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DocuSign ROC (Joel Greenblatt) %

: -72.86% (As of Jul. 2020)
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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. DocuSign's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2020 was -72.86%.

NAS:DOCU' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -601.17   Med: -227.72   Max: -63.54
Current: -63.54
-601.17
-63.54

During the past 5 years, DocuSign's highest ROC (Joel Greenblatt) % was -63.54%. The lowest was -601.17%. And the median was -227.72%.

NAS:DOCU's ROC (Joel Greenblatt) % is ranked lower than
73% of the 2182 Companies
in the Software industry.

( Industry Median: 16.64 vs. NAS:DOCU: -63.54 )

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

DocuSign ROC (Joel Greenblatt) % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

DocuSign Annual Data
Jan16 Jan17 Jan18 Jan19 Jan20
ROC (Joel Greenblatt) % -323.91 -227.72 -76.59 -601.17 -99.61

DocuSign Quarterly Data
Jan16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20
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 -105.41 -65.60 -62.49 -53.08 -72.86
Competitive Comparison
* 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.

DocuSign ROC (Joel Greenblatt) % Distribution

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


DocuSign 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: Apr. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(220.602 + 0 + 51.456) - (67.979 + 552.345 + 81.653)
=-429.919

Working Capital(Q: Jul. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(224.502 + 0 + 52.438) - (87.969 + 624.031 + 111.623)
=-546.683

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of DocuSign for the quarter that ended in Jul. 2020 can be restated as:

ROC (Joel Greenblatt) %(Q: Jul. 2020 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Apr. 2020  Q: Jul. 2020
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-224.136/( ( (296.295 + max(-429.919, 0)) + (318.959 + max(-546.683, 0)) )/ 2 )
=-224.136/( ( 296.295 + 318.959 )/ 2 )
=-224.136/307.627
=-72.86 %

Note: The EBIT data used here is four times the quarterly (Jul. 2020) EBIT data.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

DocuSign  (NAS:DOCU) 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.

DocuSign ROC (Joel Greenblatt) % Related Terms

DocuSign ROC (Joel Greenblatt) % Headlines

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