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HD Supply Holdings (HD Supply Holdings) ROC (Joel Greenblatt) % : 26.55% (As of Oct. 2020)


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What is HD Supply 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. HD Supply Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2020 was 26.55%.

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

HDS' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -23.46   Med: 35.54   Max: 65.38
Current: 50.71

During the past 12 years, HD Supply Holdings's highest ROC (Joel Greenblatt) % was 65.38%. The lowest was -23.46%. And the median was 35.54%.

HDS's ROC (Joel Greenblatt) % is not ranked
in the Industrial Distribution industry.
Industry Median: 19.14 vs HDS: 50.71

HD Supply Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 11.80% per year.


HD Supply Holdings ROC (Joel Greenblatt) % Historical Data

The historical data trend for HD Supply 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.

HD Supply Holdings ROC (Joel Greenblatt) % Chart

HD Supply Holdings Annual Data
Trend Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.73 34.93 50.19 63.44 51.01

HD Supply Holdings Quarterly Data
Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20
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 29.41 82.69 28.12 47.02 26.55

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

For the Industrial Distribution subindustry, HD Supply 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.


HD Supply Holdings's ROC (Joel Greenblatt) % Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, HD Supply Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:

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



HD Supply 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: Jul. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(725 + 796 + 84) - (593 + 0 + 193)
=819

Working Capital(Q: Oct. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(356.9 + 388.6 + 73.6) - (628 + 0 + 166.2)
=24.9

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of HD Supply Holdings for the quarter that ended in Oct. 2020 can be restated as:

ROC (Joel Greenblatt) %(Q: Oct. 2020 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jul. 2020  Q: Oct. 2020
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=287.6/( ( (834 + max(819, 0)) + (488.9 + max(24.9, 0)) )/ 2 )
=287.6/( ( 1653 + 513.8 )/ 2 )
=287.6/1083.4
=26.55 %

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


HD Supply Holdings  (NAS:HDS) 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.


HD Supply Holdings ROC (Joel Greenblatt) % Related Terms

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


HD Supply Holdings (HD Supply Holdings) Business Description

Traded in Other Exchanges
N/A
Address
3100 Cumberland Boulevard, Suite 1480, Atlanta, GA, USA, 30339
Through a combination of acquisitions and organic growth, HD Supply has become one of the largest industrial distributors in North America. It is currently the market leader in the two sectors in which it operates (facilities and home improvement maintenance, repair, and operations and specialty construction). Today, HD Supply offers approximately 600,000 stock-keeping units and serves 500,000 customers through 270 branches and 44 distribution centers across the United States and Canada. HD Supply sold its construction and industrial business for $2.5 billion net of taxes and transaction costs in October 2020. On Nov. 16, 2020, Home Depot announced it had entered into a definitive agreement to acquire HD Supply for $56 per share.
Executives
Dan S Mcdevitt officer: Gen. Counsel & Corp. Secretary 3100 CUMBERLAND BOULEVARD SUITE 1700 ATLANTA GA 30339
Jana Partners Llc director, other: See Remarks 767 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10153
Peter A Dorsman director
Bradley Paulsen officer: Pres, HDS Facilities Main 3400 CUMBERLAND BOULEVARD ATLANTA GA 30339
Anna Stevens officer: Chief People Officer 3400 CUMBERLAND BOULEVARD, ATLANTA GA 30339
Evan Levitt officer: SVP, CFO & CAO 3100 CUMBERLAND BLVD STE 1480 ATLANTA GA 30339
Milford W Mcguirt director 3400 CUMBERLAND BOULEVARD, ATLANTA GA 30339
Joseph J Deangelo director, officer: Chairman, President and CEO 3100 CUMBERLAND BOULEVARD, SUITE 1700, ATLANTA GA 30339
Patrick Mcnamee director C/O EXPRESS SCRIPTS, INC. 13900 RIVERPORT DRIVE MARYLAND HEIGHTS MO 63043
Lauren Taylor Wolfe director 3100 CUMBERLAND BOULEVARD, SUITE 1700, ATLANTA GA 30339
James A Rubright director 3435 WOODHAVEN RD NW, ATLANTA GA 30305
Kathleen J Affeldt director
Stephen J. Konenkamp director 3400 CUMBERLAND BOULEVARD ATLANTA GA 30339
Charles Peffer director 5424 MOHAWK, FAIRWAY KS 66205
John Stegeman officer: Pres, HD Supply C&I-White Cap 3100 CUMBERLAND BLVD STE 1480 ATLANTA GA 30339

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