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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. Block's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 382.19%.
The historical rank and industry rank for Block's ROC (Joel Greenblatt) % or its related term are showing as below:
During the past 12 years, Block's highest ROC (Joel Greenblatt) % was 269.18%. The lowest was -219.10%. And the median was 5.23%.
Block's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The historical data trend for Block'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.
Block Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial | 197.52 | 57.29 | 59.11 | -3.80 | 61.42 |
Block Quarterly Data | ||||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial | 112.00 | 31.97 | 309.38 | 375.35 | 382.19 |
For the Software - Infrastructure subindustry, Block'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 Software industry and Technology sector, Block's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Block'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: Jun. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (6130.738 | + | 104.728 | + | 2410.507) | - | (8727.532 | + | 208.997 | + | 1780.253) |
= | -2070.809 |
Working Capital | (Q: Sep. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (3748.255 | + | 118.148 | + | 2376.488) | - | (6940.715 | + | 240.715 | + | 1668.14) |
= | -2606.679 |
When net working capital is negative, 0 is used.
So ROC (Joel Greenblatt) % of Block for the quarter that ended in Sep. 2024 can be restated as:
ROC (Joel Greenblatt) % | (Q: Sep. 2024 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Jun. 2024 | Q: Sep. 2024 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | 2060.284 | / | ( ( (528.638 + max(-2070.809, 0)) | + | (549.514 + max(-2606.679, 0)) ) | / | 2 ) |
= | 2060.284 | / | ( ( 528.638 | + | 549.514 ) | / | 2 ) |
= | 2060.284 | / | 539.076 | ||||
= | 382.19 % |
Note: The EBIT data used here is four times the quarterly (Sep. 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.
Block (NYSE:SQ) 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 Block's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Chrysty Esperanza | officer: Interim Counsel Lead | 1955 BROADWAY, SUITE 600, OAKLAND CA 94612 |
Brian Grassadonia | officer: Cash App Lead | 1455 MARKET STREET, SUITE 600, SAN FRANCISCO CA 94103 |
Amrita Ahuja | officer: Chief Financial Officer | 1455 MARKET STREET, SUITE 600, SAN FRANCISCO CA 94103 |
Ajmere Dale | officer: Chief Accounting Officer | 1455 MARKET STREET, SUITE 600, SAN FRANCISCO CA 94103 |
Roelof Botha | director | C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025 |
Alyssa Henry | officer: Seller Lead | 1455 MARKET STREET, SUITE 600, SAN FRANCISCO CA 94103 |
Lawrence Henry Summers | director | JOHN F. KENNEDY SCHOOL OF GOVERNMENT, MAILBOX 8, 79 JFK STREET, CAMBRIDGE MA 02138 |
Neha Narula | director | 1955 BROADWAY, SUITE 600, OAKLAND CA 94612 |
Sivan Whiteley | officer: Gen. Counsel & Corp. Secretary | 1455 MARKET STREET, SUITE 600, SAN FRANCISCO CA 94103 |
Sharon Rothstein | director | C/O YELP INC., 350 MISSION STREET, 10TH FLOOR, SAN FRANCISCO CA 94105 |
Mckelvey James Morgan Jr. | director, 10 percent owner | 2645 SOUTH BAYSHORE #802, MIAMI FL 33133 |
Carter Shawn Corey | director | C/O S. CARTER ENTERPRISES, LLC, 1411 BROADWAY, NEW YORK NY 10018 |
Jack Dorsey | director, 10 percent owner, officer: President, CEO & Chairman | C/O TWITTER INC, 1355 MARKET STREET SUITE 900, SAN FRANCISCO CA 94103 |
Mary G Meeker | director | 2750 SAND HILL ROAD, MENLO PARK CA 94025 |
David A Viniar | director | C/O GOLDMAN SACHS GROUP INC, 200 WEST STREET, NEW YORK NY 10282 |
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