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LinkedIn (LinkedIn) ROC (Joel Greenblatt) % : 7.58% (As of Sep. 2016)


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What is LinkedIn 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. LinkedIn's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 was 7.58%.

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

LNKD's ROC (Joel Greenblatt) % is not ranked *
in the Interactive Media industry.
Industry Median: 0.6
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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


LinkedIn ROC (Joel Greenblatt) % Historical Data

The historical data trend for LinkedIn'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.

LinkedIn ROC (Joel Greenblatt) % Chart

LinkedIn Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial 30.12 37.88 17.95 6.89 -18.33

LinkedIn Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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 -20.98 -7.85 -23.95 -1.75 7.58

Competitive Comparison of LinkedIn's ROC (Joel Greenblatt) %

For the Internet Content & Information subindustry, LinkedIn'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.


LinkedIn's ROC (Joel Greenblatt) % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, LinkedIn's ROC (Joel Greenblatt) % distribution charts can be found below:

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



LinkedIn 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. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(560.44 + 0 + 232.877) - (401.712 + 785.68 + 2.2737367544323E-13)
=-394.075

Working Capital(Q: Sep. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(541.325 + 0 + 196.692) - (510.58 + 749.491 + 0)
=-522.054

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of LinkedIn for the quarter that ended in Sep. 2016 can be restated as:

ROC (Joel Greenblatt) %(Q: Sep. 2016 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2016  Q: Sep. 2016
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=103.668/( ( (1228.402 + max(-394.075, 0)) + (1508.48 + max(-522.054, 0)) )/ 2 )
=103.668/( ( 1228.402 + 1508.48 )/ 2 )
=103.668/1368.441
=7.58 %

Note: The EBIT data used here is four times the quarterly (Sep. 2016) 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.


LinkedIn  (NYSE:LNKD) 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.


LinkedIn ROC (Joel Greenblatt) % Related Terms

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LinkedIn (LinkedIn) Business Description

Traded in Other Exchanges
N/A
Address
LinkedIn Corp was incorporated in Delaware on March 6, 2003, under the name LinkedIn, Ltd. and changed its name to LinkedIn Corporation in January 2005. The Company operates an online professional network on the Internet through which the Company's members are able to create, manage and share their professional identities online, build and engage with their professional networks, access shared knowledge and insights, and find business opportunities, enabling them to be more productive and successful. The Company currently has approximately over 400 million members in over 200 countries and territories. The Company offers free solutions including Stay Connected & Informed, Advance My Career and Ubiquitous Access; and Monetized Solutions including Talent Solutions, Marketing Solutions, and Premium Subscriptions. Its comprehensive platform provides members with solutions, including applications and tools, to search, connect and communicate with business contacts, learn about attractive career opportunities, join industry groups, research organizations and share information. The Company provides the following key benefits to their members: ability to manage their professional identity, enhanced ability to build and engage with their professional network, access to knowledge, insights and opportunities, aid in matching talent with opportunity, an efficient marketing channel, targeted advertising, and an increase in employee productivity. In addition, its core value of putting members first may conflict with the short-term interests of its business, the number of its registered members is higher than the number of actual members, and a substantial majority of its page views are generated by a minority of its members. Finally, it expects to face increasing competition in the market for online professional networks. The Company is subject to a number of foreign and domestic laws and regulations that affect companies conducting business online, many of which are still evolving and could be interpreted in ways that could harm its business.
Executives
A George Battle director 600 TOWNSEND ST, SUITE 500, SAN FRANCISCO CA 94103
Taylor Susan J.s. officer: VP, Corporate Controller & CAO C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Patricia L Wadors officer: SVP Global Talent Organization C/O ALIGN TECHNOLOGY INC, 881 MARTIN AVE, SANTA CLARA CA 95050
Stanley J Meresman director 2071 HUNTINGTON LANE, LOS ALTOS CA 94024
Jeff Weiner director, officer: Chief Executive Officer C/O LINKEDIN CORPORATION, 394 PACIFIC AVENUE 2ND FLOOR, SAN FRANCISCO CA 94111
Leslie J Kilgore director 121 ALBRIGHT WAY, LOS GATOS CA 95032
Reid Hoffman director, 10 percent owner C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Michael J Moritz director C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Dipchand Nishar officer: SVP, Products, User Experience C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Erika Rottenberg officer: VP, GC & Secretary 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Greylock Xi Limited Partnership 10 percent owner ONE BRATTLE SQUARE, 4TH FLOOR, CAMBRIDGE MA 02138
Greylock Xi Gp Limited Partnership 10 percent owner ONE BRATTLE SQUARE, 4TH FLOOR, CAMBRIDGE MA 02138
Sequoia Capital Xi Principals Fund 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sc Xi Management Llc 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Sequoia Technology Partners Xi 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025

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