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Sterling Group Holdings (HKSE:01825) ROC (Joel Greenblatt) % : 16.44% (As of Sep. 2024)


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What is Sterling Group 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. Sterling Group Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 16.44%.

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

HKSE:01825' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -25.14   Med: -4.38   Max: 36.88
Current: 4.82

During the past 9 years, Sterling Group Holdings's highest ROC (Joel Greenblatt) % was 36.88%. The lowest was -25.14%. And the median was -4.38%.

HKSE:01825's ROC (Joel Greenblatt) % is ranked worse than
62.31% of 1056 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 9.575 vs HKSE:01825: 4.82

Sterling Group Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


Sterling Group Holdings ROC (Joel Greenblatt) % Historical Data

The historical data trend for Sterling Group 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.

Sterling Group Holdings ROC (Joel Greenblatt) % Chart

Sterling Group Holdings Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only -24.32 -15.00 -25.14 21.74 -4.38

Sterling Group Holdings Semi-Annual Data
Mar16 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 27.40 26.64 -4.64 -6.13 16.44

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

For the Apparel Manufacturing subindustry, Sterling Group 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.


Sterling Group Holdings's ROC (Joel Greenblatt) % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sterling Group Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Sterling Group 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: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(123.631 + 28.272 + 48.279) - (90.978 + 0 + 0)
=109.204

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(128.429 + 26.578 + 2.554) - (156.725 + 0 + 2.8421709430404E-14)
=0.83599999999996

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Sterling Group Holdings 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 )
=18.848/( ( (61.472 + max(109.204, 0)) + (57.828 + max(0.83599999999996, 0)) )/ 2 )
=18.848/( ( 170.676 + 58.664 )/ 2 )
=18.848/114.67
=16.44 %

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.


Sterling Group Holdings  (HKSE:01825) 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.


Sterling Group Holdings ROC (Joel Greenblatt) % Related Terms

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Sterling Group Holdings Business Description

Traded in Other Exchanges
N/A
Address
9 Sheung Hei Street, 18th - 19th Floor, Win Plaza, San Po Kong, Kowloon, Hong Kong, HKG
Sterling Group Holdings Ltd is an apparel manufacturer headquartered in Hong Kong providing a one-stop apparel manufacturing solution for its customers. Its products include outerwear, tops, bottoms, dresses, suits, gowns, scarf, jumpsuits, and vests among others. The company operates through two segments: Manufacturing and trading of apparel products and Licensing of trademarks for licensing income. It generates the majority of its revenue from the Manufacturing and trading of apparel products. Its geographic areas are Hong Kong, the United States, Italy, and Others.
Executives
Fetar Investment Limited 2101 Beneficial owner
Zhenda Investment Limited 2101 Beneficial owner
Moonlight Global Holdings Limited 2101 Beneficial owner
Siu Chi Wai 2201 Interest of corporation controlled by you
Wong Mei Wai Alice 2202 Interest of your spouse
Sesame Capital 2102 Investment manager

Sterling Group Holdings Headlines

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