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Klarna GroupKLAR +2.36%14 ROC (Joel Greenblatt) % is 1,114.75% as of Mar. 2026, which is 115% above its 10-year median of 517.87. GuruFocus rates KLAR with a GF Score™ of 14/100. The stock has 3 warning signs investors should review. Among 419 Credit Services companies, Klarna Group ranks better than 88.07% on this metric.
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. Klarna Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 1,114.75%.
The historical rank and industry rank for Klarna Group's ROC (Joel Greenblatt) % or its related term are showing as below:
KLAR'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -5.74 Med: 517.87 Max: 897.55
Current: 897.55
During the past 4 years, Klarna Group's highest ROC (Joel Greenblatt) % was 897.55%. The lowest was -5.74%. And the median was 517.87%.
KLAR's ROC (Joel Greenblatt) % is ranked better than 88.07% of 419
companies
in the Credit Services industry
Industry Median: 35.73
vs KLAR: 897.55
Klarna Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Klarna Group (NYSE:KLAR) 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.
Klarna Group ROC (Joel Greenblatt) % Related Terms
Klarna Group ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Klarna Group'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.
KLAR vs OMF, CACC, ENVA: ROC (Joel Greenblatt) % Comparison
For the Credit Services subindustry, Klarna Group'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.
Klarna Group ROC (Joel Greenblatt) % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Klarna Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Klarna Group's ROC (Joel Greenblatt) % falls into.
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 (Mar. 2026) 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 1,114.75% mean?
Klarna Group (KLAR) has a ROC (Joel Greenblatt) % of 1,114.75% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Klarna Group and its competitors. This is 115% above median its historical median of 517.87. According to the industry distribution chart, Klarna Group ranks #50 out of 419 companies in the Credit Services industry, placing it in the top 11.9%.
Is Klarna Group's ROC (Joel Greenblatt) % too high?
Klarna Group's current ROC (Joel Greenblatt) % of 1,114.75% is 115% above median its 10-year median of 517.87. The Credit Services industry median ROC (Joel Greenblatt) % is 35.73. Klarna Group's value of 1,114.75% is 3019.9% above this industry median. Based on the distribution chart, Klarna Group ranks #50 out of 419 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Klarna Group has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Klarna Group's ROC (Joel Greenblatt) % compare to OMF and CACC?
According to the Credit Services industry distribution chart, Klarna Group ranks #50 out of 419 companies for ROC (Joel Greenblatt) %. This places Klarna Group in the top 12% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 35.73. Klarna Group's value of 1,114.75% is 3019.9% above this benchmark. While the company's 10-year median is 517.87 vs. the industry median of 35.73, Klarna Group has consistently been above the industry average. 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 Credit Services company?
The median ROC (Joel Greenblatt) % among Credit Services companies is 35.73, based on 419 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. Klarna Group's current ROC (Joel Greenblatt) % of 1,114.75% is 3019.9% 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 Klarna Group and its competitors. For the Credit Services industry, the median ROC (Joel Greenblatt) % is 35.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Klarna Group's current ROC (Joel Greenblatt) % is 1,114.75%, which is 115% above median its own 10-year median of 517.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Klarna Group stock overvalued right now?
Klarna Group (KLAR) has a current ROC (Joel Greenblatt) % of 1,114.75%. The current ROC (Joel Greenblatt) % is 1,114.75%, which is 115% above median its 10-year median of 517.87 and 3019.9% above the Credit Services industry median of 35.73. Klarna Group's overall GF Score™ is 14/100 with 3 warning signs to review. 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 Klarna Group (KLAR), the current ROC (Joel Greenblatt) % is 1,114.75% as of Mar. 2026. 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.
Klarna Group PLC is a technology-driven payments company, with operations spanning multiple countries. It connects consumers and merchants with comprehensive payment solutions and tailored advertising solutions, both online and offline. Its payment solutions provide consumers with more control and flexibility over their payments. It is a digital bank and flexible payments provider building the next-generation AI-powered commerce network.
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