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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. E2open Parent Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Nov. 2024 was -4,033.93%.
The historical rank and industry rank for E2open Parent Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
During the past 6 years, E2open Parent Holdings's highest ROC (Joel Greenblatt) % was -162.84%. The lowest was -1296.53%. And the median was -617.17%.
E2open Parent Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The historical data trend for E2open Parent Holdings'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.
E2open Parent Holdings Annual Data | |||||||||||||||
Trend | Feb19 | Feb20 | Feb21 | Feb22 | Feb23 | Feb24 | |||||||||
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial | -162.84 | - | -269.54 | -964.79 | -1,296.53 |
E2open Parent Holdings Quarterly Data | ||||||||||||||||||||
Feb19 | Jan20 | Jun20 | Sep20 | Dec20 | May21 | Aug21 | Nov21 | Feb22 | May22 | Aug22 | Nov22 | Feb23 | May23 | Aug23 | Nov23 | Feb24 | May24 | Aug24 | Nov24 | |
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial |
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-3,206.23 | -122.21 | -103.03 | -38.20 | -4,033.93 |
For the Software - Application subindustry, E2open Parent Holdings'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 Software industry and Technology sector, E2open Parent Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where E2open Parent Holdings'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: Aug. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (99.132 | + | 0 | + | 44.285) | - | (77.84 | + | 173.778 | + | 26.955) |
= | -135.156 |
Working Capital | (Q: Nov. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (122.342 | + | 0 | + | 42.634) | - | (72.13 | + | 190.175 | + | 26.931) |
= | -124.26 |
When net working capital is negative, 0 is used.
So ROC (Joel Greenblatt) % of E2open Parent Holdings for the quarter that ended in Nov. 2024 can be restated as:
ROC (Joel Greenblatt) % | (Q: Nov. 2024 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Aug. 2024 | Q: Nov. 2024 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | -1434.608 | / | ( ( (58.835 + max(-135.156, 0)) | + | (12.292 + max(-124.26, 0)) ) | / | 2 ) |
= | -1434.608 | / | ( ( 58.835 | + | 12.292 ) | / | 2 ) |
= | -1434.608 | / | 35.5635 | ||||
= | -4,033.93 % |
Note: The EBIT data used here is four times the quarterly (Nov. 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.
E2open Parent Holdings (NYSE:ETWO) 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 E2open Parent Holdings's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Andrew M Appel | director, officer: Interim CEO | C/O AON CORPORATE LAW DEPT, 200 EAST RANDOLPH ST, 8TH FL, CHICAGO IL 60601 |
Michael Farlekas | director, officer: Chief Executive Officer | 9600 GREAT HILLS TRAIL, SUITE 300E, AUSTIN TX 78759 |
Gregory Randolph | officer: Chief Commercial Officer | C/O E2OPEN PARENT HOLDINGS INC., 9600 GREAT HILLS TRAIL, SUITE 300E, AUSTIN TX 78759 |
Jennifer S Grafton | officer: General Counsel and Secretary | 9540 SOUTH MAROON CIRCLE, SUITE 200, ENGLEWOOD CO 80112 |
Peter Hantman | officer: Chief Operating Officer | C/O E2OPEN, INC., 4100 EAST THIRD AVENUE, SUITE 400, FOSTER CITY CA 94404 |
Marje Armstrong | officer: Chief Financial Officer | 9600 GREAT HILLS TRAIL, #300E, AUSTIN TX 78759 |
Eva F. Huston | director | 9 WEST 20TH STREET, 9TH FLOOR, NEW YORK NY 10011 |
Jarett Janik | officer: Chief Financial Officer | 9600 GREAT HILLS TRAIL, SUITE 300E, AUSTIN TX 78759 |
Elliott Investment Management L.p. | 10 percent owner | 360 S. ROSEMARY AVE, 18TH FLOOR, WEST PALM BEACH FL 33401 |
Chinh Chu | director | THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154 |
Neuberger Berman Group Llc | 10 percent owner, other: See remarks. | 1290 AVENUE OF THE AMERICAS, NEW YORK NY 10104 |
Deep Shah | director | 5 WILTON ROAD, 2ND FLOOR, LONDON X0 SW1V 1AN |
David Jeffrey Kenneson | officer: Sector President | 9600 GREAT HILLS TRAIL #300E, AUSTIN TX 78759 |
Martin Fichtner | director | 101 CALIFORNIA STREET, SUITE 3700, SAN FRANCISCO CA 94111 |
Ronald P Kubera | officer: Sector President | 9715 KEY WEST AVENUE, ROCKVILLE MD 20850 |
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