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RBM Infracon (NSE:RBMINFRA) ROC (Joel Greenblatt) % : 23.05% (As of Mar. 2023)


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What is RBM Infracon 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. RBM Infracon's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2023 was 23.05%.

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

NSE:RBMINFRA's ROC (Joel Greenblatt) % is not ranked *
in the Construction industry.
Industry Median: 17.96
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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


RBM Infracon ROC (Joel Greenblatt) % Historical Data

The historical data trend for RBM Infracon'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.

RBM Infracon ROC (Joel Greenblatt) % Chart

RBM Infracon Annual Data
Trend Mar20 Mar21 Mar22 Mar23
ROC (Joel Greenblatt) %
3.97 -6.90 22.84 23.05

RBM Infracon Semi-Annual Data
Mar20 Mar21 Mar22 Mar23
ROC (Joel Greenblatt) % 3.97 -6.90 22.84 23.05

Competitive Comparison of RBM Infracon's ROC (Joel Greenblatt) %

For the Engineering & Construction subindustry, RBM Infracon'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.


RBM Infracon's ROC (Joel Greenblatt) % Distribution in the Construction Industry

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

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


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RBM Infracon 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: Mar. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(154.059 + 6.004 + 55.025) - (52.361 + 0 + 46.246)
=116.481

Working Capital(Q: Mar. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(186.335 + 58.441 + 80.921) - (74.766 + 0 + 85.31)
=165.621

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of RBM Infracon for the quarter that ended in Mar. 2023 can be restated as:

ROC (Joel Greenblatt) %(Q: Mar. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2022  Q: Mar. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=40.29/( ( (27.121 + max(116.481, 0)) + (40.374 + max(165.621, 0)) )/ 2 )
=40.29/( ( 143.602 + 205.995 )/ 2 )
=40.29/174.7985
=23.05 %

Note: The EBIT data used here is one times the annual (Mar. 2023) 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.


RBM Infracon  (NSE:RBMINFRA) 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.


RBM Infracon ROC (Joel Greenblatt) % Related Terms

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RBM Infracon Business Description

Traded in Other Exchanges
N/A
Address
C/O Rahul Mani Tripathi Mb Complex, Main Road, Baitalpur, UP, IND, 274201
RBM Infracon Ltd is engaged in the business of engineering, execution, testing, commissioning operation and maintenance, particularly in the field of mechanical and rotary equipment for Oil & Gas Refineries, Gas Cracker Plants, Coal/Gas/WHR based Power Plants, Petrochemical, Chemicals, Cement, Fertilizers. The company is involved in ARC (Annual Rate Contracts) Mechanical job (Static +Rotary) at Nayara in different plant like crude Crude ( CDU-VDU) , DHDS, FCCU, NHT-CCR, HMU-I & II , VGO -DHDT-ISOM , CPP ( Boiler , Piping HT job with IBR coordination ) , DCU( Coker) Utility , Off site , RTF (Pit area) dispatch , Rail and Jetty with around 650 Manpower and also involve in ARC maintenance job in RIL-Jamnagar and YARA-Babrala.

RBM Infracon Headlines

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