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Essential Properties Realty Trust (FRA:2OU) ROC (Joel Greenblatt) % : 340.15% (As of Mar. 2024)


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What is Essential Properties Realty Trust 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. Essential Properties Realty Trust's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 340.15%.

The historical rank and industry rank for Essential Properties Realty Trust's ROC (Joel Greenblatt) % or its related term are showing as below:

FRA:2OU' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 210.89   Med: 331.37   Max: 433.98
Current: 401.94

During the past 8 years, Essential Properties Realty Trust's highest ROC (Joel Greenblatt) % was 433.98%. The lowest was 210.89%. And the median was 331.37%.

FRA:2OU's ROC (Joel Greenblatt) % is ranked better than
67.37% of 567 companies
in the REITs industry
Industry Median: 107.06 vs FRA:2OU: 401.94

Essential Properties Realty Trust's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 6.20% per year.


Essential Properties Realty Trust ROC (Joel Greenblatt) % Historical Data

The historical data trend for Essential Properties Realty Trust'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.

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Essential Properties Realty Trust ROC (Joel Greenblatt) % Chart

Essential Properties Realty Trust Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial 388.29 207.58 345.20 445.75 386.43

Essential Properties Realty Trust Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 454.46 516.63 410.47 359.76 340.15

Competitive Comparison of Essential Properties Realty Trust's ROC (Joel Greenblatt) %

For the REIT - Diversified subindustry, Essential Properties Realty Trust'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.


Essential Properties Realty Trust's ROC (Joel Greenblatt) % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Essential Properties Realty Trust's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Essential Properties Realty Trust's ROC (Joel Greenblatt) % falls into.



Essential Properties Realty Trust 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)
=(128.568 + 6.836 + 8.396) - (71.92 + 0 + 0)
=71.88

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(133.051 + 1.136 + 0.0029999999999859) - (69.951 + 0 + 0.069999999999993)
=64.169

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Essential Properties Realty Trust for the quarter that ended in Mar. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=231.384/( ( (0 + max(71.88, 0)) + (0 + max(64.169, 0)) )/ 2 )
=231.384/( ( 71.88 + 64.169 )/ 2 )
=231.384/68.0245
=340.15 %

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


Essential Properties Realty Trust  (FRA:2OU) 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.


Essential Properties Realty Trust ROC (Joel Greenblatt) % Related Terms

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Essential Properties Realty Trust (FRA:2OU) Business Description

Traded in Other Exchanges
Address
902 Carnegie Center Boulevard, Suite 520, Princeton, NJ, USA, 08540
Essential Properties Realty Trust Inc is a real estate investment trust. It acquires, owns and manages single-tenant properties that are net leased on a long-term basis to middle-market companies operating service-oriented or experience-based businesses.

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