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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. PTC Therapeutics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was -178.58%.
The historical rank and industry rank for PTC Therapeutics's ROC (Joel Greenblatt) % or its related term are showing as below:
During the past 13 years, PTC Therapeutics's highest ROC (Joel Greenblatt) % was -132.23%. The lowest was -1843.38%. And the median was -632.60%.
PTC Therapeutics's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 26.90% per year.
The historical data trend for PTC Therapeutics'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.
PTC Therapeutics 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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-451.62 | -348.30 | -325.62 | -320.29 | -132.23 |
PTC Therapeutics 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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-251.95 | -96.68 | -110.05 | -183.53 | -178.58 |
For the Biotechnology subindustry, PTC Therapeutics'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 Biotechnology industry and Healthcare sector, PTC Therapeutics's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where PTC Therapeutics'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) |
= | (199.976 | + | 35.671 | + | 32.546) | - | (224.355 | + | 0 | + | 369.602) |
= | -325.764 |
Working Capital | (Q: Dec. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (158.554 | + | 23.194 | + | 44.087) | - | (184.073 | + | 5.505 | + | 120.219) |
= | -83.962 |
When net working capital is negative, 0 is used.
So ROC (Joel Greenblatt) % of PTC Therapeutics 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 ) |
= | -214.556 | / | ( ( (122.64 + max(-325.764, 0)) | + | (117.655 + max(-83.962, 0)) ) | / | 2 ) |
= | -214.556 | / | ( ( 122.64 | + | 117.655 ) | / | 2 ) |
= | -214.556 | / | 120.1475 | ||||
= | -178.58 % |
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.
PTC Therapeutics (NAS:PTCT) 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 PTC Therapeutics's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Eric Pauwels | officer: Chief Business Officer | 550 HILLS DRIVE, BEDMINSTER NJ 07921 |
Stephanie Okey | director | C/O ALBIREO PHARMA, INC., 10 POST OFFICE SQUARE, SUITE 502 SOUTH, BOSTON MA 02109 |
Mark Elliott Boulding | officer: Exec. VP and CLO | C/O PTC THERAPEUTICS, INC., 100 CORPORATE COURT, SOUTH PLAINFIELD NJ 07080 |
Allan Steven Jacobson | director | PTC THERAPEUTICS, INC., 100 CORPORATE COURT, SOUTH PLAINFIELD NJ 07080 |
Neil Gregory Almstead | officer: EVP Research Pharma Ops & Tech | C/O PTC THERAPEUTICS, INC., 100 CORPORATE COURT, SOUTH PLAINFIELD NJ 07080 |
Pierre Gravier | officer: CHIEF FINANCIAL OFFICER | C/O PTC THERAPEUTICS, INC., 100 CORPORATE COURT, SOUTH PLAINFIELD NJ 07080 |
Matthew B. Klein | officer: Chief Development Officer | C/O PTC THERAPEUTICS, INC., 100 CORPORATE COURT, SOUTH PLAINFIELD NJ 07080 |
Christine Marie Utter | officer: Principal Financial Officer | C/O PTC THERAPEUTICS, INC., 100 CORPORATE COURT, SOUTH PLAINFIELD NJ 07080 |
Lee Scott Golden | officer: Chief Medical Officer | 17199 N. LAUREL PARK DRIVE, SUITE 401, LIVONIA MI 48152 |
Jerome B Zeldis | director | 8767 E. VIA DE VENTURA, SUITE 190, SCOTTSDALE AZ 85258 |
Michael Schmertzler | director | 110 WASHINGTON STREET, SUITE 1300, CONSHOHOCKEN PA 19428 |
Alethia Young | director | C/O GRAPHITE BIO, INC., 201 HASKINS WAY, SUITE 210, SOUTH SAN FRANCISCO CA 94080 |
Bell William F. Jr. | director | C/O PTC THERAPEUTICS, INC., 100 CORPORATE COURT, SOUTH PLAINFIELD NJ 07080 |
Emma Reeve | director | C/O PAREXEL INTERNATIONAL CORPORATION, 195 WEST STREET, WALTHAM MA 02451 |
David P Southwell | director | C/O INOTEK PHARMACEUTICALS CORPORATION, 91 HARTWELL AVENUE, LEXINGTON MA 02421 |
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