Zoom Video Communications (NAS:ZM) ROC (Joel Greenblatt) %

: 209.93% (As of Jul. 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. Zoom Video Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2023 was 209.93%.

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

ZM' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -37.09 Med: 49.9 Max: 375.9
Current: 36.9

During the past 7 years, Zoom Video Communications's highest ROC (Joel Greenblatt) % was 375.90%. The lowest was -37.09%. And the median was 49.90%.

ZM's ROC (Joel Greenblatt) % is ranked better than
62.32% of 2779 companies
in the Software industry
Industry Median: 11.20 vs ZM: 36.90

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

Zoom Video Communications ROC (Joel Greenblatt) % Historical Data

The historical data trend for Zoom Video Communications'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.

Zoom Video Communications Annual Data

Trend

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

ROC (Joel Greenblatt) %

24.52

15.58

353.50

375.90

75.28

Zoom Video Communications Quarterly Data
	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23
ROC (Joel Greenblatt) %																147.52	79.48	-153.81	11.73	209.93

Competitive Comparison

For the Software - Application subindustry, Zoom Video Communications'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.

Annual Data Quarterly Data

Zoom Video Communications ROC (Joel Greenblatt) % Distribution

For the Software industry and Technology sector, Zoom Video Communications's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Zoom Video Communications's ROC (Joel Greenblatt) % falls in comparison to its industry or sector. The grey bar indicates the ROC (Joel Greenblatt) %'s extreme value range as defined by GuruFocus.

Zoom Video Communications 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: Apr. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(590.694	+	0	+	363.448)	-	(293.788	+	1369.353	+	158.093)
=	-867.092

	Working Capital		(Q: Jul. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(571.049	+	0	+	435.002)	-	(223.927	+	1384.587	+	135.447)
=	-737.91

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Zoom Video Communications for the quarter that ended in Jul. 2023 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Jul. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Apr. 2023		Q: Jul. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	710.472	/	( ( (330.743 + max(-867.092, 0))	+	(346.13 + max(-737.91, 0)) )	/	2 )
=	710.472	/	( ( 330.743	+	346.13 )	/	2 )
=	710.472	/	338.4365
=	209.93 %

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

Zoom Video Communications (NAS:ZM) 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.

Zoom Video Communications ROC (Joel Greenblatt) % Related Terms

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

Zoom Video Communications (NAS:ZM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Zoom Video Communications Inc (NAS:ZM) » Definitions » ROC (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

ZM:Mexico 5ZM:Germany Z1OM34:Brazil ZOOM:Austria

Address

55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113

Website

https://www.zoom.com

Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

Executives

Cindy L Hoots	director	C/O ZOOM VIDEO COMMUNICATIONS, INC, 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Gregory Tomb	officer: President	650 CASTRO ST, SUITE 400, MOUNTAIN VIEW CA 94041
William R Mcdermott	director	2225 LAWSON LANE, SANTA CLARA CA 95054
Santiago Subotovsky	director	C/O EMERGENCE CAPITAL PARTNERS, 160 BOVENT ROAD SUITE 300, SAN MATEO CA 94402
Janet Napolitano	director	C/O VIR BIOTECHNOLOGY, INC., 499 ILLINOIS STREET, SUITE 500, SAN FRANCISCO CA 94158
Shane Crehan	officer: Chief Accounting Officer	C/O EVENTBRITE, INC., 155 5TH STREET, 7TH FLOOR, SAN FRANCISCO CA 94103
Velchamy Sankarlingam	officer: Pres. of Engineering & Product	C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Herbert Raymond Mcmaster	director	C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Michael Saul Abramson	10 percent owner	C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Douglas M Leone	10 percent owner	C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Ryan Azus	officer: Chief Revenue Officer	C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Bonus Goal International Ltd	10 percent owner	C/O 7/F, CHEUNG KONG CENTER, 2 QUEEN'S ROAD CENTRAL, HONG KONG K3 00000
Salesforce Com Inc	10 percent owner	SALESFORCE TOWER, 415 MISSION STREET 3RD FL, SAN FRANCISCO CA 94105
Sequoia Capital Global Growth Ii Principals Fund, L.p.	10 percent owner	2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Qualcomm Inc/de	10 percent owner	5775 MOREHOUSE DR, SAN DIEGO CA 92121