Hollysys Automation Technologies (Hollysys Automation Technologies) ROC (Joel Greenblatt) % : 86.84% (As of Sep. 2023)

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What is Hollysys Automation Technologies 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. Hollysys Automation Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 86.84%.

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

HOLI' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 67.78 Med: 97.39 Max: 156.3
Current: 78.84

During the past 13 years, Hollysys Automation Technologies's highest ROC (Joel Greenblatt) % was 156.30%. The lowest was 67.78%. And the median was 97.39%.

HOLI's ROC (Joel Greenblatt) % is ranked better than
93.55% of 3006 companies
in the Industrial Products industry
Industry Median: 13.665 vs HOLI: 78.84

Hollysys Automation Technologies's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -6.10% per year.

Hollysys Automation Technologies ROC (Joel Greenblatt) % Historical Data

The historical data trend for Hollysys Automation Technologies'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.

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Hollysys Automation Technologies ROC (Joel Greenblatt) % Chart

Hollysys Automation Technologies Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC (Joel Greenblatt) %

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109.56

88.70

98.36

77.37

74.65

Hollysys Automation Technologies Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROC (Joel Greenblatt) %	Get a 7-Day Free Trial															76.73	138.37	34.43	56.07	86.84

Competitive Comparison of Hollysys Automation Technologies's ROC (Joel Greenblatt) %

For the Electrical Equipment & Parts subindustry, Hollysys Automation Technologies'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.

Hollysys Automation Technologies's ROC (Joel Greenblatt) % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Hollysys Automation Technologies's ROC (Joel Greenblatt) % distribution charts can be found below:

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

Hollysys Automation Technologies 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: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(344.785	+	111.634	+	52.098)	-	(268.402	+	181.387	+	3.238)
=	55.49

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(308.788	+	112.261	+	55.888)	-	(275.653	+	202.782	+	3.0939999999999)
=	-4.5920000000001

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Hollysys Automation Technologies for the quarter that ended in Sep. 2023 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	148.692	/	( ( (138.062 + max(55.49, 0))	+	(148.882 + max(-4.5920000000001, 0)) )	/	2 )
=	148.692	/	( ( 193.552	+	148.882 )	/	2 )
=	148.692	/	171.217
=	86.84 %

Note: The EBIT data used here is four times the quarterly (Sep. 2023) EBIT data.

Hollysys Automation Technologies (NAS:HOLI) 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.

Hollysys Automation Technologies ROC (Joel Greenblatt) % Related Terms

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Hollysys Automation Technologies (Hollysys Automation Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Hollysys Automation Technologies Ltd (NAS:HOLI) » Definitions » ROC (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

46H:Germany

Address

No. 2 Disheng Middle Road, Beijing Economic-Technological Development Area, Beijing, CHN, 100176

Website

https://www.hollysys.com/index.php

Hollysys Automation Technologies Ltd is a China-based company that provides automation and control technologies and products. The company operates through three segments. Its IA segment supplies solutions including third-party hardware-centric products, proprietary software products, and others. The Rail segment supplies train control center and automation train protection to the rail and subway industries. The M&E segment consists of its two Southeast Asia-based subsidiaries that provide mechanical and electrical solutions. Hollysys Automation Technologies generates most of its sales from the Chinese domestic market.