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Lowe's ROC (Joel Greenblatt) %

: 55.70% (As of Apr. 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. Lowe's's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2022 was 55.70%.

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

LOW' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 15.26   Med: 26.36   Max: 52.12
Current: 52.12

During the past 13 years, Lowe's's highest ROC (Joel Greenblatt) % was 52.12%. The lowest was 15.26%. And the median was 26.36%.

LOW's ROC (Joel Greenblatt) % is ranked better than
87.78% of 1113 companies
in the Retail - Cyclical industry
Industry Median: 11.69 vs LOW: 52.12

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


Lowe's ROC (Joel Greenblatt) % Historical Data

The historical data trend for Lowe's'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.

Lowe's Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
ROC (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.26 19.87 28.43 35.76 51.83

Lowe's Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
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 56.51 73.51 48.27 31.49 55.70

Competitive Comparison

For the Home Improvement Retail subindustry, Lowe's'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.

   

Lowe's ROC (Joel Greenblatt) % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Lowe's's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Lowe's 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: Jan. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 17605 + 1051) - (12646 + 1914 + 3604)
=492

Working Capital(Q: Apr. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 20239 + 1590) - (13831 + 2094 + 5146)
=758

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Lowe's for the quarter that ended in Apr. 2022 can be restated as:

ROC (Joel Greenblatt) %(Q: Apr. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2022  Q: Apr. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=13216/( ( (23179 + max(492, 0)) + (23021 + max(758, 0)) )/ 2 )
=13216/( ( 23671 + 23779 )/ 2 )
=13216/23725
=55.70 %

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


Lowe's  (NYSE:LOW) 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.


Lowe's ROC (Joel Greenblatt) % Related Terms

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


Lowe's Business Description

Lowe's logo
Address
1000 Lowe's Boulevard, Mooresville, NC, USA, 28117
Lowe's is the second- largest home improvement retailer in the world (behind wide-moat Home Depot), operating 1,971 stores and servicing 230 dealer-owned stores throughout the United States and Canada. The firm's stores offer products and services for home decorating, maintenance, repair, and remodeling. Lowe's targets retail do-it-yourself and do-it-for-me customers as well as commercial business clients. We estimate Lowe's captures a low-double-digit share of the $900 billion domestic home improvement market, based on Lowe's estimate for market size.
Executives
Taylor Colleen director C/O BILL.COM HOLDINGS, INC. 1800 EMBARCADERO ROAD PALO ALTO CA 94303
Sink Brandon J officer: EVP, Chief Financial Officer 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Stone West Mary E director C/O HASBRO, INC. 1011 NEWPORT AVENUE PAWTUCKET RI 02861
Heinrich Daniel J director CLOROX CO 1221 BROADWAY OAKLAND CA 94612
Griggs Dan Clayton Jr officer: Vice President, CAO 1000 LOWES BOULEVARD MOORESVILLE NC 28117
Little Janice Dupre officer: EVP Human Resources 1000 LOWES BOULEVARD MOORESVILLE NC 28117
Thalberg Marisa F officer: EVP Chief Brand & Mktg Officer 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Denton David M officer: EVP, Chief Financial Officer 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Godbole Seemantini officer: EVP, Chief Information Officer 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Mason Tiffany L officer: Interim CFO & SVP 440 S. CHURCH STREET SUITE 700 CHARLOTTE NC 28202
Boltz William P officer: EVP, Merchandising 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Mcfarland Joseph Michael officer: EVP, Stores 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Frieson Donald officer: EVP, Supply Chain 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Ellison Marvin R director, officer: President and CEO 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Rogers Brian C director T ROWE PRICE GROUP INC 100 E PRATT ST BALTIMORE MD 21202

Lowe's Headlines

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