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Diversified Royalty (TSX:DIV) ROC (Joel Greenblatt) % : 1,617.60% (As of Sep. 2024)


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What is Diversified Royalty 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. Diversified Royalty's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 1,617.60%.

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

TSX:DIV' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -214.13   Med: 1156.21   Max: 4392.41
Current: 1071.94

During the past 13 years, Diversified Royalty's highest ROC (Joel Greenblatt) % was 4392.41%. The lowest was -214.13%. And the median was 1156.21%.

TSX:DIV's ROC (Joel Greenblatt) % is ranked better than
97.99% of 1047 companies
in the Business Services industry
Industry Median: 21.38 vs TSX:DIV: 1071.94

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


Diversified Royalty ROC (Joel Greenblatt) % Historical Data

The historical data trend for Diversified Royalty'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.

Diversified Royalty ROC (Joel Greenblatt) % Chart

Diversified Royalty 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 895.94 -214.13 4,392.41 2,275.03 1,233.23

Diversified Royalty 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 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 695.64 972.20 809.12 1,002.27 1,617.60

Competitive Comparison of Diversified Royalty's ROC (Joel Greenblatt) %

For the Specialty Business Services subindustry, Diversified Royalty'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.


Diversified Royalty's ROC (Joel Greenblatt) % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Diversified Royalty's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Diversified Royalty 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: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(6.169 + 0 + 1.773) - (3.568 + 0 + 0)
=4.374

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5.759 + 0 + 0.39) - (5.241 + 0 + 0)
=0.908

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Diversified Royalty 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 )
=53.3/( ( (0.667 + max(4.374, 0)) + (0.641 + max(0.908, 0)) )/ 2 )
=53.3/( ( 5.041 + 1.549 )/ 2 )
=53.3/3.295
=1,617.60 %

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.


Diversified Royalty  (TSX:DIV) 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.


Diversified Royalty ROC (Joel Greenblatt) % Related Terms

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Diversified Royalty Business Description

Traded in Other Exchanges
Address
609 Granville Street, Suite 330, P.O. Box 10033, Vancouver, BC, CAN, V7Y 1A1
Diversified Royalty Corp is a multi-royalty company. It is engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America. As a part of the investment, the firm always purchases trademarks of the companies it is going to acquire. Its objective is to acquire predictable, growing royalty streams from a diverse group of multi-location businesses and franchisors.. All of the company's operating revenues are earned from the receipt of royalties and management fees from its Royalty Partners.
Executives
Bryan Christopher Elwin Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Lawrence P. Haber Director, Senior Officer
George Melville Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Johnny Ciampi Director
Lance Tracey Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Maxam Capital Management Ltd. 10% Security Holder