Asia Cork (STU:6A3) ROC (Joel Greenblatt) % : 40.30% (As of Dec. 2010)

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What is Asia Cork 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. Asia Cork's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2010 was 40.30%.

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

STU:6A3's ROC (Joel Greenblatt) % is not ranked ^*
in the Furnishings, Fixtures & Appliances industry.
Industry Median: 12.88
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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

Asia Cork ROC (Joel Greenblatt) % Historical Data

The historical data trend for Asia Cork'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.

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Asia Cork ROC (Joel Greenblatt) % Chart

Asia Cork Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

ROC (Joel Greenblatt) %

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9.77

25.28

36.90

33.01

40.30

Asia Cork Semi-Annual Data
	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10
ROC (Joel Greenblatt) %	Get a 7-Day Free Trial			9.77	25.28	36.90	33.01	40.30

Competitive Comparison of Asia Cork's ROC (Joel Greenblatt) %

For the Furnishings, Fixtures & Appliances subindustry, Asia Cork'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.

Asia Cork's ROC (Joel Greenblatt) % Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Asia Cork's ROC (Joel Greenblatt) % distribution charts can be found below:

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

Asia Cork 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. 2009 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(3.551	+	4.096	+	1.786)	-	(1.539	+	0	+	0.023)
=	7.871

	Working Capital		(Q: Dec. 2010 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(5.414	+	6.302	+	2.572)	-	(2.275	+	0	+	0.099)
=	11.914

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Asia Cork for the quarter that ended in Dec. 2010 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2010 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2009		Q: Dec. 2010
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	4.648	/	( ( (1.605 + max(7.871, 0))	+	(1.678 + max(11.914, 0)) )	/	2 )
=	4.648	/	( ( 9.476	+	13.592 )	/	2 )
=	4.648	/	11.534
=	40.30 %

Note: The EBIT data used here is one times the annual (Dec. 2010) EBIT data.

Asia Cork (STU:6A3) 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.

Asia Cork ROC (Joel Greenblatt) % Related Terms

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Asia Cork (STU:6A3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Asia Cork Inc (STU:6A3) » Definitions » ROC (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

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Address

Website

Asia Cork Incorporated formerly known as Hankersen International Corp., was incorporated under the laws of the State of Delaware on August 1, 1996. On July 11, 2008, the Company's wholly owned subsidiary, Asia Cork Inc., was merged into its parent, the Company, in order to change the name of the Company, after approval by the Board of Directors of the Company according to the Delaware General Corporation Law. As permitted by Delaware General Corporation Law, the Company assumed the name of its wholly owned subsidiary following the merger and now operates under the name Asia Cork Inc. The Company through its subsidiaries is engaged in the development, manufacture and distribution of cork products including cork wood floor, wall and decorating materials. It produces approximately seven series of cork flooring planks with over approximately 50 different patterns, colors and granules. It produces approximately 16 types of cork wallboard and approximately three types of cork art crafts with different patterns. It products include Cork Granule, Cork Sheet and Roll, Glue-down Floor, Floating Floor, Cork Wallboard and Basic Board. All these products utilize staining technology to create different colors. Its cork art crafts include ornaments and decorations. Wallboard could also be used as decorative material. It also sells semi-finished cork products to other manufacturers which use cork granule and sheet roll as raw materials. Cork granule comes in varies sizes and is the early stage of cork material processing. It sells its products directly to customers in China through its own sales team, and it distributes its products to customers overseas through unrelated distributors and sales agents. The countries in which its products were distributed through these sales agents include India, the United States of America, Germany and Japan. The Company competes with Portugal cork manufacturers as its major product is cork stopper used for wine bottles, which usually accounts for one third of its total sales and even higher percentage of profit. Domestically, the Company competes with local mid-sized cork manufacturers. These companies' products are semi-finished cork boards, sheets and roles.

Asia Cork (STU:6A3) Headlines

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