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IOSP (Innospec) ROC (Joel Greenblatt) % : 30.29% (As of Sep. 2024)


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What is Innospec 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. Innospec's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 30.29%.

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

IOSP' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 8.6   Med: 33.05   Max: 75.45
Current: 29.34

During the past 13 years, Innospec's highest ROC (Joel Greenblatt) % was 75.45%. The lowest was 8.60%. And the median was 33.05%.

IOSP's ROC (Joel Greenblatt) % is ranked better than
87.02% of 1549 companies
in the Chemicals industry
Industry Median: 9.34 vs IOSP: 29.34

Innospec's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 1.00% per year.


Innospec ROC (Joel Greenblatt) % Historical Data

The historical data trend for Innospec'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.

Innospec ROC (Joel Greenblatt) % Chart

Innospec Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.41 8.60 26.51 33.69 26.12

Innospec Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 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 28.22 25.15 34.10 27.63 30.29

Competitive Comparison of Innospec's ROC (Joel Greenblatt) %

For the Specialty Chemicals subindustry, Innospec'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.


Innospec's ROC (Joel Greenblatt) % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Innospec's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Innospec 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)
=(300.3 + 313.5 + 22.8) - (312.1 + 0 + 5.8)
=318.7

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(327.6 + 319.3 + 14.9) - (354.5 + 0 + 4.6)
=302.7

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Innospec 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: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=191.6/( ( (319.8 + max(318.7, 0)) + (323.7 + max(302.7, 0)) )/ 2 )
=191.6/( ( 638.5 + 626.4 )/ 2 )
=191.6/632.45
=30.29 %

Note: The EBIT data used here is four times the quarterly (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.


Innospec  (NAS:IOSP) 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.


Innospec ROC (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Innospec's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Innospec Business Description

Traded in Other Exchanges
Address
8310 South Valley Highway, Suite 350, Englewood, CO, USA, 80112
Innospec Inc manufactures and sells a variety of chemicals and fuel additives. The firm organizes itself into three segments based on product type. The fuel specialties segment, which generates the majority of revenue, sells products used to improve fuel efficiency, boost engine performance, and reduce emissions for automobiles, boats, and airplanes. It also sells products used by oil field services providers in the extraction of oil and gas. The performance chemicals segment sells products to the personal-care industry. The Oilfield Services segment develops and markets products to prevent loss of mud.
Executives
Claudia Poccia director 8310 SOUTH VALLEY HIGHWAY, SUITE 350, ENGLEWOOD CO 80112
Milton C Blackmore director 8310 S. VALLEY HWY, SUITE 350, DENVER CO 80112
Ian Cleminson officer: Exec VP & CFO OAK DALE, 84 ALBERT ROAD, GRAPPENHALL, WARRINGTON X0 WA4 2PG
Leslie J Parrette director
Griffin Hardy Louis Iii officer: SVP, HUMAN RESOURCES 8310 SOUTH VALLEY HIGHWAY, SUITE 350, ENGLEWOOD CO 80112
Bentley Jones David officer: VP, GC & CCO 8310 S. VALLEY HWY, SUITE 350, DENVER CO 80112
Patrick Williams officer: Exec VP & President, Pet Specs 8310 S. VALLEY HWY, SUITE 350, DENVER CO 80112
Philip John Boon other: Marketing Director Pet Specs 8310 S. VALLEY HWY, SUITE 350, DENVER CO 80112
Larry Padfield director 8310 S. VALLEY HWY, SUITE 350, DENVER CO 80112
Barnes Corbin officer: SVP, Corporate Dev and IR 8310 SOUTH VALLEY HIGHWAY, SUITE 350, ENGLEWOOD CO 80112
David Landless director 8310 S. VALLEY HWY, SUITE 350, DENVER CO 80112
Brian Watt other: VP, Strategic Planning THE LODGE, HUSTHWAITE, YORK X0 YO61 4PD
Catherine Hessner officer: Senior VP - Human Resources 33 STRAWBERRY LANE, WILMSLOW CHESHIRE X0 SK96AQ
Elizabeth K Arnold director 8310 S. VALLEY HWY, SUITE 350, DENVER CO 80112
Graeme Blair officer: Head of Group Finance 8310 SOUTH VALLEY HIGHWAY, SUITE 350, ENGLEWOOD CO 80112