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VRT (Vertiv Holdings Co) ROC (Joel Greenblatt) % : 75.59% (As of Dec. 2024)


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What is Vertiv Holdings Co 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. Vertiv Holdings Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 75.59%.

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

VRT' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -14.77   Med: 25.01   Max: 61.51
Current: 61.51

During the past 9 years, Vertiv Holdings Co's highest ROC (Joel Greenblatt) % was 61.51%. The lowest was -14.77%. And the median was 25.01%.

VRT's ROC (Joel Greenblatt) % is ranked better than
91.68% of 3004 companies
in the Industrial Products industry
Industry Median: 12.41 vs VRT: 61.51

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


Vertiv Holdings Co ROC (Joel Greenblatt) % Historical Data

The historical data trend for Vertiv Holdings Co'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.

Vertiv Holdings Co ROC (Joel Greenblatt) % Chart

Vertiv Holdings Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only -14.77 27.83 22.18 41.54 54.11

Vertiv Holdings Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 53.17 6.55 88.12 93.79 75.59

Competitive Comparison of Vertiv Holdings Co's ROC (Joel Greenblatt) %

For the Electrical Equipment & Parts subindustry, Vertiv Holdings Co'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.


Vertiv Holdings Co's ROC (Joel Greenblatt) % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Vertiv Holdings Co's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Vertiv Holdings Co's ROC (Joel Greenblatt) % falls into.



Vertiv Holdings Co 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: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2328.5 + 1255.2 + 312.2) - (1550 + 1016.2 + 860.6)
=469.1

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2362.7 + 1244.4 + 267.1) - (1967 + 1063.3 + 0)
=843.9

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Vertiv Holdings Co for the quarter that ended in Dec. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Dec. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2024  Q: Dec. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1103.6/( ( (779.8 + max(469.1, 0)) + (827.2 + max(843.9, 0)) )/ 2 )
=1103.6/( ( 1248.9 + 1671.1 )/ 2 )
=1103.6/1460
=75.59 %

Note: The EBIT data used here is four times the quarterly (Dec. 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.


Vertiv Holdings Co  (NYSE:VRT) 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.


Vertiv Holdings Co ROC (Joel Greenblatt) % Related Terms

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


Vertiv Holdings Co Business Description

Traded in Other Exchanges
Address
505 N. Cleveland Avenue, Westerville, OH, USA, 43082
Vertiv has roots tracing back to 1946 when its founder, Ralph Liebert, developed an air-cooling system for mainframe data rooms. As computers started making their way into commercial applications in 1965, Liebert developed one of the first computer room air conditioning, or CRAC, units, enabling the precise control of temperature and humidity. The firm has slowly expanded its data center portfolio through internal product development and the acquisition of thermal and power management products like condensers, busways, and switches. Vertiv has global operations today; its products can be found in data centers in most regions throughout the world.
Executives
Anders Karlborg officer: EVP, Man., Logistics and Op Ex 505 N. CLEVELAND AVE., WESTERVILLE OH 43082
Stephen Liang officer: President of Asia Pacific C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Jan Van Dokkum director ONE FINANCIAL PLAZA, UNITED TECHNOLOGIES CORP, HATTFORD CT 06101
Doherty Philip O' officer: Managing Director, E+I 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Anand Sanghi officer: Pres. AU, NZ, SE Asia & India C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Steven Reinemund director 700 ANDERSON HILL RD, PURCHASE NY 10577
Jakki L. Haussler director 221 EAST FOURTH STREET, CINCINNATI OH 45202
Robin L Washington director 333 LAKESIDE DRIVE, FOSTER CITY CA 94404
Karsten Winther officer: President, EMEA 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Roger Fradin director C/O MSC INDUSTRIAL DIRECT CO., INC., 75 MAXESS ROAD, MELVILLE NY 11747
Yibin Edward Cui officer: President, North Asia 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Scott Cripps officer: Chief Accounting Officer C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Vpe Holdings, Llc director, 10 percent owner 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Platinum Equity Partners Iii, Llc director C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Paul Ryan officer: Chief Procurement Officer 505 N. CLEVELAND AVE., WESTERVILLE OH 43082