Able Engineering Holdings (HKSE:01627) ROC (Joel Greenblatt) %

: 11.86% (As of Sep. 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. Able Engineering Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 11.86%.

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

HKSE:01627' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 6.22 Med: 1089.9 Max: 5854.86
Current: 17.22

During the past 10 years, Able Engineering Holdings's highest ROC (Joel Greenblatt) % was 5854.86%. The lowest was 6.22%. And the median was 1089.90%.

HKSE:01627's ROC (Joel Greenblatt) % is ranked worse than
51.12% of 1659 companies
in the Construction industry
Industry Median: 17.87 vs HKSE:01627: 17.22

Able Engineering Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -58.30% per year.

Able Engineering Holdings ROC (Joel Greenblatt) % Historical Data

The historical data trend for Able Engineering 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.

* Premium members only.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 49.28 [6] => 6.22 [7] => 13.37 [8] => 14.00 [9] => 17.70 )

Able Engineering Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC (Joel Greenblatt) %

49.28

6.22

13.37

14.00

17.70

Able Engineering Holdings Semi-Annual Data
	Mar14	Mar15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROC (Joel Greenblatt) %														4.57	22.81	10.76	22.63	11.86

Competitive Comparison

For the Engineering & Construction subindustry, Able Engineering 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.

Able Engineering Holdings ROC (Joel Greenblatt) % Distribution

For the Construction industry and Industrials sector, Able Engineering Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Able Engineering Holdings's ROC (Joel Greenblatt) % falls into.

Able Engineering Holdings 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: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(498.867	+	3.383	+	18.419)	-	(2503.98	+	0	+	0)
=	-1983.311

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(501.714	+	2.222	+	19.661)	-	(2816.936	+	0	+	0)
=	-2293.339

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Able Engineering Holdings for the quarter that ended in Sep. 2023 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	185.81	/	( ( (1558.77 + max(-1983.311, 0))	+	(1575.121 + max(-2293.339, 0)) )	/	2 )
=	185.81	/	( ( 1558.77	+	1575.121 )	/	2 )
=	185.81	/	1566.9455
=	11.86 %

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

Able Engineering Holdings (HKSE:01627) 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.

Able Engineering Holdings ROC (Joel Greenblatt) % Related Terms

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Able Engineering Holdings (HKSE:01627) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Able Engineering Holdings Ltd (HKSE:01627) » Definitions » ROC (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 155 Waterloo Road, Kowloon Tong, Kowloon, Hong Kong, HKG

Website

https://www.ableeng.com.hk

Able Engineering Holdings Ltd is engaged in building construction and repair, maintenance, alteration, and addition (RMAA) . The company is engaged in the construction and renovation of residential buildings, the design and construction of government facilities, skeleton fabrication, school reconstruction, public rental housing construction, and public housing construction. The company's projects include Project A9 in Kowloon City, project A10 in Tai Lam, project A11 in Ho Man Tin, project A12 in Repulse Bay, and others. Geographically, it derives revenue from Hong Kong.

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