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IHS Markit ROC (Joel Greenblatt) %

: 84.74% (As of Aug. 2021)
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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. IHS Markit's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2021 was 84.74%.

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

NYSE:INFO' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 71.64   Med: 114.07   Max: 162
Current: 80.71

71.64
162

During the past 13 years, IHS Markit's highest ROC (Joel Greenblatt) % was 162.00%. The lowest was 71.64%. And the median was 114.07%.

NYSE:INFO's ROC (Joel Greenblatt) % is ranked higher than
88% of the 325 Companies
in the Business Services industry.

( Industry Median: 5.05 vs. NYSE:INFO: 80.71 )

IHS Markit's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 11.90% per year.


IHS Markit ROC (Joel Greenblatt) % Historical Data

The historical data trend for IHS Markit'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.

IHS Markit Annual Data
Trend Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20
ROC (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 71.64 111.11 117.02 162.00 133.34

IHS Markit Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
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 100.92 67.33 83.18 89.87 84.74

Competitive Comparison

For the Consulting Services subindustry, IHS Markit'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.

   

IHS Markit ROC (Joel Greenblatt) % Distribution

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

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



IHS Markit 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. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(870.9 + 0 + 1094.5) - (443.3 + 1009.5 + 246.7)
=265.9

Working Capital(Q: Aug. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(857.8 + 0 + 1463.3) - (480.7 + 939.7 + 336.2)
=564.5

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of IHS Markit for the quarter that ended in Aug. 2021 can be restated as:

ROC (Joel Greenblatt) %(Q: Aug. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: May. 2021  Q: Aug. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1163.6/( ( (963.1 + max(265.9, 0)) + (952.8 + max(564.5, 0)) )/ 2 )
=1163.6/( ( 1229 + 1517.3 )/ 2 )
=1163.6/1373.15
=84.74 %

Note: The EBIT data used here is four times the quarterly (Aug. 2021) 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.


IHS Markit  (NYSE:INFO) 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.


IHS Markit ROC (Joel Greenblatt) % Related Terms

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


IHS Markit Business Description

IHS Markit logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.

IHS Markit Headlines

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