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Rivian Automotive ROC (Joel Greenblatt) %

: -177.59% (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. Rivian Automotive's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2022 was -177.59%.

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

RIVN' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -188.78   Med: -125.24   Max: -109.9
Current: -183.79

During the past 3 years, Rivian Automotive's highest ROC (Joel Greenblatt) % was -109.90%. The lowest was -188.78%. And the median was -125.24%.

RIVN's ROC (Joel Greenblatt) % is ranked worse than
96.28% of 1237 companies
in the Vehicles & Parts industry
Industry Median: 9.98 vs RIVN: -183.79

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


Rivian Automotive ROC (Joel Greenblatt) % Historical Data

The historical data trend for Rivian Automotive'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.

Rivian Automotive Annual Data
Trend Dec19 Dec20 Dec21
ROC (Joel Greenblatt) %
-125.24 -109.90 -188.78

Rivian Automotive Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
ROC (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only -107.28 -91.15 -176.25 -301.95 -177.59

Competitive Comparison

For the Auto Manufacturers subindustry, Rivian Automotive'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.

   

Rivian Automotive ROC (Joel Greenblatt) % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Rivian Automotive's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Rivian Automotive 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)
=(26 + 274 + 126) - (1150 + 74 + 0)
=-798

Working Capital(Q: Mar. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(22 + 494 + 98) - (1317 + 81 + 0)
=-784

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Rivian Automotive 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 )
=-6284/( ( (3411 + max(-798, 0)) + (3666 + max(-784, 0)) )/ 2 )
=-6284/( ( 3411 + 3666 )/ 2 )
=-6284/3538.5
=-177.59 %

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


Rivian Automotive  (NAS:RIVN) 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.


Rivian Automotive ROC (Joel Greenblatt) % Related Terms

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Rivian Automotive Business Description

Rivian Automotive logo
Traded in Other Exchanges
Address
14600 Myford Road, Irvine, CA, USA, 92606
Rivian Automotive Inc designs, develops and manufactures category-defining electric vehicles and accessories.
Executives
Flatley Jay T director 9885 TOWNE CENTRE DR SAN DIEGO CA 92121
Thomas-graham Pamela director C/O IDENIX PHARMACEUTICALS, INC. 60 HAMPSHIRE STREET CAMBRIDGE MA 02139
Baker Jeff officer: Chief Accounting Officer 1221 BROADWAY OAKLAND CA 94612
Boone Karen director 15 KOCH ROAD SUITE J CORTE MADERA CA 94925
Amazon Com Inc director, 10 percent owner 410 TERRY AVENUE NORTH SEATTLE WA 98109
Ford Motor Co 10 percent owner ONE AMERICAN RD DEARBORN MI 48126
Marcario Rose M director 21101 OXNARD STREET WOODLAND HILLS CA 91367
Mcdonough Claire officer: Chief Financial Officer C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Krawiec Peter director C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Scaringe Robert J director, officer: Chief Executive Officer C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Behl Jiten officer: Chief Growth Officer C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Schwartz Sanford Harold director C/O RIVIAN AUTOMOTIVE, INC. 14600 MYFORD ROAD IRVINE CA 92618
Global Oryx Group Holding Co Ltd 10 percent owner 15 ESPLANADE ST. HELIER Y9 JE1 1RB

Rivian Automotive Headlines

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