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Taylor Devices ROC (Joel Greenblatt) %

: 3.52% (As of Aug. 2020)
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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. Taylor Devices's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2020 was 3.52%.

NAS:TAYD' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.07   Med: 15.62   Max: 36.65
Current: 14.52

3.07
36.65

During the past 13 years, Taylor Devices's highest ROC (Joel Greenblatt) % was 36.65%. The lowest was 3.07%. And the median was 15.62%.

NAS:TAYD's ROC (Joel Greenblatt) % is ranked higher than
62% of the 2507 Companies
in the Industrial Products industry.

( Industry Median: 9.67 vs. NAS:TAYD: 14.52 )

Taylor Devices's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -14.90% per year.


Taylor Devices ROC (Joel Greenblatt) % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Taylor Devices Annual Data
May11 May12 May13 May14 May15 May16 May17 May18 May19 May20
ROC (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.65 15.97 3.07 13.78 15.27

Taylor Devices Quarterly Data
Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20
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 7.00 20.46 18.64 16.54 3.52

Competitive Comparison
* 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.


Taylor Devices ROC (Joel Greenblatt) % Distribution

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



Taylor Devices 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: May. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5.819 + 10.107 + 0.511) - (3.34 + 0.737 + -0.00099999999999945)
=12.361

Working Capital(Q: Aug. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4.709 + 9.55 + 0.514) - (1.573 + 0.11 + 0.855)
=12.235

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Taylor Devices for the quarter that ended in Aug. 2020 can be restated as:

ROC (Joel Greenblatt) %(Q: Aug. 2020 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: May. 2020  Q: Aug. 2020
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=0.764/( ( (9.407 + max(12.361, 0)) + (9.362 + max(12.235, 0)) )/ 2 )
=0.764/( ( 21.768 + 21.597 )/ 2 )
=0.764/21.6825
=3.52 %

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

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Taylor Devices  (NAS:TAYD) 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.


Taylor Devices ROC (Joel Greenblatt) % Related Terms


Taylor Devices ROC (Joel Greenblatt) % Headlines

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