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Akamai Technologies ROC (Joel Greenblatt) %

: 26.50% (As of Mar. 2022)
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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. Akamai Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2022 was 26.50%.

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

AKAM' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 31.39   Med: 51.52   Max: 103.38
Current: 31.39

During the past 13 years, Akamai Technologies's highest ROC (Joel Greenblatt) % was 103.38%. The lowest was 31.39%. And the median was 51.52%.

AKAM's ROC (Joel Greenblatt) % is ranked better than
59.8% of 2657 companies
in the Software industry
Industry Median: 12.63 vs AKAM: 31.39

Akamai Technologies's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -9.50% per year.


Akamai Technologies ROC (Joel Greenblatt) % Historical Data

The historical data trend for Akamai Technologies'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.

Akamai Technologies Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROC (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.19 42.70 41.25 32.44 33.94

Akamai Technologies Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 31.15 32.59 33.97 32.77 26.50

Competitive Comparison

For the Software - Infrastructure subindustry, Akamai Technologies'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.

   

Akamai Technologies ROC (Joel Greenblatt) % Distribution

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

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



Akamai Technologies 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: Dec. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(501.959 + 0 + 166.313) - (515.125 + 86.517 + 13.016)
=53.614

Working Capital(Q: Mar. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(511.584 + 0 + 238.821) - (465.736 + 139.725 + 5.0419999999999)
=139.902

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Akamai Technologies for the quarter that ended in Mar. 2022 can be restated as:

ROC (Joel Greenblatt) %(Q: Mar. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2021  Q: Mar. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=655.016/( ( (2350.083 + max(53.614, 0)) + (2399.713 + max(139.902, 0)) )/ 2 )
=655.016/( ( 2403.697 + 2539.615 )/ 2 )
=655.016/2471.656
=26.50 %

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


Akamai Technologies  (NAS:AKAM) 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.


Akamai Technologies ROC (Joel Greenblatt) % Related Terms

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


Akamai Technologies Business Description

Akamai Technologies logo
Industry
Technology » Software NAICS : 561499 SIC : 7389
Address
145 Broadway, Cambridge, MA, USA, 02142
Akamai operates a content delivery network, or CDN, which entails locating servers at the edges of networks so its customers, which store content on Akamai servers, can reach their own customers faster, more securely, and with better quality. Akamai has over 325,000 servers distributed over 4,000 points of presence in more than 1,000 cities worldwide. Its customers generally include media companies, which stream video content or make video games available for download, and other enterprises that run interactive or high-traffic websites, such as e-commerce firms and financial institutions. Akamai also has a significant security business, which is integrated with its core web and media businesses to protect its customers from cyber threats.
Executives
Williams Anthony P officer: EVP and CHRO C/O AKAMAI TECHNOLOGIES, INC. 145 BROADWAY CAMBRIDGE MA 02142
Mcconnell Rick M officer: President and GM Web Division LATITUDE 2121 TASMAN DRIVE SANTA CLARA CA 4089887256
Ahola Aaron officer: EVP & General Counsel C/O AKAMAI TECHNOLOGIES, INC. 150 BROADWAY CAMBRIDGE MA 02142
Blumofe Robert officer: EVP Platform & GM Enterprise C/O AKAMAI TECHNOLOGIES, INC. 8 CAMBRIDGE CENTER CAMBRIDGE MA 02142
Mcgowan Edward J officer: Chief Financial Officer C/O AKAMAI TECHNOLOGIES, INC. 150 BROADWAY CAMBRIDGE MA 02142
Ranganathan Madhu director 760 MARKET STREET 4TH FLOOR SAN FRANCISCO CA 94102
Wagner William Raymond director C/O VOCUS, INC. 4296 FORBES BOULEVARD LANHAM MD 20706
Miller Jon director C/O TRIPADVISOR, INC 141 NEEDHAM STREET NEWTON MA 02464
Sundaram Mani officer: EVP GSS and CIO C/O AKAMAI TECHNOLOGIES, INC. 145 BROADWAY CAMBRIDGE MA 02142
Brown Marianne Catherine director 4094 TIMUQUANA ROAD JACKSONVILLE FL 33210-8571
Killalea Peter Thomas director C/O XOOM CORPORATION 425 MARKET STREET, 12TH FLOOR SAN FRANCISCO CA 94105
Greenthal Jill A director MARTHA STEWART LIVING OMNIMEDIA INC 11 WEST 42ND STREET 25TH FLOOR NEW YORK NY 10036
Verwaayen Bernardus Johannes Maria director 55 GLENLAKE PARKWAY NE ATLANTA GA 30328
Hesse Daniel director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HESSE DANIEL a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Salerno Frederic V director 115 S JEFFERSON RD WHIPPANY NJ 07981

Akamai Technologies Headlines

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