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Rapid7 (Rapid7) ROC (Joel Greenblatt) % : 78.63% (As of Dec. 2023)


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What is Rapid7 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. Rapid7's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 78.63%.

The historical rank and industry rank for Rapid7's ROC (Joel Greenblatt) % or its related term are showing as below:

RPD' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -625.04   Med: -239.87   Max: -62.57
Current: -75.25

During the past 12 years, Rapid7's highest ROC (Joel Greenblatt) % was -62.57%. The lowest was -625.04%. And the median was -239.87%.

RPD's ROC (Joel Greenblatt) % is ranked worse than
71.09% of 2760 companies
in the Software industry
Industry Median: 13.15 vs RPD: -75.25

Rapid7's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 18.20% per year.


Rapid7 ROC (Joel Greenblatt) % Historical Data

The historical data trend for Rapid7'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.

Rapid7 ROC (Joel Greenblatt) % Chart

Rapid7 Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -62.57 -62.71 -95.66 -82.09 -73.48

Rapid7 Quarterly Data
Mar19 Jun19 Sep19 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 Premium Member Only Premium Member Only Premium Member Only -25.08 -66.66 -212.25 -72.18 78.63

Competitive Comparison of Rapid7's ROC (Joel Greenblatt) %

For the Software - Infrastructure subindustry, Rapid7'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.


Rapid7's ROC (Joel Greenblatt) % Distribution in the Software Industry

For the Software industry and Technology sector, Rapid7's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Rapid7's ROC (Joel Greenblatt) % falls into.



Rapid7 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)
=(137.69 + 0 + 75.996) - (72.339 + 421.898 + 0.88799999999998)
=-281.439

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(164.862 + 0 + 86.415) - (100.301 + 455.503 + 0.53600000000006)
=-305.063

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Rapid7 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 )
=74.72/( ( (95.724 + max(-281.439, 0)) + (94.335 + max(-305.063, 0)) )/ 2 )
=74.72/( ( 95.724 + 94.335 )/ 2 )
=74.72/95.0295
=78.63 %

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.


Rapid7  (NAS:RPD) 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.


Rapid7 ROC (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Rapid7's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Rapid7 (Rapid7) Business Description

Industry
Traded in Other Exchanges
Address
120 Causeway Street, Boston, MA, USA, 02114
Founded in 2000, Rapid7 is a cybersecurity company that began providing vulnerability management solutions. It has, however, expanded its portfolio to provide extended detection and response, or XDR; security information and event management, or SIEM; cloud security, threat intelligence, and application security; and security orchestration, automation, and response, or SOAR. The Boston-based company went public in 2015.
Executives
Andrew F. Burton officer: Chief Operating Officer 500 UNICORN PARK DRIVE, WOBURN MA 01801
Marc Evan Brown director C/O RAPID7, INC., 100 SUMMER STREET, BOSTON MA 02110
Thomas Corey E. director, officer: President and CEO C/O RAPID7, INC., 100 SUMMER STREET, BOSTON MA 02110
Timothy M Adams officer: Chief Financial Officer 311 ARSENAL STREET, WATERTOWN MA 02472
Thomas E Schodorf director C/O SPLUNK INC, 250 BRANNAN STREET, SAN FRANCISCO CA 94107
Christina Luconi officer: Chief People Officer C/O RAPID7, INC., 100 SUMMER STREET, BOSTON MA 02110
Peter Kaes officer: SVP, General Counsel C/O RAPID7, INC., 100 SUMMER STREET, BOSTON MA 02110
Benjamin Holzman director, 10 percent owner C/O BAIN CAPITAL VENTURES, 335 BRYANT STREET, PALO ALTO CA 94301
Jeffrey Kalowski officer: Chief Financial Officer 10 MAGUIRE ROAD, BUILDING 1, SUITE 125, LEXINGTON MA 02421
Lee David Weiner officer: Chief Product Officer C/O RAPID7, INC., 100 SUMMER STREET, BOSTON MA 02110
Michael J Berry director C/O INFORMATICA CORPORATION, 2100 SEAPORT BOULEVARD, REDWOOD CITY CA 94063
Judy Bruner director C/O SANDISK CORPORATION, 601 MCCARTHY BLVD., MILPITAS CA 95035
Reeny Sondhi director C/O RAPID7, INC., 120 CAUSEWAY STREET, BOSTON MA 02114
Christina Kosmowski director C/O RAPID7, INC., 120 CAUSEWAY STREET, BOSTON MA 02114
Timothy P Mcadam director, 10 percent owner, other: May be part of a 13(d) group 250 MIDDLEFIELD RD, MENLO PARK CA 94025

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