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MBC (MasterBrand) ROC (Joel Greenblatt) % : 34.32% (As of Sep. 2024)


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What is MasterBrand 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. MasterBrand's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 34.32%.

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

MBC' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 29.3   Med: 34.24   Max: 43.93
Current: 39.66

During the past 5 years, MasterBrand's highest ROC (Joel Greenblatt) % was 43.93%. The lowest was 29.30%. And the median was 34.24%.

MBC's ROC (Joel Greenblatt) % is ranked better than
86.05% of 430 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 11.025 vs MBC: 39.66

MasterBrand's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


MasterBrand ROC (Joel Greenblatt) % Historical Data

The historical data trend for MasterBrand'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.

MasterBrand ROC (Joel Greenblatt) % Chart

MasterBrand Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
- 32.43 36.04 29.30 43.93

MasterBrand Quarterly Data
Dec19 Dec20 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 57.07 37.45 39.00 49.49 34.32

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

For the Furnishings, Fixtures & Appliances subindustry, MasterBrand'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.


MasterBrand's ROC (Joel Greenblatt) % Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, MasterBrand's ROC (Joel Greenblatt) % distribution charts can be found below:

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



MasterBrand 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)
=(213.5 + 270 + 72.4) - (173.6 + 0 + 142.9)
=239.4

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(216.1 + 299.4 + 63) - (175.3 + 0 + 186.3)
=216.9

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of MasterBrand 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 )
=237.6/( ( (400.2 + max(239.4, 0)) + (528 + max(216.9, 0)) )/ 2 )
=237.6/( ( 639.6 + 744.9 )/ 2 )
=237.6/692.25
=34.32 %

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.


MasterBrand  (NYSE:MBC) 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.


MasterBrand ROC (Joel Greenblatt) % Related Terms

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


MasterBrand Business Description

Traded in Other Exchanges
N/A
Address
3300 Enterprise Parkway, Suite 300, Beachwood, OH, USA, 44122
MasterBrand Inc operates as a residential cabinet manufacturer in North America. It offers a comprehensive portfolio of residential cabinetry products for the kitchen, bathroom, and other parts of the home. The firm sells its products throughout the United States and Canada through three primary channels: dealers, retailers, and builders.
Executives
Mark A. Young officer: VP, Chief Accounting Officer 701 LIMA AVENUE, FINDLAY OH 45840
Ann F Hackett director
Robert Crisci director C/O ROPER TECHNOLOGIES, INC., 6901 PROFESSIONAL PARKWAY, SARASOTA FL 34240
Kurt Wanninger officer: EVP & Chief Operations Officer C/O NORCRAFT COMPANIES, INC., 3020 DENMARK AVENUE, SUITE 100, EAGAN MN 55121
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Goldman Sachs & Co. Llc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Juliana L Chugg director 1200 WILLOW LAKE BOULEVARD, PO BOX 64683, ST PAUL MN 55164-0683
David D Petratis director 1415 ROSELLE ROAD, PALATINE IL 60067
Andrean Horton officer: EVP, CLO & Secretary 3637 RIDGEWOOD RD, FAIRLAWN X1 44333
Jeffery S. Perry director 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Bruce Alan Kendrick officer: EVP & Chief HR Officer 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Van Doren Martin Scott officer: EVP, Sales 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Andrea Helen Simon officer: EVP & CFO 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Navneet Grewal officer: EVP, Chief Digital & Tech Off. 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Patrick D Hallinan director FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015