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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. Pepco Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2015 was 7.48%.
The historical rank and industry rank for Pepco Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
Pepco Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The historical data trend for Pepco Holdings'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.
Pepco Holdings Annual Data | |||||||||||||||||||||
Trend | Dec06 | Dec07 | Dec08 | Dec09 | Dec10 | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | |||||||||||
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial | 6.89 | 6.57 | 7.50 | 6.37 | 6.58 |
Pepco Holdings Quarterly Data | ||||||||||||||||||||
Mar11 | Jun11 | Sep11 | Dec11 | Mar12 | Jun12 | Sep12 | Dec12 | Mar13 | Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | |
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial | 4.42 | 5.59 | 5.45 | 7.47 | 7.48 |
For the Utilities - Regulated Electric subindustry, Pepco Holdings'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 Utilities - Regulated industry and Utilities sector, Pepco Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Pepco Holdings'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. 2015 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (947 | + | 142 | + | 175) | - | (627 | + | 0 | + | 274) |
= | 363 |
Working Capital | (Q: Dec. 2015 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (839 | + | 141 | + | 86) | - | (606 | + | 0 | + | 287) |
= | 173 |
When net working capital is negative, 0 is used.
So ROC (Joel Greenblatt) % of Pepco Holdings for the quarter that ended in Dec. 2015 can be restated as:
ROC (Joel Greenblatt) % | (Q: Dec. 2015 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Sep. 2015 | Q: Dec. 2015 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | 856 | / | ( ( (11037 + max(363, 0)) | + | (11304 + max(173, 0)) ) | / | 2 ) |
= | 856 | / | ( ( 11400 | + | 11477 ) | / | 2 ) |
= | 856 | / | 11438.5 | ||||
= | 7.48 % |
Note: The EBIT data used here is four times the quarterly (Dec. 2015) 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.
Pepco Holdings (NYSE:POM) 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 Pepco Holdings's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Laura L. Monica | officer: VICE PRESIDENT | 1025 LAUREL OAK ROAD, VOORHEES NJ 08043 |
Joseph M Rigby | director, officer: CHAIRMAN, PRESIDENT AND CEO | SOUTH JERSEY INDUSTRIES, 1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037 |
Terence C Golden | director | BAILEY CAPITAL CORPORATION, SUITE 601, 1156 - 15TH STREET, NW, WASHINGTON DC 20005 |
David M Velazquez | officer: EXECUTIVE VICE PRESIDENT | CONECTIV ENERGY, 500 N WAKEFIELD DRIVE, NEWARK DE 19702 |
Lawrence C Nussdorf | director | CLARK ENTERPRISES, INC., 7500 OLD GEORGETOWN RD., 15TH FLOOR, BETHESDA MD 20814-6195 |
Dunn Jack B Iv | director | 500 EAST PRATT STREET, C/O FTI CONSULTING, INC., BALTIMORE MD 21202 |
Patricia A. Oelrich | director | 62 ETTL CIRCLE, PRINCETON NJ 08540 |
Paul M Barbas | director | C/O DPL INC., 1065 WOODMAN DRIVE, DAYTON OH 45432 |
Patrick T Harker | director | C/O GOLDMAN SACHS HEDGE FUND STRATEGIES, 32 OLD SLIP, 9TH FLOOR, NEW YORK NY 10005 |
Frank K Ross | director | 1115 30TH STREET NW, WASHINGTON DC 07002 |
George F Maccormack | director | PEPCO HOLDINGS, INC., 701 NINTH STREET, NW, SUITE 1300, WASHINGTON DC 20068 |
Dennis R Wraase | director, officer: Chairman of the Board | C/O NORTHEAST UTILITIES, 300 CADWELL DRIVE, SPRINGFIELD MA 01104 |
Paul H Barry | officer: Sr. VP & CFO | 701 NINTH STREET NW, WASHINGTON DC 20068 |
Thomas S Shaw | officer: Exec. VP & COO | C/O CONECTIV, 800 KING ST PO BOX 231, WILMINGTON DE 19899 |
Cronin Edmund B Jr | director | WRIT, SUITE 800, 6110 EXECUTIVE BOULEVARD, ROCKVILLE MD 20852 |
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