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FirstEnergy ROC (Joel Greenblatt) %

: 5.56% (As of Jun. 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. FirstEnergy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2022 was 5.56%.

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

FE' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.28   Med: 6.64   Max: 8.84
Current: 7.68

During the past 13 years, FirstEnergy's highest ROC (Joel Greenblatt) % was 8.84%. The lowest was 3.28%. And the median was 6.64%.

FE's ROC (Joel Greenblatt) % is ranked worse than
56.54% of 474 companies
in the Utilities - Regulated industry
Industry Median: 9.41 vs FE: 7.68

FirstEnergy's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.80% per year.


FirstEnergy ROC (Joel Greenblatt) % Historical Data

The historical data trend for FirstEnergy'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.

FirstEnergy Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROC (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.28 8.84 6.75 6.52 7.72

FirstEnergy Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 4.97 8.98 8.62 7.63 5.56

Competitive Comparison

For the Utilities - Regulated Electric subindustry, FirstEnergy'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.

   

FirstEnergy ROC (Joel Greenblatt) % Distribution

For the Utilities - Regulated industry and Utilities sector, FirstEnergy's ROC (Joel Greenblatt) % distribution charts can be found below:

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



FirstEnergy 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. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1126 + 273 + 322) - (2252 + 0 + 703)
=-1234

Working Capital(Q: Jun. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1140 + 304 + 369) - (2068 + 0 + 949)
=-1204

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of FirstEnergy for the quarter that ended in Jun. 2022 can be restated as:

ROC (Joel Greenblatt) %(Q: Jun. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2022  Q: Jun. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1956/( ( (34996 + max(-1234, 0)) + (35367 + max(-1204, 0)) )/ 2 )
=1956/( ( 34996 + 35367 )/ 2 )
=1956/35181.5
=5.56 %

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


FirstEnergy  (NYSE:FE) 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.


FirstEnergy ROC (Joel Greenblatt) % Related Terms

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


FirstEnergy Business Description

FirstEnergy logo
Address
76 South Main Street, Akron, OH, USA, 44308
FirstEnergy is one of the largest investor-owned utilities in the United States with 10 regulated distribution companies across six mid-Atlantic and Midwestern states. FirstEnergy also owns and operates one of the nation's largest electric transmission systems with 24,000 miles of lines.
Executives
Croom Jana T director 1205 KIMBALL BLVD. JASPER IN 47546
Klimczak Sean director C/O THE BLACKSTONE GROUP 345 PARK AVE. NEW YORK NY 10154
Hicks Lisa Winston director 76 S. MAIN ST AKRON OH 44308
Kaleta Paul J director P O BOX 30150 RENO NV 89520
Williams Melvin D. director 76 SOUTH MAIN STREET AKRON OH 44308
Teno Andrew director C/O FIR TREE INC. 55 WEST 46TH STREET, 29TH FLOOR NEW YORK NY 10036
Lynn Jesse director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Somerhalder John W Ii director, officer: Vice Chair & Exec Director 76 SOUTH MAIN STREET AKRON OH 44308
Park Hyun officer: SVP & CLO 76 SOUTH MAIN STREET AKRON OH 44308
Turner Leslie M director THE HERSHEY COMPANY 100 CRYSTAL A DRIVE HERSHEY PA 17036
Mikkelsen Eileen officer: VP, Rates & Regulatory Affairs 76 SOUTH MAIN STREET AKRON OH 44308
Prezelj Irena officer: VP, Investor Relations 76 SOUTH MAIN STREET AKRON OH 44308
Walker Christine officer: VP, Human Resources 76 SOUTH MAIN STREET AKRON OH 44308
Belcher Samuel officer: SVP & President, FE Utilities 76 SOUTH MAIN STREET AKRON OH 44308
Lisowski Jason officer: VP, Controller & CAO 76 SOUTH MAIN STREET AKRON OH 44333

FirstEnergy Headlines

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