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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. Dell Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2025 was 136.40%.
The historical rank and industry rank for Dell Technologies's ROC (Joel Greenblatt) % or its related term are showing as below:
During the past 11 years, Dell Technologies's highest ROC (Joel Greenblatt) % was 145.69%. The lowest was -73.90%. And the median was 52.63%.
Dell Technologies's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 15.40% per year.
The historical data trend for Dell 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.
Dell Technologies Annual Data | |||||||||||||||||||||
Trend | Jan16 | Jan17 | Jan18 | Jan19 | Jan20 | Jan21 | Jan22 | Jan23 | Jan24 | Jan25 | |||||||||||
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial |
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69.43 | 145.69 | 77.53 | 85.94 | 97.70 |
Dell Technologies Quarterly Data | ||||||||||||||||||||
Apr20 | Jul20 | Oct20 | Jan21 | Apr21 | Jul21 | Oct21 | Jan22 | Apr22 | Jul22 | Oct22 | Jan23 | Apr23 | Jul23 | Oct23 | Jan24 | Apr24 | Jul24 | Oct24 | Jan25 | |
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial |
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99.48 | 57.21 | 87.80 | 108.97 | 136.40 |
For the Computer Hardware subindustry, Dell 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.
For the Hardware industry and Technology sector, Dell Technologies's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Dell Technologies's ROC (Joel Greenblatt) % falls into.
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: Oct. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (11189 | + | 6652 | + | 9968) | - | (29890 | + | 13787 | + | 211) |
= | -16079 |
Working Capital | (Q: Jan. 2025 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (10298 | + | 6716 | + | 10278) | - | (27429 | + | 13673 | + | 221) |
= | -14031 |
When net working capital is negative, 0 is used.
So ROC (Joel Greenblatt) % of Dell Technologies for the quarter that ended in Jan. 2025 can be restated as:
ROC (Joel Greenblatt) % | (Q: Jan. 2025 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Oct. 2024 | Q: Jan. 2025 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | 8636 | / | ( ( (6327 + max(-16079, 0)) | + | (6336 + max(-14031, 0)) ) | / | 2 ) |
= | 8636 | / | ( ( 6327 | + | 6336 ) | / | 2 ) |
= | 8636 | / | 6331.5 | ||||
= | 136.40 % |
Note: The EBIT data used here is four times the quarterly (Jan. 2025) 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.
Dell Technologies (NYSE:DELL) 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.
Thank you for viewing the detailed overview of Dell Technologies's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Radakovich Lynn Vojvodich | director | C/O BOOKING HOLDINGS INC., 800 CONNECTICUT AVENUE, NORWALK CT 06854 |
Slta Iv (gp), L.l.c. | director | C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025 |
Slta V (gp), L.l.c. | director, 10 percent owner | C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025 |
Silver Lake Group, L.l.c. | director | 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025 |
Yvonne Mcgill | officer: Chief Financial Officer | ONE DELL WAY, ROUND ROCK TX 78682 |
Michael S Dell | director, 10 percent owner, officer: Chief Executive Officer | C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244 |
William F Scannell | officer: Pres., Glob. Sales & Cust. Ops | EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748 |
David W Dorman | director | CVS HEALTH., ONE CVS DRIVE, WOONSOCKET RI 02895 |
Richard J Rothberg | officer: General Counsel & Secretary | ONE DELL WAY, ROUND ROCK TX 78682 |
Jennifer D. Saavedra | officer: Chief Human Resources Officer | C/O DELL TECHNOLOGIES INC., ONE DELL WAY, ROUND ROCK TX 78682 |
Steven M Mollenkopf | director | 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121 |
Anthony Charles Whitten | officer: Co-Chief Operating Officer | C/O DELL TECHNOLOGIES INC., ONE DELL WAY, ROUND ROCK TX 78682 |
Allison Dew | officer: Chief Marketing Officer | C/O DELL TECHNOLOGIES INC., ONE DELL WAY, ROUND ROCK TX 78682 |
Brunilda Rios | officer: Chief Accounting Officer | C/O DELL TECHNOLOGIES INC., ONE DELL WAY, ROUND ROCK TX 78682 |
Thomas W Sweet | officer: Chief Financial Officer | ONE DELL WAY, ROUND ROCK TX 78682 |
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