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. InterCloud Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2018 was 7,056.52%.
The historical rank and industry rank for InterCloud Systems's ROC (Joel Greenblatt) % or its related term are showing as below:
ICLD's ROC (Joel Greenblatt) % is not ranked *
in the Software industry.
Industry Median: 19.99 * Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
InterCloud Systems's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
InterCloud Systems (OTCPK:ICLD) 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.
InterCloud Systems ROC (Joel Greenblatt) % Related Terms
InterCloud Systems ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for InterCloud Systems'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.
InterCloud Systems ROC (Joel Greenblatt) % Competitor Comparison
For the Information Technology Services subindustry, InterCloud Systems'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.
InterCloud Systems ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, InterCloud Systems's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where InterCloud Systems's ROC (Joel Greenblatt) % falls into.
InterCloud Systems 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:
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.
Note:
The EBIT data used here is four times the quarterly (Sep. 2018) 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.
What does a ROC (Joel Greenblatt) % of 7,056.52% mean?
InterCloud Systems (ICLD) has a ROC (Joel Greenblatt) % of 7,056.52% as of Sep. 2018. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on InterCloud Systems and its competitors.
Is InterCloud Systems' ROC (Joel Greenblatt) % too high?
InterCloud Systems' current ROC (Joel Greenblatt) % is 7,056.52%. The Software industry median ROC (Joel Greenblatt) % is 19.99. InterCloud Systems' value of 7,056.52% is 35200.3% above this industry median.
How does InterCloud Systems' ROC (Joel Greenblatt) % compare to competitors?
InterCloud Systems' ROC (Joel Greenblatt) % of 7,056.52% can be compared against companies in the Software industry. The industry median ROC (Joel Greenblatt) % is 19.99. InterCloud Systems' value of 7,056.52% is 35200.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC (Joel Greenblatt) % for a Software company?
The median ROC (Joel Greenblatt) % among Software companies is 19.99, based on 2,807 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. InterCloud Systems's current ROC (Joel Greenblatt) % of 7,056.52% is 35200.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on InterCloud Systems and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. InterCloud Systems's current ROC (Joel Greenblatt) % is 7,056.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is InterCloud Systems stock overvalued right now?
InterCloud Systems (ICLD) has a current ROC (Joel Greenblatt) % of 7,056.52%. The current ROC (Joel Greenblatt) % is 7,056.52% and 35200.3% above the Software industry median of 19.99. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For InterCloud Systems (ICLD), the current ROC (Joel Greenblatt) % is 7,056.52% as of Sep. 2018. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
InterCloud Systems Inc is a provider of networking orchestration and automation for the Internet of things (IOT), software-defined networking (SDN) and network function virtualization (NFV) environments. The company operates in three operating segments - as an application and infrastructure provider, and professional services provider.The applications and infrastructure segment provides engineering and professional consulting services and voice, data and optical solutions. The professional services segment provides outsourced services to the wireless and wireline industry and information technology industry.
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