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RH ROC (Joel Greenblatt) %

: 11.97% (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. RH's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2022 was 11.97%.

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

RH' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -22.29   Med: 20.72   Max: 48.99
Current: 39.51

During the past 13 years, RH's highest ROC (Joel Greenblatt) % was 48.99%. The lowest was -22.29%. And the median was 20.72%.

RH's ROC (Joel Greenblatt) % is ranked better than
81.55% of 1111 companies
in the Retail - Cyclical industry
Industry Median: 11.72 vs RH: 39.51

RH's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 55.90% per year.


RH ROC (Joel Greenblatt) % Historical Data

The historical data trend for RH'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.

RH 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 7.16 18.73 23.08 27.52 48.99

RH 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 43.20 53.04 52.84 42.18 11.97

Competitive Comparison

For the Specialty Retail subindustry, RH'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.

   

RH ROC (Joel Greenblatt) % Distribution

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

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



RH 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)
=(57.914 + 734.289 + 97.594) - (376.884 + 410.645 + 140.27)
=-38.002

Working Capital(Q: Apr. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(65.602 + 817.327 + 106.435) - (374.478 + 462.002 + 97.178)
=55.706

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of RH 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 )
=242.784/( ( (1982.978 + max(-38.002, 0)) + (2017.838 + max(55.706, 0)) )/ 2 )
=242.784/( ( 1982.978 + 2073.544 )/ 2 )
=242.784/2028.261
=11.97 %

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.


RH  (NYSE:RH) 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.


RH ROC (Joel Greenblatt) % Related Terms

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


RH Business Description

RH logo
Address
15 Koch Road, Suite K, Corte Madera, CA, USA, 94925
RH is a luxury retailer operating in the $112 billion furniture and home furnishing industry. The company offers merchandise across many categories including furniture, lighting, textiles, bath, decor, children, and more and is growing the presence of its hospitality business (with 12 restaurant locations). RH innovates, curates, and integrates products, categories, services, and businesses across channels and brand extensions (RH Teen, RH Modern, and Waterworks, for example). The company is fully integrated across store, Web, and catalog channels, and is positioned to broaden its total addressable market over the next decade with the launch of its World of RH digital platform in 2022, along with future offerings in contemporary, antique, bespoke furniture, couture upholstery, and more.
Executives
Preston Jack M officer: CHIEF FINANCIAL OFFICER 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Lee Edward T officer: SEE REMARKS C/O RH, 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Hargarten Christina officer: See Remarks 15 KOCH ROAD SUITE K CORTE MADERA CA 94925
Citragno Glenda M officer: Chief Accounting Officer 15 KOCH ROAD CORTE MADERA CA 94925
Blignaut Ryno officer: See Remarks C/O XOOM CORPORATION 100 BUSH STREET, SUITE 300 SAN FRANCISCO CA 94104
Stanchak David officer: See Remarks C/O RH, 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Stangl Sandra officer: See Remarks 3250 VAN NESS AVENUE SAN FRANCISCO CA 94109
Krane Hilary K director ONE BOWERMAN DRIVE BEAVERTON OR 97005
Belling Keith director C/O RESTORATION HARDWARE HOLDINGS, INC. 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Mitic Kathleen C. director C/O EBAY INC. 2065 HAMILTON AVENUE SAN JOSE CA 95125
Rowghani Ali director 101 SECOND STREET SUITE 1400 SAN FRANCISCO CA 94105
Schlesinger Leonard A director THREE LIMITED PARKWAY COLUMBUS OH 43230
Price Demonty officer: Please See Remarks C/O RESTORATION HARDWARE HOLDINGS, INC. 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Chaya Eri officer: See Remarks 1981 14TH AVE SAN FRANCISCO CA 94116
Boone Karen officer: See Remarks 15 KOCH ROAD SUITE J CORTE MADERA CA 94925

RH Headlines

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