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RMG Networks Holding (RMG Networks Holding) ROC (Joel Greenblatt) % : -206.02% (As of Jun. 2018)


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What is RMG Networks Holding 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. RMG Networks Holding's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2018 was -206.02%.

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

RMGN's ROC (Joel Greenblatt) % is not ranked *
in the Business Services industry.
Industry Median: 20.65
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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


RMG Networks Holding ROC (Joel Greenblatt) % Historical Data

The historical data trend for RMG Networks Holding'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.

RMG Networks Holding ROC (Joel Greenblatt) % Chart

RMG Networks Holding Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial - -317.81 -203.76 -114.56 -147.77

RMG Networks Holding Quarterly Data
Mar13 Sep13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
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 -107.36 -218.95 -99.18 -326.06 -206.02

Competitive Comparison of RMG Networks Holding's ROC (Joel Greenblatt) %

For the Specialty Business Services subindustry, RMG Networks Holding'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.


RMG Networks Holding's ROC (Joel Greenblatt) % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, RMG Networks Holding's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where RMG Networks Holding's ROC (Joel Greenblatt) % falls into.



RMG Networks Holding 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. 2018 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(9.817 + 0.872 + 1.111) - (4.246 + 7.821 + 0)
=-0.267

Working Capital(Q: Jun. 2018 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(9.404 + 0.792 + 0.966) - (4.841 + 7.986 + -1.7763568394003E-15)
=-1.665

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of RMG Networks Holding for the quarter that ended in Jun. 2018 can be restated as:

ROC (Joel Greenblatt) %(Q: Jun. 2018 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2018  Q: Jun. 2018
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-5.408/( ( (2.726 + max(-0.267, 0)) + (2.524 + max(-1.665, 0)) )/ 2 )
=-5.408/( ( 2.726 + 2.524 )/ 2 )
=-5.408/2.625
=-206.02 %

Note: The EBIT data used here is four times the quarterly (Jun. 2018) 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.


RMG Networks Holding  (NAS:RMGN) 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.


RMG Networks Holding ROC (Joel Greenblatt) % Related Terms

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RMG Networks Holding (RMG Networks Holding) Business Description

Traded in Other Exchanges
N/A
Address
RMG Networks Holding Corp is a United States based company. It provides enterprise-class digital signage solutions that are relied upon by a majority of Fortune 100 companies and thousands of overall customers in locations worldwide. Its products are proprietary software, software-embedded hardware, maintenance and support services, content and creative services, installation services and third-party displays. The company delivers complete end-to-end intelligent visual communication solutions to its clients for critical contact center, supply chain, internal communications, hospitality, retail and other applications with a large concentration of customers in the financial services, telecommunications, manufacturing, healthcare, pharmaceutical, and in federal, state and local governments.
Executives
Gregory H Sachs director, 10 percent owner, officer: Executive Chairman SACHS CAPITAL GROUP, 2132 DEEP WATER LANE, SUITE 232, NAPERVILLE IL 60564
Par Capital Management Inc 10 percent owner 200 CLARENDON STREET, FL 48, BOSTON MA 02116
Par Investment Partners Lp 10 percent owner 200 CLARENDON STREET, FL 48, BOSTON MA 02116
Par Group, L.p. 10 percent owner ONE INTERNATIONAL PLACE, SUITE 2401, BOSTON MA 02110
Donna L Parlapiano director 200 SW 1ST AVE, SUITE 1600, FORT LAUDERDALE FL 33301