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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. Monolithic Power Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 76.43%.
The historical rank and industry rank for Monolithic Power Systems's ROC (Joel Greenblatt) % or its related term are showing as below:
During the past 13 years, Monolithic Power Systems's highest ROC (Joel Greenblatt) % was 83.21%. The lowest was 35.44%. And the median was 47.46%.
Monolithic Power Systems's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 12.80% per year.
The historical data trend for Monolithic Power Systems'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.
Monolithic Power Systems Annual Data | |||||||||||||||||||||
Trend | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | Dec24 | |||||||||||
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial |
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48.14 | 59.56 | 83.21 | 63.10 | 65.32 |
Monolithic Power Systems Quarterly Data | ||||||||||||||||||||
Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | Dec24 | |
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial |
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56.28 | 49.97 | 58.90 | 78.96 | 76.43 |
For the Semiconductors subindustry, Monolithic Power Systems'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.
For the Semiconductors industry and Technology sector, Monolithic Power Systems's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Monolithic Power Systems'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:
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. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (164.704 | + | 424.942 | + | 108.4) | - | (224.948 | + | 6.315 | + | 105.325) |
= | 361.458 |
Working Capital | (Q: Dec. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (172.518 | + | 419.611 | + | 49.968) | - | (230.649 | + | 0 | + | 63.918) |
= | 347.53 |
When net working capital is negative, 0 is used.
So ROC (Joel Greenblatt) % of Monolithic Power Systems for the quarter that ended in Dec. 2024 can be restated as:
ROC (Joel Greenblatt) % | (Q: Dec. 2024 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Sep. 2024 | Q: Dec. 2024 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | 653.228 | / | ( ( (471.291 + max(361.458, 0)) | + | (529.143 + max(347.53, 0)) ) | / | 2 ) |
= | 653.228 | / | ( ( 832.749 | + | 876.673 ) | / | 2 ) |
= | 653.228 | / | 854.711 | ||||
= | 76.43 % |
Note: The EBIT data used here is four times the quarterly (Dec. 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.
Monolithic Power Systems (NAS:MPWR) 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.
Thank you for viewing the detailed overview of Monolithic Power Systems's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Michael Hsing | director, 10 percent owner, officer: President and CEO | 79 GREAT OAKS BLVD, SAN JOSE CA 95119 |
Theodore Blegen | officer: CFO | 5808 LAKE WASHINGTON BLVD NE, KIRKLAND WA 98033 |
Saria Tseng | officer: VP and General Counsel | 79 GREAT OAKS BLVD, SAN JOSE CA 95119 |
Deming Xiao | officer: Vice President of Operations | 79 GREAT OAKS BLVD, SAN JOSE CA 95119 |
Maurice Sciammas | officer: Sr. V.P.of Sales and Marketing | 79 GREAT OAKS BLVD, SAN JOSE CA 95119 |
Chang Kuo Wei Herbert | director, 10 percent owner | C/O MARVELL SEMICONDUCTOR, INC., 5488 MARVELL LANE, SANTA CLARA CA 95054 |
Victor K Lee | director | C/O LEADIS TECHNOLOGY, 800 W. CALIFORNIA AVENUE, SUITE 200, SUNNYVALE CA 94086 |
Jeff Zhou | director | 6409 GUADALUPE MINES ROAD, SAN JOSE CA 95120 |
James C Moyer | director, 10 percent owner, officer: Chief Design Engineer | 79 GREAT OAKS BLVD, SAN JOSE CA 95119 |
Eileen Wynne | director | MONOLITHIC POWER SYSTEMS, 79 GREAT OAKS BLVD, SAN JOSE CA 95117 |
Eugen J Elmiger | director | BUEELHADE 3A, SEMPACH STADT V8 6204 |
Carintia Martinez | director | 5808 LAKE WASHINGTON BLVD NE, KIRKLAND WA 98033 |
Meera Rao | officer: VP of Finance, Corp Controller | 1050 ENTERPRISE WAY, SUITE 700, SUNNYVALE CA 94089 |
Douglas M Mcburnie | director | 233 S. HILLVIEW DRIVE, MILPITAS CA 95035 |
Smith- Pilkington Karen A | director | 343 STATE STREET, ROCHESTER NY 146500211 |
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