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Healthcare Services Group ROC (Joel Greenblatt) %

: 14.41% (As of Jun. 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. Healthcare Services Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2022 was 14.41%.

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

HCSG' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 21.7   Med: 49.39   Max: 57.43
Current: 17.99

During the past 13 years, Healthcare Services Group's highest ROC (Joel Greenblatt) % was 57.43%. The lowest was 21.70%. And the median was 49.39%.

HCSG's ROC (Joel Greenblatt) % is ranked better than
61.75% of 664 companies
in the Healthcare Providers & Services industry
Industry Median: 10.03 vs HCSG: 17.99

Healthcare Services Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -6.00% per year.


Healthcare Services Group ROC (Joel Greenblatt) % Historical Data

The historical data trend for Healthcare Services Group'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.

Healthcare Services Group 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 49.30 34.65 30.90 56.79 34.99

Healthcare Services Group Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 31.26 23.42 3.88 30.20 14.41

Competitive Comparison

For the Medical Care Facilities subindustry, Healthcare Services Group'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.

   

Healthcare Services Group ROC (Joel Greenblatt) % Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Healthcare Services Group's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Healthcare Services Group 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: Mar. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(319.095 + 24.82 + 35.793) - (158.01 + 6.294 + 0)
=215.404

Working Capital(Q: Jun. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(331.534 + 23.535 + 33.839) - (169.235 + 4.694 + 0)
=214.979

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Healthcare Services Group for the quarter that ended in Jun. 2022 can be restated as:

ROC (Joel Greenblatt) %(Q: Jun. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2022  Q: Jun. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=34.78/( ( (26.702 + max(215.404, 0)) + (25.632 + max(214.979, 0)) )/ 2 )
=34.78/( ( 242.106 + 240.611 )/ 2 )
=34.78/241.3585
=14.41 %

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


Healthcare Services Group  (NAS:HCSG) 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.


Healthcare Services Group ROC (Joel Greenblatt) % Related Terms

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


Healthcare Services Group Business Description

Healthcare Services Group logo
Traded in Other Exchanges
Address
3220 Tillman Drive, Suite 300, Bensalem, PA, USA, 19020
Healthcare Services Group Inc is a provider of housekeeping and facility-management services to the healthcare industry. The company operates two business segments, both contributing roughly equally to the company's revenue: Housekeeping, laundry, linen, and other services; and Dietary department services. Housekeeping includes management of clients' housekeeping departments, cleaning, disinfecting and sanitizing, laundry, and bed linen and uniform services. Dietary consists of food purchasing, meal preparation, and providing dietitian consulting services. Its clients are primarily nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States of America.
Executives
Simmons Kurt Jr director 3220 TILLMAN DRIVE BENSALEM PA 19020
Brophy Andrew M officer: Acting Accounting Officer 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Orr Patrick J officer: EVP & Chief Revenue Officer 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Grant Laura K director 3220 TILLMAN DRIVE BENSALEM PA 19020
Castagnino Daniela director 3220 TILLMAN DRIVE, SUITE 300 BENSALEM PA 19020
Kush Andrew officer: Executive Vice President 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Hurlock David officer: Executive Vice President & COO 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Visconto Jude director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Bundick Jason J officer: General Counsel & Secretary 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Mcfadden John J Jr director 19 PURDUE DRIVE RICHBORO PA 18954
Ottaviano Dino D director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Casey Diane S director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Frome Robert L director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Briggs John director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020
Moss Robert J director 3220 TILLMAN DRIVE SUITE 300 BENSALEM PA 19020

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