GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » RPM International Inc (NYSE:RPM) » Definitions » ROC (Joel Greenblatt) %

RPM International (RPM International) ROC (Joel Greenblatt) % : 15.20% (As of Feb. 2024)


View and export this data going back to 1990. Start your Free Trial

What is RPM International ROC (Joel Greenblatt) %?

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. RPM International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2024 was 15.20%.

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

RPM' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 20.62   Med: 26.51   Max: 41.39
Current: 28.25

During the past 13 years, RPM International's highest ROC (Joel Greenblatt) % was 41.39%. The lowest was 20.62%. And the median was 26.51%.

RPM's ROC (Joel Greenblatt) % is ranked better than
83.21% of 1560 companies
in the Chemicals industry
Industry Median: 10.03 vs RPM: 28.25

RPM International's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 1.10% per year.


RPM International ROC (Joel Greenblatt) % Historical Data

The historical data trend for RPM International'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.

RPM International ROC (Joel Greenblatt) % Chart

RPM International Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.41 22.92 31.52 25.64 24.89

RPM International Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
ROC (Joel Greenblatt) % Get a 7-Day Free Trial 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 9.04 29.63 37.59 29.35 15.20

Competitive Comparison of RPM International's ROC (Joel Greenblatt) %

For the Specialty Chemicals subindustry, RPM International'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.


RPM International's ROC (Joel Greenblatt) % Distribution in the Chemicals Industry

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

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



RPM International 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: Nov. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1233.34 + 1102.815 + 320.106) - (1043.886 + 0 + 204.921)
=1407.454

Working Capital(Q: Feb. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1072.032 + 1080.698 + 344.948) - (957.773 + 0 + 237.951)
=1301.954

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of RPM International for the quarter that ended in Feb. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Feb. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Nov. 2023  Q: Feb. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=448.432/( ( (1577.383 + max(1407.454, 0)) + (1613.879 + max(1301.954, 0)) )/ 2 )
=448.432/( ( 2984.837 + 2915.833 )/ 2 )
=448.432/2950.335
=15.20 %

Note: The EBIT data used here is four times the quarterly (Feb. 2024) 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.


RPM International  (NYSE:RPM) 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.


RPM International ROC (Joel Greenblatt) % Related Terms

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


RPM International (RPM International) Business Description

Traded in Other Exchanges
Address
2628 Pearl Road, P.O. Box 777, Medina, OH, USA, 44256
RPM International Inc manufactures and sells a variety of paints, coatings, and adhesives. The firm organizes itself into four segments based on product type. The construction products group sells coatings, roofing, insulation, and other products to distributers, contractors, and end consumers globally. The performance coatings group produces coatings that are used in construction and industrial applications like floorings and corrosion control. The consumer group sells paint, finishes, and similar products to individual consumers through hardware and craft stores. The specialty products group sells a variety of products ranging from niche applications of the other groups, to marine finishes, to edible food colorings. The majority of revenue comes from North America.
Executives
Timothy R. Kinser officer: VP-Operations 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Frederick R. Nance director 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Frank C Sullivan director, officer: President and CEO
Michael J. Laroche officer: VP, Controller & CAO 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Edward W. Moore officer: VP, Gen. Counsel & Secretary 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Matthew T Ratajczak officer: VP-Global Tax and Treasurer 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Russell L Gordon officer: VP and CFO 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Ellen M Pawlikowski director 870 WINTER STREET, WALTHAM MA 02451
Elizabeth F Whited director 1400 DOUGLAS ST, OMAHA NE 68179
Thomas Gross director DANAHER CORP, 2099 PENNSYLVANIA AVE NW 12TH FL, WASHINGTON DC 20006
David A. Daberko director C/O MARATHON PETROLEUM CORPORATION, 539 S. MAIN STREET, FINDLAY OH 45840
Michael Hobart Sullivan officer: VP, Operations and CRO 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
John M Ballbach director
Kirkland B Andrews director C/O EVERGY, INC., 1200 MAIN STREET, KANSAS CITY MO 64105
Robert Livingston director C/O DOVER CORPORATION, 3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515

RPM International (RPM International) Headlines