GURUFOCUS.COM » STOCK LIST » USA » OTCPK » Compagnie Financiere Richemont SA (OTCPK:CFRHF) » Definitions » ROC (Joel Greenblatt) %
Switch to:

Compagnie Financiere Richemont ROC (Joel Greenblatt) %

: 19.16% (As of Mar. 2022)
View and export this data going back to 2008. Start your Free Trial

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. Compagnie Financiere Richemont's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2022 was 19.16%.

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

CFRHF' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 14.79   Med: 27.55   Max: 51.11
Current: 25.65

During the past 13 years, Compagnie Financiere Richemont's highest ROC (Joel Greenblatt) % was 51.11%. The lowest was 14.79%. And the median was 27.55%.

CFRHF's ROC (Joel Greenblatt) % is ranked better than
71.2% of 1111 companies
in the Retail - Cyclical industry
Industry Median: 11.63 vs CFRHF: 25.65

Compagnie Financiere Richemont's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -7.90% per year.


Compagnie Financiere Richemont ROC (Joel Greenblatt) % Historical Data

The historical data trend for Compagnie Financiere Richemont'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.

Compagnie Financiere Richemont Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
ROC (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.08 48.18 15.04 16.48 25.19

Compagnie Financiere Richemont Semi-Annual Data
Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22
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 2.48 8.39 23.63 31.67 19.16

Competitive Comparison

For the Luxury Goods subindustry, Compagnie Financiere Richemont'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.

   

Compagnie Financiere Richemont ROC (Joel Greenblatt) % Distribution

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

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



Compagnie Financiere Richemont 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: Sep. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1842.3529411765 + 7968.2352941176 + 88.235294117647) - (3630.5882352941 + 0 + 415.29411764706)
=5852.9411764706

Working Capital(Q: Mar. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(807.26872246696 + 7818.281938326 + 1148.6784140969) - (3064.9779735683 + 0 + 1946.0352422907)
=4763.2158590308

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Compagnie Financiere Richemont for the quarter that ended in Mar. 2022 can be restated as:

ROC (Joel Greenblatt) %(Q: Mar. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2021  Q: Mar. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2385.4625550661/( ( (7025.8823529412 + max(5852.9411764706, 0)) + (7257.7092511013 + max(4763.2158590308, 0)) )/ 2 )
=2385.4625550661/( ( 12878.823529412 + 12020.925110132 )/ 2 )
=2385.4625550661/12449.874319772
=19.16 %

Note: The EBIT data used here is two times the semi-annual (Mar. 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.


Compagnie Financiere Richemont  (OTCPK:CFRHF) 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.


Compagnie Financiere Richemont ROC (Joel Greenblatt) % Related Terms

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


Compagnie Financiere Richemont Business Description

Compagnie Financiere Richemont logo
Address
50, Chemin de la Chenaie, CP 30, Bellevue, Geneva, CHE, 1293
Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up over 70% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 56% of revenue and over 95% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc. Online businesses include Yoox Net-a-Porter.

Compagnie Financiere Richemont Headlines

Other Sources

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)