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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. Forma Therapeutics Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2022 was -596.69%.
The historical rank and industry rank for Forma Therapeutics Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
During the past 4 years, Forma Therapeutics Holdings's highest ROC (Joel Greenblatt) % was 133.85%. The lowest was -3749.59%. And the median was -748.57%.
Forma Therapeutics Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The historical data trend for Forma Therapeutics Holdings'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.
Forma Therapeutics Holdings Annual Data | |||||||||
Trend | Dec18 | Dec19 | Dec20 | Dec21 | |||||
ROC (Joel Greenblatt) % | 133.85 | -569.72 | -3,749.59 | -927.41 |
Forma Therapeutics Holdings Quarterly Data | |||||||||||||||
Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | |
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial | -2,604.67 | -858.04 | -564.12 | -499.18 | -596.69 |
For the Biotechnology subindustry, Forma Therapeutics Holdings'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.
For the Biotechnology industry and Healthcare sector, Forma Therapeutics Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Forma Therapeutics Holdings's ROC (Joel Greenblatt) % falls into.
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: Mar. 2022 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (0 | + | 0 | + | 11.418) | - | (15.527 | + | 0 | + | 5.698) |
= | -9.8070000000001 |
Working Capital | (Q: Jun. 2022 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (0 | + | 0 | + | 15.171) | - | (19.52 | + | 0 | + | 8.609) |
= | -12.958 |
When net working capital is negative, 0 is used.
So ROC (Joel Greenblatt) % of Forma Therapeutics Holdings for the quarter that ended in Jun. 2022 can be restated as:
ROC (Joel Greenblatt) % | (Q: Jun. 2022 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Mar. 2022 | Q: Jun. 2022 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | -211.992 | / | ( ( (35.17 + max(-9.8070000000001, 0)) | + | (35.886 + max(-12.958, 0)) ) | / | 2 ) |
= | -211.992 | / | ( ( 35.17 | + | 35.886 ) | / | 2 ) |
= | -211.992 | / | 35.528 | ||||
= | -596.69 % |
Note: The EBIT data used here is four times the quarterly (Jun. 2022) 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.
Forma Therapeutics Holdings (NAS:FMTX) 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.
Thank you for viewing the detailed overview of Forma Therapeutics Holdings's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Agustin Melian | officer: EVP, Research & Development | C/O ALLOVIR, INC., 139 MAIN STREET, SUITE 500, CAMBRIDGE MA 02142 |
Brian Andrew Lesser | officer: SVP, Commercial Officer | C/O FORMA THERAPEUTICS HOLDINGS, INC. 300 NORTH BEACON STREET SUITE 501 WATERTOWN MA 02472 |
Mary E. Wadlinger | officer: See Remarks | C/O FORMA THERAPEUTICS HOLDINGS, INC. 500 ARSENAL STREET, SUITE 100 WATERTOWN MA 02472 |
Jeannette Potts | officer: See Remarks | C/O FORMA THERAPEUTICS HOLDINGS, INC., 500 ARSENAL STREET, SUITE 100, WATERTOWN MA 02472 |
Frank D. Lee | director, officer: President and CEO | C/O FORMA THERAPEUTICS HOLDINGS, INC., 500 ARSENAL STREET, SUITE 100, WATERTOWN MA 02472 |
David N Cook | officer: SVP, Chief Scientific Officer | |
Patrick F. Kelly | officer: SVP, Chief Medical Officer | C/O FORMA THERAPEUTICS HOLDINGS, INC. 500 ARSENAL STREET, SUITE 100 WATERTOWN MA 02472 |
Todd Shegog | officer: SVP, Chief Financial Officer | 200 SIDNEY STREET, SUITE 320, C/O SYNLOGIC, INC., CAMBRIDGE MA 02139 |
Arturo Md Molina | director | 10990 WILSHIRE BLVD, SUITE 1200, LOS ANGELES CA 90024 |
John E Bishop | officer: Chief Technology Officer | 675 WEST KENDALL STREET, CAMBRIDGE MA 02142 |
Vickers Selwyn M Md | director | 600 NORTH 18TH STREET, BIRMINGHAM AL 35203 |
Thomas G Wiggans | director | |
Frederick Wayne A.i. | director | 500 W MAIN ST., LOUISVILLE KY 40202 |
Peter Kolchinsky | director, 10 percent owner | 200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116 |
Ra Capital Healthcare Fund Lp | 10 percent owner | 200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116 |
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