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RS Group (FRA:ECN) ROC (Joel Greenblatt) % : 27.23% (As of Sep. 2024)


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What is RS Group 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. RS Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 27.23%.

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

FRA:ECN' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 11.16   Med: 36.17   Max: 49.44
Current: 28.48

During the past 13 years, RS Group's highest ROC (Joel Greenblatt) % was 49.44%. The lowest was 11.16%. And the median was 36.17%.

FRA:ECN's ROC (Joel Greenblatt) % is ranked better than
75.48% of 155 companies
in the Industrial Distribution industry
Industry Median: 16.77 vs FRA:ECN: 28.48

RS Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -1.50% per year.


RS Group ROC (Joel Greenblatt) % Historical Data

The historical data trend for RS Group'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.

RS Group ROC (Joel Greenblatt) % Chart

RS Group Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 36.23 27.16 47.02 48.21 31.67

RS Group Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 49.08 47.83 32.16 29.48 27.23

Competitive Comparison of RS Group's ROC (Joel Greenblatt) %

For the Industrial Distribution subindustry, RS Group'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.


RS Group's ROC (Joel Greenblatt) % Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, RS Group's ROC (Joel Greenblatt) % distribution charts can be found below:

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



RS Group 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: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(716.478 + 766.861 + 90.013) - (576.315 + 0 + 167.868)
=829.169

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(648.815 + 767.757 + 34.801) - (681.709 + 0 + 5.124)
=764.54

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of RS Group for the quarter that ended in Sep. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=294.136/( ( (296.574 + max(829.169, 0)) + (270.419 + max(764.54, 0)) )/ 2 )
=294.136/( ( 1125.743 + 1034.959 )/ 2 )
=294.136/1080.351
=27.23 %

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


RS Group  (FRA:ECN) 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.


RS Group ROC (Joel Greenblatt) % Related Terms

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RS Group Business Description

Traded in Other Exchanges
Address
Two Pancras Square, Fifth Floor, London, GBR, N1C 4AG
RS Group PLC is a distributor of electronics and industrial products. The company provides semiconductors; interconnect, passives, and electromechanical components; automation and control products; and consumables through its two brands: RS and Allied Electronics. The main customer groups are electronic design engineers, machine and panel builders, and maintenance engineers. Electrocomponents' largest distribution channel is online through e-commerce. Other channels include catalogs, trade counters, and an international field sales network.

RS Group Headlines

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