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Lovisa Holdings (FRA:LO7) ROC (Joel Greenblatt) % : 44.03% (As of Dec. 2024)


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What is Lovisa Holdings 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. Lovisa Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 44.03%.

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

FRA:LO7' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 21.96   Med: 99.07   Max: 269.33
Current: 34.3

During the past 10 years, Lovisa Holdings's highest ROC (Joel Greenblatt) % was 269.33%. The lowest was 21.96%. And the median was 99.07%.

FRA:LO7's ROC (Joel Greenblatt) % is ranked better than
81.03% of 1112 companies
in the Retail - Cyclical industry
Industry Median: 10.95 vs FRA:LO7: 34.30

Lovisa Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -16.80% per year.


Lovisa Holdings ROC (Joel Greenblatt) % Historical Data

The historical data trend for Lovisa 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.

* Premium members only.

Lovisa Holdings ROC (Joel Greenblatt) % Chart

Lovisa Holdings Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.05 22.34 38.55 32.90 33.28

Lovisa Holdings Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 50.13 20.29 42.03 24.41 44.03

Competitive Comparison of Lovisa Holdings's ROC (Joel Greenblatt) %

For the Specialty Retail subindustry, Lovisa 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.


Lovisa Holdings's ROC (Joel Greenblatt) % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Lovisa Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:

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


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Lovisa Holdings 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: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.862 + 42.331 + 11.781) - (37.715 + 5.102 + 7.415)
=4.742

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(12.133 + 43.952 + 9.22) - (40.846 + 5.737 + 8.168)
=10.554

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Lovisa Holdings for the quarter that ended in Dec. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Dec. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Dec. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=109.476/( ( (231.317 + max(4.742, 0)) + (250.72 + max(10.554, 0)) )/ 2 )
=109.476/( ( 236.059 + 261.274 )/ 2 )
=109.476/248.6665
=44.03 %

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


Lovisa Holdings  (FRA:LO7) 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.


Lovisa Holdings ROC (Joel Greenblatt) % Related Terms

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Lovisa Holdings Business Description

Traded in Other Exchanges
Address
818-820 Glenferrie Road, Level 1, Hawthorn, Melbourne, VIC, AUS, 3122
Lovisa is a global fast-fashion retailer specializing in jewelry. A vertically integrated supply chain allows it to develop, source, and merchandise its exclusive products. Its target customer base is millennials seeking affordable and fashionable jewelry or receiving it as gifts. Lovisa's global network of own-operated and franchised stores span across more than 30 countries. Lovisa's sales growth record is largely underpinned by global store rollouts. The store format and offering is standardized globally, with stores typically in shopping centers and malls with relatively high foot traffic and sales per square meter. Lovisa also operates online stores and in-store piercing services in all its jurisdictions.

Lovisa Holdings Headlines

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