digital. Digital Realty has also moved more into the co-location business, increasingly serving enterprises and facilitating network and cloud connections. Digital Realty operates as a real estate investment trust.

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