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East African Breweries (NAI:EABL) ROC (Joel Greenblatt) % : 30.47% (As of Jun. 2024)


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What is East African Breweries 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. East African Breweries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 30.47%.

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

NAI:EABL' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 24.93   Med: 39.28   Max: 45.62
Current: 30.47

During the past 13 years, East African Breweries's highest ROC (Joel Greenblatt) % was 45.62%. The lowest was 24.93%. And the median was 39.28%.

NAI:EABL's ROC (Joel Greenblatt) % is ranked better than
72.64% of 212 companies
in the Beverages - Alcoholic industry
Industry Median: 13.56 vs NAI:EABL: 30.47

East African Breweries's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -1.50% per year.


East African Breweries ROC (Joel Greenblatt) % Historical Data

The historical data trend for East African Breweries'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.

East African Breweries ROC (Joel Greenblatt) % Chart

East African Breweries Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.18 24.93 43.25 31.42 30.47

East African Breweries Semi-Annual Data
Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
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 26.18 24.93 43.25 31.42 30.47

Competitive Comparison of East African Breweries's ROC (Joel Greenblatt) %

For the Beverages - Brewers subindustry, East African Breweries'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.


East African Breweries's ROC (Joel Greenblatt) % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, East African Breweries's ROC (Joel Greenblatt) % distribution charts can be found below:

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



East African Breweries 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. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7905.743 + 15608.384 + 6956.382) - (28259.889 + 0 + 2765.234)
=-554.61400000001

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(8664.825 + 12629.867 + 5494.242) - (25988.61 + 0 + 2872.576)
=-2072.252

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of East African Breweries for the quarter that ended in Jun. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Jun. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2023  Q: Jun. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=24733.645/( ( (84063.182 + max(-554.61400000001, 0)) + (78308.065 + max(-2072.252, 0)) )/ 2 )
=24733.645/( ( 84063.182 + 78308.065 )/ 2 )
=24733.645/81185.6235
=30.47 %

Note: The EBIT data used here is one times the annual (Jun. 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.


East African Breweries  (NAI:EABL) 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.


East African Breweries ROC (Joel Greenblatt) % Related Terms

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East African Breweries Business Description

Traded in Other Exchanges
N/A
Address
Corporate Centre, Block A, 5th Floor, P.O. Box 30161, Garden City Business Park, Ruaraka, Nairobi, KEN, 00100
East African Breweries PLC is a branded alcohol beverage company. The firm and its subsidiaries are involved in the marketing, production, and distribution of a collection of brands that range from beer, spirits, and adult non-alcoholic drinks. The company has invested in breweries, distilleries, support industries, and a distribution network across the region. The firm derives its revenue mainly from brewing, marketing, and selling of drinks, malt and barley. Its geographical segments include Kenya, Uganda, and Tanzania, of which the majority of the revenue is generated from Kenya.

East African Breweries Headlines

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