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. Azure Power Global's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 5.65%.
The historical rank and industry rank for Azure Power Global's ROC (Joel Greenblatt) % or its related term are showing as below:
AZREF's ROC (Joel Greenblatt) % is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 6.58 * Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
Azure Power Global's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Azure Power Global (OTCPK:AZREF) 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.
Azure Power Global ROC (Joel Greenblatt) % Related Terms
Azure Power Global ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Azure Power Global'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.
AZREF vs SAFX, VGAS, STEM: ROC (Joel Greenblatt) % Comparison
For the Utilities - Renewable subindustry, Azure Power Global'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.
Azure Power Global ROC (Joel Greenblatt) % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Azure Power Global's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Azure Power Global's ROC (Joel Greenblatt) % falls into.
Azure Power Global 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:
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.
Note:
The EBIT data used here is one times the annual (Mar. 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.
What does a ROC (Joel Greenblatt) % of 5.65% mean?
Azure Power Global (AZREF) has a ROC (Joel Greenblatt) % of 5.65% as of Mar. 2024. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Azure Power Global and its competitors.
Is Azure Power Global's ROC (Joel Greenblatt) % too high?
Azure Power Global's current ROC (Joel Greenblatt) % is 5.65%. The Utilities - Independent Power Producers industry median ROC (Joel Greenblatt) % is 6.58. Azure Power Global's value of 5.65% is 14.1% below this industry median. Overall, Azure Power Global has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Azure Power Global's ROC (Joel Greenblatt) % compare to SAFX and VGAS?
Azure Power Global's ROC (Joel Greenblatt) % of 5.65% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROC (Joel Greenblatt) % is 6.58. Azure Power Global's value of 5.65% is 14.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC (Joel Greenblatt) % for an Utilities - Independent Power Producers company?
The median ROC (Joel Greenblatt) % among Utilities - Independent Power Producers companies is 6.58, based on 435 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Azure Power Global's current ROC (Joel Greenblatt) % of 5.65% is 14.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Azure Power Global and its competitors. For the Utilities - Independent Power Producers industry, the median ROC (Joel Greenblatt) % is 6.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azure Power Global's current ROC (Joel Greenblatt) % is 5.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azure Power Global stock overvalued right now?
Azure Power Global (AZREF) has a current ROC (Joel Greenblatt) % of 5.65%. The current ROC (Joel Greenblatt) % is 5.65% and 14.1% below the Utilities - Independent Power Producers industry median of 6.58. Azure Power Global's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Azure Power Global (AZREF), the current ROC (Joel Greenblatt) % is 5.65% as of Mar. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Azure Power Global Ltd is a utility-scale renewable energy project developer and operator. It is engaged in the development, construction, ownership, operation, maintenance, and management of renewable energy assets based on long-term contracts (Power Purchase Agreements or PPA) with Indian Government energy distribution companies, as well as other Indian non-governmental energy distribution companies and commercial customers.
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