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PowerSchool Holdings (PowerSchool Holdings) ROC (Joel Greenblatt) % : 113.84% (As of Dec. 2023)


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What is PowerSchool Holdings 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. PowerSchool Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 113.84%.

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

PWSC' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -39.98   Med: -3.53   Max: 158.96
Current: 158.96

During the past 5 years, PowerSchool Holdings's highest ROC (Joel Greenblatt) % was 158.96%. The lowest was -39.98%. And the median was -3.53%.

PWSC's ROC (Joel Greenblatt) % is ranked better than
82.39% of 2760 companies
in the Software industry
Industry Median: 13.15 vs PWSC: 158.96

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


PowerSchool Holdings ROC (Joel Greenblatt) % Historical Data

The historical data trend for PowerSchool 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.

* Premium members only.

PowerSchool Holdings ROC (Joel Greenblatt) % Chart

PowerSchool Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
-37.40 114.02 -39.98 -3.53 150.75

PowerSchool Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -94.70 -23.04 307.86 260.71 113.84

Competitive Comparison of PowerSchool Holdings's ROC (Joel Greenblatt) %

For the Software - Application subindustry, PowerSchool 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.


PowerSchool Holdings's ROC (Joel Greenblatt) % Distribution in the Software Industry

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

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



PowerSchool Holdings 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: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(134.621 + 0 + 37.84) - (78.145 + 407.956 + 33.338)
=-346.978

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(76.618 + 0 + 40.449) - (86.825 + 373.672 + 43.075)
=-386.505

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of PowerSchool Holdings for the quarter that ended in Dec. 2023 can be restated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=25.172/( ( (23.222 + max(-346.978, 0)) + (21.001 + max(-386.505, 0)) )/ 2 )
=25.172/( ( 23.222 + 21.001 )/ 2 )
=25.172/22.1115
=113.84 %

Note: The EBIT data used here is four times the quarterly (Dec. 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.


PowerSchool Holdings  (NYSE:PWSC) 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.


PowerSchool Holdings ROC (Joel Greenblatt) % Related Terms

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


PowerSchool Holdings (PowerSchool Holdings) Business Description

Traded in Other Exchanges
N/A
Address
150 Parkshore Drive, Folsom, CA, USA, 95630
PowerSchool Holdings Inc is a provider of cloud-based software to the K-12 education market. Its cloud-based technology platform helps schools and districts efficiently manage state reporting and related compliance, special education, finance, HR, talent, registration, attendance, funding, learning, instruction, grading, college and career readiness, assessments, and analytics in one unified platform. The Company's integrated technology approach streamlines operations aggregate disparate data sets and develops insights using predictive modeling and machine learning. It earns revenue from subscription offerings, perpetual software licenses, maintenance and support services, and professional services.
Executives
Eric Ryan Shander officer: Chief Financial Officer 100 EAST DAVIE STREET, RALEIGH NC 27601
Hardeep Gulati director, officer: Chief Executive Officer C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Devendra Singh officer: Chief Technology Officer C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Shivani Stumpf officer: CPO C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DR., FOLSOM CA 95630
Anthony Kender officer: Chief Revenue Officer C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DR, FOLSOM CA 95630
Fred Studer officer: Chief Marketing Officer C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DR, FOLSOM CA 95630
Zach Levitt director C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DR., FOLSOM CA 95630
Marcy Daniel officer: Chief Product Officer C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Angelina Hendraka officer: Chief Accounting Officer C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Michael C. Bisignano officer: Chief Legal Officer 520 MADISON AVENUE, NEW YORK NY 10022
Judy Cotte director C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Anthony Joseph Miller officer: Chief Marketing Officer C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Maulik Datanwala officer: Chief Operating Officer C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630
Onex Partners Iv Gp Ltd director, 10 percent owner C/O WALKERS CORPORATE LIMITED, CAYMAN CORPORATE CENTRE, 27 HOSPITAL RD., GEORGE TOWN, GRAND CAYMAN E9 KY1-9008
Craig Greenseid officer: Chief Revenue Officer C/O POWERSCHOOL HOLDINGS, INC., 150 PARKSHORE DRIVE, FOLSOM CA 95630