United Microelectronics (TPE:2303) ROC (Joel Greenblatt) %

: 24.09% (As of Dec. 2023)

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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. United Microelectronics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 24.09%.

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

TPE:2303' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.45 Med: 8.13 Max: 64.88
Current: 31.66

During the past 13 years, United Microelectronics's highest ROC (Joel Greenblatt) % was 64.88%. The lowest was 2.45%. And the median was 8.13%.

TPE:2303's ROC (Joel Greenblatt) % is ranked better than
78.43% of 992 companies
in the Semiconductors industry
Industry Median: 8.58 vs TPE:2303: 31.66

United Microelectronics's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 87.00% per year.

United Microelectronics ROC (Joel Greenblatt) % Historical Data

The historical data trend for United Microelectronics'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.

United Microelectronics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC (Joel Greenblatt) %

4.40

16.37

42.14

64.88

32.25

United Microelectronics Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC (Joel Greenblatt) %																61.31	37.38	33.81	32.06	24.09

Competitive Comparison

For the Semiconductors subindustry, United Microelectronics'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.

United Microelectronics ROC (Joel Greenblatt) % Distribution

For the Semiconductors industry and Technology sector, United Microelectronics's ROC (Joel Greenblatt) % distribution charts can be found below:

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

United Microelectronics 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. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(31104.501	+	36560.576	+	2928.97)	-	(53107.58	+	3127.957	+	5237.08)
=	9121.43

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(29585.514	+	35712.558	+	3040.597)	-	(59050.746	+	3250.712	+	22668.951)
=	-16631.74

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of United Microelectronics for the quarter that ended in Dec. 2023 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	60252.248	/	( ( (240202.89 + max(9121.43, 0))	+	(250849.186 + max(-16631.74, 0)) )	/	2 )
=	60252.248	/	( ( 249324.32	+	250849.186 )	/	2 )
=	60252.248	/	250086.753
=	24.09 %

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

United Microelectronics (TPE:2303) 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.

United Microelectronics ROC (Joel Greenblatt) % Related Terms

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United Microelectronics (TPE:2303) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » United Microelectronics Corp (TPE:2303) » Definitions » ROC (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

UMC:USA UMC:Mexico UMCB:Germany

Address

No. 3, Li-Hsin 2nd Road, Hsinchu Science Park, Hsinchu, TWN

Website

https://www.umc.com

Founded in 1980, United Microelectronics is the world's third-largest dedicated chip foundry, with 7% market share in 2022 after TSMC and GlobalFoundries. UMC's headquarters are in Hsinchu, Taiwan, and it operates 12 fabs in Taiwan, Mainland China, Japan and Singapore, with additional sales offices in Europe, the U.S. and South Korea. UMC features a diverse customer base including Texas Instruments, MediaTek, Qualcomm, Broadcom, Xilinx and Realtek, supplying a wide range of products applied in communications, display, memory, automotive and more. UMC employs about 20,000 people.

United Microelectronics (TPE:2303) Headlines

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