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International Flavors & Fragrances ROC (Joel Greenblatt) %

: 9.42% (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. International Flavors & Fragrances's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2022 was 9.42%.

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

IFF' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 11.7   Med: 36.27   Max: 42.28
Current: 12.7

During the past 13 years, International Flavors & Fragrances's highest ROC (Joel Greenblatt) % was 42.28%. The lowest was 11.70%. And the median was 36.27%.

IFF's ROC (Joel Greenblatt) % is ranked worse than
58.9% of 1455 companies
in the Chemicals industry
Industry Median: 16.73 vs IFF: 12.70

International Flavors & Fragrances's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -20.90% per year.


International Flavors & Fragrances ROC (Joel Greenblatt) % Historical Data

The historical data trend for International Flavors & Fragrances'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.

International Flavors & Fragrances 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 39.27 28.20 26.69 20.85 11.70

International Flavors & Fragrances 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 6.03 15.71 8.93 16.94 9.42

Competitive Comparison

For the Specialty Chemicals subindustry, International Flavors & Fragrances'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.

   

International Flavors & Fragrances ROC (Joel Greenblatt) % Distribution

For the Chemicals industry and Basic Materials sector, International Flavors & Fragrances's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where International Flavors & Fragrances's ROC (Joel Greenblatt) % falls into.



International Flavors & Fragrances 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)
=(2160 + 2795 + 1592) - (2752 + 0 + 229)
=3566

Working Capital(Q: Jun. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2180 + 2993 + 1692) - (2645 + 0 + 222)
=3998

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of International Flavors & Fragrances 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 )
=828/( ( (5058 + max(3566, 0)) + (4951 + max(3998, 0)) )/ 2 )
=828/( ( 8624 + 8949 )/ 2 )
=828/8786.5
=9.42 %

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.


International Flavors & Fragrances  (NYSE:IFF) 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.


International Flavors & Fragrances ROC (Joel Greenblatt) % Related Terms

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


International Flavors & Fragrances Business Description

International Flavors & Fragrances logo
Address
521 West 57th Street, New York, NY, USA, 10019-2960
International Flavors & Fragrances produces ingredients for the food, beverage, health, household goods, personal care, and pharmaceutical industries. The company makes proprietary formulations, partnering with customers to deliver custom solutions. The nourish segment, which generates roughly half of revenue, is a leading flavor producer and also sell texturants, plant-based proteins, and other ingredients. The health and biosciences business, which generates around one fourth of revenue, is a global leader in probiotics and enzymes. IFF is also one of the leading fragrance producers in the world. The firm also sells pharmaceutical ingredients such as excipients and time-release polymers.
Executives
Clyburn Frank officer: Chief Executive Officer 2000 GALLOPING HILL ROAD KENILWORTH NJ 07033
Bruno Barry A. director 500 CHARLES EWING BLVD EWING NJ 08628
Richter Glenn R officer: CFO 3333 BEVERLY ROAD B6 277A HOFFMAN ESTATES IL 60179
Fauchon De Villeplee Christophe officer: President, Scent INTERNATIONAL FLAVORS & FRANGRANCES INC. 521 WEST 57TH STREET NEW YORK NY 10019
Johnson Jennifer Amy officer: EVP, General Counsel INTERNATIONAL FLAVORS & FRAGRANCES INC. 521 WEST 57TH STREET NEW YORK NY 10019
Strzelecki Angela officer: President, Pharma Solutions INTERNATIONAL FLAVORS & FRAGRANCES INC. 521 WEST 57TH STREET NEW YORK NY 10019
Herriott Simon officer: President Health & Biosciences INTERNATIONAL FLAVORS & FRAGRANCES INC. 521 WEST 57TH STREET NEW YORK NY 10019
Davidson Carol Anthony director
Heinzel Matthias director 974 CENTRE ROAD CRP 730 WILMINGTON DE 19805
Gordon Ilene S director C/O ARTHUR J. GALLAGHER & CO. TWO PIERCE PLACE ITASCA IL 60143
Schultz Kare director 5 BASEL STREET, PO BOX 3190 PETACH TIKVA L3 4951033
Boor Kathryn Jean director 3736 S. MAIN STREET MARION NY 14505
Breen Edward D director C/O TYCO INTERNATIONAL (US) INC 9 WEST 57TH ST 43RD FL. NEW YORK NY 10019
Fortmann Kathy Lynn officer: Divisional CEO, Taste INTERNATIONAL FLAVORS & FRAGRANCES INC. 521 WEST 57TH STREET NEW YORK NY 10019
Prast Peter 10 percent owner AEULESTRASSE5 VADUZ N2 9490

International Flavors & Fragrances Headlines

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