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Gartner (Gartner) ROC (Joel Greenblatt) %

: 212.06% (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. Gartner's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 212.06%.

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

IT' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 0.08   Med: 138.67   Max: 302.49
Current: 194.01

During the past 13 years, Gartner's highest ROC (Joel Greenblatt) % was 302.49%. The lowest was 0.08%. And the median was 138.67%.

IT's ROC (Joel Greenblatt) % is ranked better than
84.89% of 2760 companies
in the Software industry
Industry Median: 13.055 vs IT: 194.01

Gartner's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 18.80% per year.


Gartner ROC (Joel Greenblatt) % Historical Data

The historical data trend for Gartner'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.

Gartner 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 57.57 43.49 120.54 151.46 192.37

Gartner 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 191.18 238.10 173.80 152.05 212.06

Competitive Comparison

For the Information Technology Services subindustry, Gartner'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.


Gartner ROC (Joel Greenblatt) % Distribution

For the Software industry and Technology sector, Gartner's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Gartner 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)
=(1140.563 + 0 + 447.638) - (908.558 + 2394.556 + 0)
=-1714.913

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1601.228 + 0 + 507.659) - (1029.111 + 2640.515 + 0)
=-1560.739

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Gartner 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 )
=1345.028/( ( (639.002 + max(-1714.913, 0)) + (629.527 + max(-1560.739, 0)) )/ 2 )
=1345.028/( ( 639.002 + 629.527 )/ 2 )
=1345.028/634.2645
=212.06 %

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.


Gartner  (NYSE:IT) 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.


Gartner ROC (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Gartner's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Gartner (Gartner) Business Description

Industry
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Address
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Based in Stamford, Conn., Gartner provides independent research and analysis on information technology and other related technology industries. Its research is delivered to clients' desktops in the form of reports, briefings, and updates. Typical clients are chief information officers and other business executives who help plan companies' IT budgets. Gartner also provides consulting services and hosted nearly 80 IT conferences across the globe in 2007.
Executives
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Wartinbee William James Iii officer: SVP, Global Sales Strat & Ops 56 TOP GALLANT ROAD, STAMFORD CT 06902
Anne Sutherland Fuchs director
Joseph P. Beck officer: EVP, Global Technology Sales 56 TOP GALLANT RD., STAMFORD CT 06902
Eugene A Hall director, officer: CEO ONE ADP BLVD, ROSELAND NJ 07068
Altaf Rupani officer: EVP, Chief Information Officer 56 TOP GALLANT RD, STAMFORD CT 06902
Michael Fox Diliberto officer: SVP, Chief Information Officer 56 TOP GALLANT RD, STAMFORD CT 06904
Scott Hensel officer: EVP Consulting C/O GARTNER, INC., 56 TOP GALLANT RD., STAMFORD CT 06902

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