Rainmaker Systems (Rainmaker Systems) ROC (Joel Greenblatt) % : -813.07% (As of Sep. 2014)

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What is Rainmaker Systems 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. Rainmaker Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2014 was -813.07%.

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

VCTL's ROC (Joel Greenblatt) % is not ranked ^*
in the Education industry.
Industry Median: 15.235
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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

Rainmaker Systems ROC (Joel Greenblatt) % Historical Data

The historical data trend for Rainmaker Systems'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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Rainmaker Systems ROC (Joel Greenblatt) % Chart

Rainmaker Systems Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROC (Joel Greenblatt) %

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-91.89

-141.74

-233.42

-138.34

-891.93

Rainmaker Systems Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
ROC (Joel Greenblatt) %	Get a 7-Day Free Trial															-524.40	-937.05	-1,138.28	-985.67	-813.07

Competitive Comparison of Rainmaker Systems's ROC (Joel Greenblatt) %

For the Education & Training Services subindustry, Rainmaker Systems'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.

Rainmaker Systems's ROC (Joel Greenblatt) % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Rainmaker Systems's ROC (Joel Greenblatt) % distribution charts can be found below:

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

Rainmaker Systems 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. 2014 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.786	+	0	+	1.124)	-	(18.512	+	2.182	+	0.643)
=	-18.427

	Working Capital		(Q: Sep. 2014 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.262	+	0	+	1.348)	-	(17.844	+	2.979	+	0.769)
=	-18.982

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Rainmaker Systems for the quarter that ended in Sep. 2014 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2014 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2014		Q: Sep. 2014
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-7.964	/	( ( (1.068 + max(-18.427, 0))	+	(0.891 + max(-18.982, 0)) )	/	2 )
=	-7.964	/	( ( 1.068	+	0.891 )	/	2 )
=	-7.964	/	0.9795
=	-813.07 %

Note: The EBIT data used here is four times the quarterly (Sep. 2014) EBIT data.

Rainmaker Systems (OTCPK:VCTL) 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.

Rainmaker Systems ROC (Joel Greenblatt) % Related Terms

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Rainmaker Systems (Rainmaker Systems) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Rainmaker Systems Inc (OTCPK:VCTL) » Definitions » ROC (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1821 S. Bascom Avenue, Suite 385, Campbell, CA, USA, 95008

Website

http://www.rainmakersystems.com

Rainmaker Systems Inc is a learning management solution provider to organizations of all size across the technology, financial services, biosciences, human resources, and consulting industries, among others.

Executives

Eric Salzman	director	C/O 8X8 INC., 675 CREEKSIDE WAY, CAMPCALL CA 95008
Gary S Briggs	director	117 ADAMS STREET, C/O ETSY, BROOKLYN NY 11201
Timothy Burns	officer: Acting Chief Financial Officer	900 E. HAMILTON AVENUE, SUITE 400, CAMPBELL CA 95008
Charles Geiger	director	C/O CHEGG, INC., 3990 FREEDOM CIRCLE, SANTA CLARA CA 95054
Steve Valenzuela	officer: Chief Financial Officer	1800 GREEN HILLS ROAD, SCOTTS VALLEY CA 95066
Diker Management Llc	10 percent owner	570 LEXINGTON AVENUE, 27TH FLOOR, NEW YORK NY 10022
Marxe Austin W & Greenhouse David M	10 percent owner	C/O SPECIAL SITUATIONS FUNDS, 527 MADISON AVENUE, SUITE 2600, NEW YORK NY 10022
Martin Hernandez	officer: President	C/O WESTELL TECHNOLOGIES, INC. 750 NORTH COMMONS DRIVE AURORA IL 60504
Hebb Donald B Jr	10 percent owner	400 EAST PRATT STREET, SUITE 910, BALTIMORE MD 21202
Timothy T Weglicki	10 percent owner	400 EAST PRATT STREET, SUITE 910, BALTIMORE MD 21202
Phillip A Clough	director, 10 percent owner	400 EAST PRATT STREET, SUITE 910, BALTIMORE MD 21202
Stobo John D Jr	10 percent owner	400 EAST PRATT STREET, SUITE 910, BALTIMORE MD 21202
Abs Capital Partners Iii L P	10 percent owner	1 SOUTH STREET, 25TH FLOOR, BALTIMORE MD 21202
Abs Partners Iii Llc	10 percent owner
Urioste George De	director	2118 WALSH AVENUE, SUITE 210, SANTA CLARA CA 95050

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