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Guoquan Food (Shanghai) Co (HKSE:02517) ROC (Joel Greenblatt) % : 43.17% (As of Dec. 2023)


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What is Guoquan Food (Shanghai) Co 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. Guoquan Food (Shanghai) Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 43.17%.

The historical rank and industry rank for Guoquan Food (Shanghai) Co's ROC (Joel Greenblatt) % or its related term are showing as below:

HKSE:02517' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -93.7   Med: 16.83   Max: 43.17
Current: 43.17

During the past 4 years, Guoquan Food (Shanghai) Co's highest ROC (Joel Greenblatt) % was 43.17%. The lowest was -93.70%. And the median was 16.83%.

HKSE:02517's ROC (Joel Greenblatt) % is ranked better than
87.52% of 1883 companies
in the Consumer Packaged Goods industry
Industry Median: 11.26 vs HKSE:02517: 43.17

Guoquan Food (Shanghai) Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


Guoquan Food (Shanghai) Co ROC (Joel Greenblatt) % Historical Data

The historical data trend for Guoquan Food (Shanghai) Co'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.

Guoquan Food (Shanghai) Co ROC (Joel Greenblatt) % Chart

Guoquan Food (Shanghai) Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
-6.66 -93.70 40.31 43.17

Guoquan Food (Shanghai) Co Semi-Annual Data
Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) % -6.66 -93.70 40.31 43.17

Competitive Comparison of Guoquan Food (Shanghai) Co's ROC (Joel Greenblatt) %

For the Packaged Foods subindustry, Guoquan Food (Shanghai) Co'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.


Guoquan Food (Shanghai) Co's ROC (Joel Greenblatt) % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Guoquan Food (Shanghai) Co's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Guoquan Food (Shanghai) Co's ROC (Joel Greenblatt) % falls into.



Guoquan Food (Shanghai) Co 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. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(150.003 + 1169.651 + 445.302) - (899.648 + 0 + 426.608)
=438.7

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(59.352 + 786.99 + 511.242) - (762.794 + 0 + 416.194)
=178.596

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Guoquan Food (Shanghai) Co for the quarter that ended in Dec. 2023 can be restated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2022  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=403.448/( ( (596.657 + max(438.7, 0)) + (654.962 + max(178.596, 0)) )/ 2 )
=403.448/( ( 1035.357 + 833.558 )/ 2 )
=403.448/934.4575
=43.17 %

Note: The EBIT data used here is one times the annual (Dec. 2023) 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.


Guoquan Food (Shanghai) Co  (HKSE:02517) 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.


Guoquan Food (Shanghai) Co ROC (Joel Greenblatt) % Related Terms

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Guoquan Food (Shanghai) Co (HKSE:02517) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Lane 187, Xinghong Road, Room 802, No. 3, Minhang, Shanghai, CHN
Guoquan Food (Shanghai) Co Ltd is the leading and rapidly growing home meal products brand in China. It offers a variety of ready-to-eat, ready-to-heat, ready-to-cook and prepared ingredients, with a focus on at-home hotpot and barbecue products. With a carefully curated product portfolio and an extensive network of community-based stores, it enables consumers to enjoy meals at home with convenience, affordability and tastiness. Leveraging its robust supply chain and production capabilities, The company offers a wide variety of home meal products under the Guoquan Shihui brand through a nationwide network of 9,844 retail stores in China, serving diverse dining scenarios.

Guoquan Food (Shanghai) Co (HKSE:02517) Headlines

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