GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Solution Financial Inc (TSX:SFI) » Definitions » ROC (Joel Greenblatt) %

Solution Financial (TSX:SFI) ROC (Joel Greenblatt) % : 66.64% (As of Jan. 2025)


View and export this data going back to 2007. Start your Free Trial

What is Solution Financial 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. Solution Financial's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2025 was 66.64%.

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

TSX:SFI' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -13.72   Med: 6.15   Max: 64.21
Current: 64.21

During the past 13 years, Solution Financial's highest ROC (Joel Greenblatt) % was 64.21%. The lowest was -13.72%. And the median was 6.15%.

TSX:SFI's ROC (Joel Greenblatt) % is ranked better than
95.11% of 1310 companies
in the Vehicles & Parts industry
Industry Median: 12.405 vs TSX:SFI: 64.21

Solution Financial's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 39.80% per year.


Solution Financial ROC (Joel Greenblatt) % Historical Data

The historical data trend for Solution Financial'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.

Solution Financial ROC (Joel Greenblatt) % Chart

Solution Financial Annual Data
Trend Sep15 Sep16 Sep17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.22 6.02 8.58 6.15 41.23

Solution Financial Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 27.59 30.60 105.47 70.88 66.64

Competitive Comparison of Solution Financial's ROC (Joel Greenblatt) %

For the Auto & Truck Dealerships subindustry, Solution Financial'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.


Solution Financial's ROC (Joel Greenblatt) % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Solution Financial's ROC (Joel Greenblatt) % distribution charts can be found below:

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


;
;

Solution Financial 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: Oct. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.273 + 0.444 + 1.594) - (0.675 + 0.534 + 5.607)
=-4.505

Working Capital(Q: Jan. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.294 + 0.613 + 1.74) - (0.502 + 0.478 + 3.905)
=-2.238

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Solution Financial for the quarter that ended in Jan. 2025 can be restated as:

ROC (Joel Greenblatt) %(Q: Jan. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2024  Q: Jan. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=0.868/( ( (1.509 + max(-4.505, 0)) + (1.096 + max(-2.238, 0)) )/ 2 )
=0.868/( ( 1.509 + 1.096 )/ 2 )
=0.868/1.3025
=66.64 %

Note: The EBIT data used here is four times the quarterly (Jan. 2025) 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.


Solution Financial  (TSX:SFI) 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.


Solution Financial ROC (Joel Greenblatt) % Related Terms

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


Solution Financial Business Description

Traded in Other Exchanges
Address
8680 Cambie Road, Unit 137, Richmond, BC, CAN, V6X 4K1
Solution Financial Inc. specializes in sourcing and leasing solutions for luxury and exotic vehicles, yachts and other high value assets in Canada. The Company operates through retail sales, leases, and financing for automotive vehicles, boats, and commercial equipment and out of three locations being Richmond, British Columbia, Calgary, Alberta and Vaughan, Ontario. The company generates majority of its revenue from sale of vehicles.
Executives
Bryan Pang 10% Security Holder, Director, Senior Officer
John Randall Smyth Director
Sean Hodgins Director, Senior Officer
Kerry Don Meier Director
Vincent Ka Ho Lau Director, Senior Officer

Solution Financial Headlines

No Headlines