GURUFOCUS.COM » STOCK LIST » Technology » Software » TextMagic AS (OTSE:MAGIC) » Definitions » ROC (Joel Greenblatt) %

TextMagic AS (OTSE:MAGIC) ROC (Joel Greenblatt) % : 2,177.78% (As of Jun. 2024)


View and export this data going back to 2021. Start your Free Trial

What is TextMagic AS 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. TextMagic AS's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 2,177.78%.

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

OTSE:MAGIC' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1736.49   Med: 1875.26   Max: 2224.27
Current: 2224.27

During the past 3 years, TextMagic AS's highest ROC (Joel Greenblatt) % was 2224.27%. The lowest was 1736.49%. And the median was 1875.26%.

OTSE:MAGIC's ROC (Joel Greenblatt) % is ranked better than
98.4% of 2744 companies
in the Software industry
Industry Median: 17.535 vs OTSE:MAGIC: 2224.27

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


TextMagic AS ROC (Joel Greenblatt) % Historical Data

The historical data trend for TextMagic AS'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.

TextMagic AS ROC (Joel Greenblatt) % Chart

TextMagic AS Annual Data
Trend Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
- 2,014.02 1,736.49

TextMagic AS Semi-Annual Data
Jun22 Dec22 Jun23 Dec23 Jun24
ROC (Joel Greenblatt) % 1,778.67 1,636.36 977.41 2,430.32 2,177.78

Competitive Comparison of TextMagic AS's ROC (Joel Greenblatt) %

For the Software - Application subindustry, TextMagic AS'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.


TextMagic AS's ROC (Joel Greenblatt) % Distribution in the Software Industry

For the Software industry and Technology sector, TextMagic AS's ROC (Joel Greenblatt) % distribution charts can be found below:

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



TextMagic AS 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: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.024 + 0 + 0.231) - (0.72 + 0 + 3.079)
=-3.544

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.09 + 0 + 0.2) - (0.847 + 0 + 2.793)
=-3.35

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of TextMagic AS 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: Dec. 2023  Q: Jun. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2.254/( ( (0.105 + max(-3.544, 0)) + (0.102 + max(-3.35, 0)) )/ 2 )
=2.254/( ( 0.105 + 0.102 )/ 2 )
=2.254/0.1035
=2,177.78 %

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


TextMagic AS  (OTSE:MAGIC) 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.


TextMagic AS ROC (Joel Greenblatt) % Related Terms

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


TextMagic AS Business Description

Industry
Traded in Other Exchanges
N/A
Address
Moisa Road 4, Tallinn, EST, 13522
TextMagic AS is a text messaging company that helps businesses to engage with customers. The activity of the group is the management and development of software products. The company operates mainly in the U.S., the U.K., Canada, and Australia. TextMagic enables companies to transform customer experiences through its easy-to-use text messaging marketing software, which can be used for sending notifications, alerts, reminders, confirmations, and SMS marketing campaigns anytime, anywhere. The majority of revenue is derived from the United States and Canada.

TextMagic AS Headlines

No Headlines