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. Avanta Serviced Office Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2014 was 34.95%.
The historical rank and industry rank for Avanta Serviced Office Group's ROC (Joel Greenblatt) % or its related term are showing as below:
LSE:ASOA'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -40.84 Med: 8.31 Max: 149.41
Current: 7.86
During the past 13 years, Avanta Serviced Office Group's highest ROC (Joel Greenblatt) % was 149.41%. The lowest was -40.84%. And the median was 8.31%.
LSE:ASOA's ROC (Joel Greenblatt) % is not ranked
in the Asset Management industry.
Industry Median: 64.34
vs LSE:ASOA: 7.86
Avanta Serviced Office Group (LSE:ASOA) 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.
* 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.
Avanta Serviced Office Group ROC (Joel Greenblatt) % Chart
LSE:ASOA vs AINC, HCAP, OCCAF: ROC (Joel Greenblatt) % Comparison
For the Asset Management subindustry, Avanta Serviced Office 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.
Avanta Serviced Office Group ROC (Joel Greenblatt) % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Avanta Serviced Office Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Avanta Serviced Office Group's ROC (Joel Greenblatt) % falls into.
Avanta Serviced Office Group 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 two times the semi-annual (Jun. 2014) 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 34.95% mean?
Avanta Serviced Office Group (LSE:ASOA) has a ROC (Joel Greenblatt) % of 34.95% as of Jun. 2014. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Avanta Serviced Office Group and its competitors. This is 321% above median its historical median of 8.31.
Is Avanta Serviced Office Group's ROC (Joel Greenblatt) % too high?
Avanta Serviced Office Group's current ROC (Joel Greenblatt) % of 34.95% is 321% above median its 10-year median of 8.31. The Asset Management industry median ROC (Joel Greenblatt) % is 64.34. Avanta Serviced Office Group's value of 34.95% is 45.7% below this industry median.
How does Avanta Serviced Office Group's ROC (Joel Greenblatt) % compare to AINC and HCAP?
Avanta Serviced Office Group's ROC (Joel Greenblatt) % of 34.95% can be compared against companies in the Asset Management industry. The industry median ROC (Joel Greenblatt) % is 64.34. Avanta Serviced Office Group's value of 34.95% is 45.7% below this benchmark. While the company's 10-year median is 8.31 vs. the industry median of 64.34, Avanta Serviced Office Group has consistently been below 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 an Asset Management company?
The median ROC (Joel Greenblatt) % among Asset Management companies is 64.34, based on 628 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. Avanta Serviced Office Group's current ROC (Joel Greenblatt) % of 34.95% is 45.7% below 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 Avanta Serviced Office Group and its competitors. For the Asset Management industry, the median ROC (Joel Greenblatt) % is 64.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avanta Serviced Office Group's current ROC (Joel Greenblatt) % is 34.95%, which is 321% above median its own 10-year median of 8.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avanta Serviced Office Group stock overvalued right now?
Avanta Serviced Office Group (LSE:ASOA) has a current ROC (Joel Greenblatt) % of 34.95%. The current ROC (Joel Greenblatt) % is 34.95%, which is 321% above median its 10-year median of 8.31 and 45.7% below the Asset Management industry median of 64.34. 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 Avanta Serviced Office Group (LSE:ASOA), the current ROC (Joel Greenblatt) % is 34.95% as of Jun. 2014. 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.
Serviced Office Group PLC is engaged in the ownership and operation of serviced office accommodation. Its reportable segments are Serviced office business and Managed serviced offices. Serviced office business undertaken in the group's freehold and leasehold properties; and Managed serviced office business undertaken under management contracts on behalf of third parties. The Group operates solely from the UK.
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