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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. Management Consulting Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 was -429.05%.
The historical rank and industry rank for Management Consulting Group's ROC (Joel Greenblatt) % or its related term are showing as below:
LSE:MMC'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -3442.16 Med: 51.18 Max: 858.1
Current: -482.05
During the past 13 years, Management Consulting Group's highest ROC (Joel Greenblatt) % was 858.10%. The lowest was -3442.16%. And the median was 51.18%.
LSE:MMC's ROC (Joel Greenblatt) % is not ranked
in the Business Services industry.
Industry Median: 21.22
vs LSE:MMC: -482.05
Management Consulting Group (LSE:MMC) 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.
Management Consulting Group ROC (Joel Greenblatt) % Chart
LSE:MMC vs INFO, VRSK, EFX: ROC (Joel Greenblatt) % Comparison
For the Consulting Services subindustry, Management Consulting 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.
Management Consulting Group ROC (Joel Greenblatt) % vs Business Services Industry
For the Business Services industry and Industrials sector, Management Consulting Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Management Consulting Group's ROC (Joel Greenblatt) % falls into.
Management Consulting 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 (Dec. 2019) 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 -429.05% mean?
Management Consulting Group (LSE:MMC) has a ROC (Joel Greenblatt) % of -429.05% as of Dec. 2019. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Management Consulting Group and its competitors.
Is Management Consulting Group's ROC (Joel Greenblatt) % too high?
Management Consulting Group's current ROC (Joel Greenblatt) % is -429.05%.
How does Management Consulting Group's ROC (Joel Greenblatt) % compare to INFO and VRSK?
Management Consulting Group's ROC (Joel Greenblatt) % of -429.05% can be compared against companies in the Business Services industry. The industry median ROC (Joel Greenblatt) % is 21.22. 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 Business Services company?
The median ROC (Joel Greenblatt) % among Business Services companies is 21.22, based on 1,083 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. 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 Management Consulting Group and its competitors. For the Business Services industry, the median ROC (Joel Greenblatt) % is 21.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Management Consulting Group's current ROC (Joel Greenblatt) % is -429.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Management Consulting Group stock overvalued right now?
Based on GuruFocus' analysis, Management Consulting Group (LSE:MMC) is currently considered Possible Value Trap. The current ROC (Joel Greenblatt) % is -429.05%. 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 Management Consulting Group (LSE:MMC), the current ROC (Joel Greenblatt) % is -429.05% as of Dec. 2019. 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.
Management Consulting Group PLC is engaged in providing professional services to various industries and sectors via the Proudfoot practice. Proudfoot, which is a professional service practice designs, implements and accelerates the operational transformation that realizes tomorrow's results today. The company serves various industries including manufacturing, natural resources, consumer packaged goods, transportation, automotive, building materials and heavy industry. It also provides market-specific local customization for Financial Services and Healthcare sectors. The company provides its services in the Americas, Europe among other regions, and generates a vast majority of its revenue from Europe.
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