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Aussie Broadband (ASX:ABB) ROC (Joel Greenblatt) % : 40.99% (As of Jun. 2024)


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What is Aussie Broadband 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. Aussie Broadband's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 40.99%.

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

ASX:ABB' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -7.99   Med: 23.31   Max: 33.39
Current: 33.39

During the past 5 years, Aussie Broadband's highest ROC (Joel Greenblatt) % was 33.39%. The lowest was -7.99%. And the median was 23.31%.

ASX:ABB's ROC (Joel Greenblatt) % is ranked better than
80% of 375 companies
in the Telecommunication Services industry
Industry Median: 13.85 vs ASX:ABB: 33.39

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


Aussie Broadband ROC (Joel Greenblatt) % Historical Data

The historical data trend for Aussie Broadband'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.

Aussie Broadband ROC (Joel Greenblatt) % Chart

Aussie Broadband Annual Data
Trend Jun20 Jun21 Jun22 Jun23 Jun24
ROC (Joel Greenblatt) %
- -7.99 16.05 30.57 32.25

Aussie Broadband Semi-Annual Data
Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only 20.72 28.76 33.02 26.24 40.99

Competitive Comparison of Aussie Broadband's ROC (Joel Greenblatt) %

For the Telecom Services subindustry, Aussie Broadband'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.


Aussie Broadband's ROC (Joel Greenblatt) % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Aussie Broadband's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Aussie Broadband 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: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(76.514 + 5.432 + 0) - (98.994 + 9.105 + 48.743)
=-74.896

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(80.306 + 6.319 + 27.623) - (153.5 + 80.082 + 18.965)
=-138.299

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Aussie Broadband for the quarter that ended in Jun. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Jun. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Jun. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=67.21/( ( (147.502 + max(-74.896, 0)) + (180.446 + max(-138.299, 0)) )/ 2 )
=67.21/( ( 147.502 + 180.446 )/ 2 )
=67.21/163.974
=40.99 %

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


Aussie Broadband  (ASX:ABB) 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.


Aussie Broadband ROC (Joel Greenblatt) % Related Terms

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Aussie Broadband Business Description

Traded in Other Exchanges
N/A
Address
3 Electra Avenue, Morwell, VIC, AUS, 3840
Aussie Broadband Ltd is a telecommunications and technology services company in Australia, providing services for Residential, Business, Wholesale, and Enterprise & Government customers.. It provides NBN subscription plans and bundles to residential homes, small businesses, not-for-profits, corporate/enterprise, and managed service providers. It is organized into four operating segments: Residential, Business, Wholesale, and Enterprise and Government. The Residential segment is the main revenue driver for the group. Residential segment provides telecommunications services to residential users. The company services all states and territories in Australia.

Aussie Broadband Headlines

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