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Herbalife Nutrition ROC (Joel Greenblatt) %

: 93.45% (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. Herbalife Nutrition's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2022 was 93.45%.

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

HLF' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 89.97   Med: 157.97   Max: 305.83
Current: 89.97

During the past 13 years, Herbalife Nutrition's highest ROC (Joel Greenblatt) % was 305.83%. The lowest was 89.97%. And the median was 157.97%.

HLF's ROC (Joel Greenblatt) % is ranked better than
94.98% of 1814 companies
in the Consumer Packaged Goods industry
Industry Median: 10.69 vs HLF: 89.97

Herbalife Nutrition's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -6.20% per year.


Herbalife Nutrition ROC (Joel Greenblatt) % Historical Data

The historical data trend for Herbalife Nutrition'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.

Herbalife Nutrition 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 167.31 174.97 131.25 110.63 111.98

Herbalife Nutrition 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 137.99 121.14 52.74 93.07 93.45

Competitive Comparison

For the Packaged Foods subindustry, Herbalife Nutrition'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.

   

Herbalife Nutrition ROC (Joel Greenblatt) % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Herbalife Nutrition's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Herbalife Nutrition 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)
=(84 + 570 + 215.4) - (428.7 + 81.7 + 517.6)
=-158.6

Working Capital(Q: Jun. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(83.4 + 554.3 + 210.9) - (442.7 + 81 + 461.4)
=-136.5

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Herbalife Nutrition 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 )
=629.2/( ( (668.5 + max(-158.6, 0)) + (678.1 + max(-136.5, 0)) )/ 2 )
=629.2/( ( 668.5 + 678.1 )/ 2 )
=629.2/673.3
=93.45 %

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.


Herbalife Nutrition  (NYSE:HLF) 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.


Herbalife Nutrition ROC (Joel Greenblatt) % Related Terms

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


Herbalife Nutrition Business Description

Herbalife Nutrition logo
Traded in Other Exchanges
Address
Ugland House, South Church Street, P.O. Box 309GT, Grand Cayman, CYM
Herbalife Nutrition Ltd is an international nutrition company. The company has five revenue segments: weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature, promotional, and other. The most important segment, weight management, contributing more than 50% of revenue, has as representative products protein drinks, powder, and bars, and herbal tea concentrates, among others. The targeted nutrition segment offers dietary and nutritional supplements rich in herbs, minerals, and vitamins. Energy, sports, and fitness offers energy drinks, while outer nutrition offers facial skin-care, body-care, and hair-care products. Geographically, the main segments are North America, Mexico, South and Central America, EMEA, Asia-Pacific, and China.
Executives
Del Genes Celine director 800 WEST OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Mulligan Donal L director ONE GENERAL MILLS BLVD MINNEAPOLIS MN 55426
Jones Kevin M. director 1 FANATICAL PLACE CITY OF WINDCREST SAN ANTONIO TX 78218
L'helias Sophie director 800 WEST OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Irani Jehangir D officer: Principal Accounting Officer 800 WEST OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Agwunobi John O officer: Co-President/Chief H&N Officer 4800 NORTH SCOTTSDALE ROAD SCOTTSDALE AZ 85251
Wang Henry C officer: EVP, General Counsel 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Graziano Nick director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Palau Hernandez Margarita director 300 N. SAN RAFAEL AVE. PASADENA CA 91105
Lefevre Alan W director HERBALIFE NUTRITION 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Mendoza Juan Miguel director 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Guo Woody officer: SVP, Managing Director, China 800 W. OLYMPIC BLVD., SUITE #406 LOS ANGELES CA 90015
Amezquita Alexander officer: SVP, Finance & Strat. Planning 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Harms Thomas officer: SVP, China & APAC 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Schissel Mark J officer: EVP, WW Operations 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015

Herbalife Nutrition Headlines

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