>
Switch to:

Raytheon Technologies ROC (Joel Greenblatt) %

: 42.77% (As of Jun. 2021)
View and export this data going back to 1951. 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. Raytheon Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2021 was 42.77%.

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

NYSE:RTX' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -4.78   Med: 80.51   Max: 108.9
Current: 26.2

-4.78
108.9

During the past 13 years, Raytheon Technologies's highest ROC (Joel Greenblatt) % was 108.90%. The lowest was -4.78%. And the median was 80.51%.

NYSE:RTX's ROC (Joel Greenblatt) % is ranked higher than
92% of the 99 Companies
in the Aerospace & Defense industry.

( Industry Median: 13.90 vs. NYSE:RTX: 26.20 )

Raytheon Technologies's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


Raytheon Technologies ROC (Joel Greenblatt) % Historical Data

The historical data trend for Raytheon Technologies'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.

Raytheon Technologies Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROC (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 84.71 76.30 30.14 33.50 -4.78

Raytheon Technologies Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 -87.76 16.47 9.62 36.18 42.77

Competitive Comparison

For the Aerospace & Defense subindustry, Raytheon Technologies'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.

   

Raytheon Technologies ROC (Joel Greenblatt) % Distribution

For the Aerospace & Defense industry and Industrials sector, Raytheon Technologies's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Raytheon Technologies 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: Mar. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(10037 + 9498 + 4200) - (19366 + 12879 + 2511)
=-11021

Working Capital(Q: Jun. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(8912 + 9548 + 3883) - (18404 + 12591 + 2233)
=-10885

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Raytheon Technologies for the quarter that ended in Jun. 2021 can be restated as:

ROC (Joel Greenblatt) %(Q: Jun. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2021  Q: Jun. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=7104/( ( (16655 + max(-11021, 0)) + (16565 + max(-10885, 0)) )/ 2 )
=7104/( ( 16655 + 16565 )/ 2 )
=7104/16610
=42.77 %

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


Raytheon Technologies  (NYSE:RTX) 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.


Raytheon Technologies ROC (Joel Greenblatt) % Related Terms

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


Raytheon Technologies Business Description

Raytheon Technologies logo
Industry
Industrials » Aerospace & Defense NAICS : 336413 SIC : 3728
Address
870 Winter Street, Waltham, MA, USA, 02451
Raytheon Technologies is a diversified aerospace and defense industrial company formed from the merger of United Technologies and Raytheon, with roughly equal exposure as a supplier to the commercial aerospace manufactures and to the defense market as a prime and subprime contractor. The company operates in four segments: Pratt & Whitney, an engine manufacturer, Collins Aerospace, which is a diversified aerospace supplier, and intelligence, space and airborne systems, a mix between a sensors business and a government IT contractor, and integrated defense and missile systems, a defense prime contractor focusing on missiles and missile defense hardware.
Executives
Ortberg Robert Kelly director, officer: Special Advisor to Off of CEO 870 WINTER STREET WALTHAM MA 02451
Timm Stephen J. officer: President, Collins Aerospace 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Dumais Michael R officer: EVP, Operations & Strategy UNITED TECHNOLOGIES CORPORATION 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Hayes Gregory director, officer: President and CEO 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Azevedo Roy officer: President, RIS 870 WINTER STREET WALTHAM MA 02451
Kremer Wesley D officer: President, RMD 870 WINTER STREET WALTHAM MA 02451
Kennedy Thomas A director, officer: Executive Chairman 870 WINTER STREET WALTHAM MA 02451
Winnefeld James A Jr director 870 WINTER STREET WALTHAM MA 02451
Williams Dantaya M officer: Chief Human Resources Officer 870 WINTER STREET WALTHAM MA 02451
Larsen Marshall O director 870 WINTER STREET WALTHAM MA 02451
Ramos Denise L director 870 WINTER STREET WALTHAM MA 02451
Paliwal Dinesh C director 5454 W 110TH STREET OVERLAND PARK KS 66211
Oliver George director 5757 N. GREEN BAY AVENUE MILWAUKEE WI 53209
Austin Lloyd J. Iii director 870 WINTER STREET WALTHAM MA 02451
Atkinson Tracy A director MFS INVESTMENT MANAGEMENT 500 BOYLSTON ST. BOSTON MA 02116

Raytheon Technologies Headlines

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)