Meta Platforms ROC (Joel Greenblatt) %

: 47.43% (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. Meta Platforms's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2022 was 47.43%.

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

FB' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 24.52 Med: 94.65 Max: 149.92
Current: 65.96

During the past 12 years, Meta Platforms's highest ROC (Joel Greenblatt) % was 149.92%. The lowest was 24.52%. And the median was 94.65%.

FB's ROC (Joel Greenblatt) % is ranked better than
60.93% of 604 companies
in the Interactive Media industry
Industry Median: 12.35 vs FB: 65.96

Meta Platforms's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -16.10% per year.

Meta Platforms ROC (Joel Greenblatt) % Historical Data

The historical data trend for Meta Platforms'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.

Meta Platforms Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROC (Joel Greenblatt) %

149.92

112.36

66.34

65.50

74.84

Meta Platforms 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) %																79.62	80.06	64.32	74.37	47.43

Competitive Comparison

For the Internet Content & Information subindustry, Meta Platforms'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.

Annual Data Quarterly Data

Meta Platforms ROC (Joel Greenblatt) % Distribution

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

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

Meta Platforms 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)
=	(14039	+	0	+	4629)	-	(11037	+	561	+	8410)
=	-1340

	Working Capital		(Q: Mar. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(11390	+	0	+	3985)	-	(19407	+	520	+	0)
=	-4552

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Meta Platforms 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 )
=	34096	/	( ( (69964 + max(-1340, 0))	+	(73823 + max(-4552, 0)) )	/	2 )
=	34096	/	( ( 69964	+	73823 )	/	2 )
=	34096	/	71893.5
=	47.43 %

Note: The EBIT data used here is four times the quarterly (Mar. 2022) EBIT data.

Meta Platforms (NAS:FB) 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.

Meta Platforms ROC (Joel Greenblatt) % Related Terms

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Meta Platforms Business Description

Industry

Communication Services » Interactive Media NAICS : 519190 SIC : 7375

Comparable Companies

HKSE:00700 XAMS:PRX NYSE:SNAP NAS:BIDU XKRX:035420 NYSE:DASH NYSE:TWTR HKSE:01024 XKRX:035720 NAS:MTCH

Traded in Other Exchanges

FB:Peru FB:Mexico FB:Italy 0QZI:UK FB2A:Germany MVRS:Canada M1RS34:Brazil FB:Austria

Address

1601 Willow Road, Menlo Park, CA, USA, 94025

Website

https://www.facebook.com

Meta is the world's largest online social network, with 2.5 billion monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. On the video side, the firm is in the process of building a library of premium content and monetizing it via ads or subscription revenue. Meta refers to this as Facebook Watch. The firm's ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. Users can access Facebook on mobile devices and desktops. Advertising revenue represents more than 90% of the firm's total revenue, with 50% coming from the U.S. and Canada and 25% from Europe. With gross margins above 80%, Meta operates at a 30%-plus margin.

Executives

Newstead Jennifer	officer: VP and General Counsel	C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Fischer David B.	officer: Chief Revenue Officer	C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Wehner David M.	officer: Chief Financial Officer	C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Taylor Susan J.s.	officer: Chief Accounting Officer	C/O LINKEDIN CORPORATION 2029 STIERLIN COURT MOUNTAIN VIEW CA 94043
Kimmitt Robert M	director	C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Travis Tracey Thomas	director	PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: TRAVIS TRACEY THOMAS 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;}
Sandberg Sheryl	director, officer: Chief Operating Officer	1 FACEBOOK WAY MENLO PARK CA 94025
Killefer Nancy	director	3170 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Houston Andrew	director	333 BRANNAN STREET SAN FRANCISCO CA 94107
Schroepfer Michael Todd	officer: Chief Technology Officer	C/O FACEBOOK INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Cox Christopher K	officer: Chief Product Officer	C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Andreessen Marc L	director	C/O ARNOLD & PORTER LLP 3 EMBARCADERO CENTER 7TH FLOOR SAN FRANCISCO CA 94111
Alford Peggy	director	435 TASSO STREET PALO ALTO CA 94301
Thiel Peter	director	9200 SUNSET BOULEVARD SUITE 1110 WEST HOLLYWOOD CA 90069
Zients Jeffrey D	director	PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ZIENTS JEFFREY D 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;}