SOLE (Sole Elite Group) ROC (Joel Greenblatt) %: 413.22% (As of Dec. 2014)


What is Sole Elite Group ROC (Joel Greenblatt) %?

Sole Elite Group SOLE ROC (Joel Greenblatt) % is 413.22% as of Dec. 2014.

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. Sole Elite Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2014 was 413.22%.

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

SOLE's ROC (Joel Greenblatt) % is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 8.44
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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

Sole Elite Group  (NAS:SOLE) 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.

Sole Elite Group ROC (Joel Greenblatt) % Related Terms

Sole Elite Group ROC (Joel Greenblatt) % Historical Data

* Premium members only.

The historical data trend for Sole Elite Group'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.

Sole Elite Group ROC (Joel Greenblatt) % Chart

Sole Elite Group Annual Data
Trend Dec12 Dec13 Dec14
ROC (Joel Greenblatt) %
141.25 243.03 413.22

Sole Elite Group Semi-Annual Data
Dec12 Dec13 Dec14
ROC (Joel Greenblatt) % 141.25 243.03 413.22

SOLE vs FORD, JCLY, TLF: ROC (Joel Greenblatt) % Comparison

For the Footwear & Accessories subindustry, Sole Elite Group'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.

Sole Elite Group ROC (Joel Greenblatt) % vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sole Elite Group's ROC (Joel Greenblatt) % distribution charts can be found below:

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


Sole Elite Group 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. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(10.67 + 3.343 + 0.247) - (9.052 + 0 + 0)
=5.208

Working Capital(Q: Dec. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(12.548 + 1.813 + 0.303) - (10.533 + 0 + 0)
=4.131

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Sole Elite Group for the quarter that ended in Dec. 2014 can be restated as:

ROC (Joel Greenblatt) %(Q: Dec. 2014 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2013  Q: Dec. 2014
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=39.607/( ( (5.12 + max(5.208, 0)) + (4.711 + max(4.131, 0)) )/ 2 )
=39.607/( ( 10.328 + 8.842 )/ 2 )
=39.607/9.585
=413.22 %

Note: The EBIT data used here is one times the annual (Dec. 2014) 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.

What does a ROC (Joel Greenblatt) % of 413.22% mean?
Sole Elite Group (SOLE) has a ROC (Joel Greenblatt) % of 413.22% as of Dec. 2014. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Sole Elite Group and its competitors.
Is Sole Elite Group's ROC (Joel Greenblatt) % too high?
Sole Elite Group's current ROC (Joel Greenblatt) % is 413.22%. The Manufacturing - Apparel & Accessories industry median ROC (Joel Greenblatt) % is 8.44. Sole Elite Group's value of 413.22% is 4796% above this industry median.
How does Sole Elite Group's ROC (Joel Greenblatt) % compare to FORD and JCLY?
Sole Elite Group's ROC (Joel Greenblatt) % of 413.22% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROC (Joel Greenblatt) % is 8.44. Sole Elite Group's value of 413.22% is 4796% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC (Joel Greenblatt) % for a Manufacturing - Apparel & Accessories company?
The median ROC (Joel Greenblatt) % among Manufacturing - Apparel & Accessories companies is 8.44, based on 1,060 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sole Elite Group's current ROC (Joel Greenblatt) % of 413.22% is 4796% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Sole Elite Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROC (Joel Greenblatt) % is 8.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sole Elite Group's current ROC (Joel Greenblatt) % is 413.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sole Elite Group stock overvalued right now?
Sole Elite Group (SOLE) has a current ROC (Joel Greenblatt) % of 413.22%. The current ROC (Joel Greenblatt) % is 413.22% and 4796% above the Manufacturing - Apparel & Accessories industry median of 8.44. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Sole Elite Group (SOLE), the current ROC (Joel Greenblatt) % is 413.22% as of Dec. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Sole Elite Group Business Description

Sole Elite Group Ltd was formed on December 10, 2014. The Company, through its subsidiaries, is engaged in the business of designing, producing and selling shoe soles. It has four product lines: RB soles, MD soles, single color IP sole and dual color IP sole products. Its manufacturing facilities in China are located in Jinjiang, Fujian Province, which has a high concentration of footwear industry participants. Sports shoe soles are made of various materials, such as EVA, RB, PU, TPE, and TPU. The core materials of shoe soles are EVA and RB. The principal raw materials used in the production of its products are EVA, rubber, TPU, color dyes and other chemical additives. Its raw materials are sourced suppliers in the PRC located in Quanzhou, Fujian Province, which is close to its production facilities. It sells products to sportswear manufacturers that are based in China, including a number of companies in the athletic wear market, including Li-Ning, 361º, ERKE and Anta. It also sells products to OEM footwear companies for international athletic brands, such as Taiwan Ching Luh, which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour in Asia. Customers use its products as components in the athletic footwear that it sells to end consumers, athletic wear companies and shoe distributors. Its customer includes Fujian Ching Luh Shoes Co., Ltd., which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour. Its direct competition comes from various shoe sole production companies in China, such as Multi Sports Holding Ltd., Victory New Materials Limited Company, Fenghua SoleTech AG, Tai Ya Shoes Co., Ltd., Mao Tai (Fujian) Soles Co., Ltd. and Xing Quan International Sports Holdings Limited. It currently hold four PRC patents. The Company is subject to all China's national and local laws and regulations, including those related to environmental protection, foreign currency, property ownership and taxation.