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EarthLink Holdings (EarthLink Holdings) ROC (Joel Greenblatt) % : 9.80% (As of Dec. 2016)


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What is EarthLink Holdings 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. EarthLink Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2016 was 9.80%.

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

ELNK's ROC (Joel Greenblatt) % is not ranked *
in the Telecommunication Services industry.
Industry Median: 13.645
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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


EarthLink Holdings ROC (Joel Greenblatt) % Historical Data

The historical data trend for EarthLink 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.

EarthLink Holdings ROC (Joel Greenblatt) % Chart

EarthLink Holdings Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.04 -62.34 -4.92 2.44 14.02

EarthLink Holdings Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
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 -12.78 16.02 18.24 13.24 9.80

Competitive Comparison of EarthLink Holdings's ROC (Joel Greenblatt) %

For the Telecom Services subindustry, EarthLink 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.


EarthLink Holdings's ROC (Joel Greenblatt) % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, EarthLink Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:

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



EarthLink 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: Sep. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(70.92 + 0 + 23.552) - (91.518 + 37.122 + 15.896)
=-50.064

Working Capital(Q: Dec. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(76.765 + 0 + 22.699) - (88.977 + 37.051 + 18.161)
=-44.725

When net working capital is negative, 0 is used.

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

ROC (Joel Greenblatt) %(Q: Dec. 2016 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2016  Q: Dec. 2016
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=32.56/( ( (333.507 + max(-50.064, 0)) + (331.119 + max(-44.725, 0)) )/ 2 )
=32.56/( ( 333.507 + 331.119 )/ 2 )
=32.56/332.313
=9.80 %

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


EarthLink Holdings  (NAS:ELNK) 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.


EarthLink Holdings ROC (Joel Greenblatt) % Related Terms

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EarthLink Holdings (EarthLink Holdings) Business Description

Traded in Other Exchanges
N/A
Address
EarthLink Holdings Corp was incorporated on December 3, 2013 as a Delaware corporation in connection with the Holding Company Reorganization. On December 31, 2013, through the creation of a new holding company structure, EarthLink, Inc. merged with EarthLink, LLC, which became a wholly-owned subsidiary of a new publicly traded parent company, EarthLink Holdings Corp. The Company together with its subsidiaries provides managed network, security and cloud services to business and residential customers in the United States. It also offers data, voice and managed network services to retail and wholesale business customers; and provides Internet access and related value-added services to residential customers. The Company operates a network including more than 29,000 route miles of fiber and 90 metro fiber rings that provide data and voice IP service coverage across more than 90 percent of the United States. The Company operates four segments aligned around distinct customer categories including Enterprise/Mid-Market, Small Business, Carrier/Transport and Consumer. The Company's Enterprise/Mid-Market segment provides data, voice and managed network services to distributed multi-site business customers; Small Business segment provides data, voice and managed network services to small, often single-site business customers; Carrier/Transport segment provides transmission capacity and other data, voice and managed network services to telecommunications carriers and large enterprises; and Consumer Services segment provides nationwide Internet access and related value-added services to residential customers. The Company faces competition from competitors including AT&T, CenturyLink, Verizon, XO and Zayo. It also faces competition from ILECs, CLECs, cable service providers and wireless and satellite service providers. The Company's communications services are subject to varying degrees of federal, state and local regulation.
Executives
Walter Turek director 911 PANORAMA TRAIL S, ROCHESTER NY 14625
R. Gerard Salemme director 815 CONNECTICUT AVE., SUITE 610, WASHINGTON DC 20036
Kathy S Lane director C/O GILLETTE COMPANY, PRUDENTIAL TOWER BUILDING, BOSTON MA 02199
Julie Ann Shimer director 18453 LAS CUMBRES ROAD, LOS GATOS CA 95033
Gerard Brossard officer: EVP, Enterprise & Mid-Market 1170 PEACHTREE STREET, ATLANTA GA 30309
Valerie C Benjamin officer: SVP, Human Resources 1375 PEACHTREE STREET, ATLANTA GA 30309
Susan D Bowick director C/O HEWLETT-PACKARD CO, 3000 HANOVER STREET, PALO ALTO CA 94304
Joseph F Eazor director, officer: Chief Executive Officer 1170 PEACHTREE STREET, SUITE 900, ATLANTA GA 30309
Marc F Stoll director C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Manuel W Wisehart director 909 5TH AVE., UNIT 2101, SEATTLE WA 98164
S Marce Fuller director MIRANT CORPORATION, 1155 PERIMETER CENTER WEST, ATLANTA GA 30338
Thomas E Wheeler director 1250 CONNECTICUT AVE NW, CELLULAR TELECOMMUNICATIONS& INTERNET, WASHINGTON DC 20036
Barbara Dondiego officer: SVP Chief Marketing Officer 1375 PEACHTREE STREET ATLANTA GA 30309
Nathaniel A Davis director 1500 ECKINGTON PLACE NE, WASHINGTON DC 20002
Terrell B Jones director

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