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Renew Holdings (LSE:RNWH) ROC (Joel Greenblatt) % : 149.78% (As of Mar. 2024)


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What is Renew Holdings 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. Renew Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 149.78%.

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

LSE:RNWH' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 122.05   Med: 160.72   Max: 193.84
Current: 154.13

During the past 13 years, Renew Holdings's highest ROC (Joel Greenblatt) % was 193.84%. The lowest was 122.05%. And the median was 160.72%.

LSE:RNWH's ROC (Joel Greenblatt) % is ranked better than
92.25% of 1716 companies
in the Construction industry
Industry Median: 17.77 vs LSE:RNWH: 154.13

Renew Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.50% per year.


Renew Holdings ROC (Joel Greenblatt) % Historical Data

The historical data trend for Renew Holdings'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.

Renew Holdings ROC (Joel Greenblatt) % Chart

Renew Holdings Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 138.57 134.87 159.92 181.16 137.17

Renew Holdings Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 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 194.32 156.32 205.51 149.78 -

Competitive Comparison of Renew Holdings's ROC (Joel Greenblatt) %

For the Engineering & Construction subindustry, Renew Holdings'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.


Renew Holdings's ROC (Joel Greenblatt) % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Renew Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Renew Holdings 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: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(48.597 + 4.169 + 0.81399999999999) - (105.594 + 0 + 138.442)
=-190.456

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(193.725 + 4.002 + 3.184) - (233.032 + 0 + 16.708)
=-48.829

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Renew Holdings for the quarter that ended in Mar. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=61.806/( ( (38.574 + max(-190.456, 0)) + (43.956 + max(-48.829, 0)) )/ 2 )
=61.806/( ( 38.574 + 43.956 )/ 2 )
=61.806/41.265
=149.78 %

Note: The EBIT data used here is two times the semi-annual (Mar. 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.


Renew Holdings  (LSE:RNWH) 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.


Renew Holdings ROC (Joel Greenblatt) % Related Terms

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Renew Holdings Business Description

Traded in Other Exchanges
N/A
Address
3125 Century Way, Thorpe Park, Leeds, GBR, LS15 8ZB
Renew Holdings PLC provides multidisciplinary engineering services to the energy, environmental, infrastructure, and specialist building sectors in the United Kingdom. Its activity is operated through the following business segments: which include Engineering Services, Specialist Building, and Central Activities. Engineering Services comprises the Group's engineering activities. Specialist Building comprises the Group's building activities. The Central activities include the sale of land, the leasing, and sub-leasing of properties. The company derives the maximum revenue from the Engineering service segment.

Renew Holdings Headlines

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