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Vertu Motors (Vertu Motors) ROC (Joel Greenblatt) % : 7.84% (As of Feb. 2024)


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What is Vertu Motors 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. Vertu Motors's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2024 was 7.84%.

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

VTMTF' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 6.24   Med: 15.27   Max: 26.02
Current: 13.87

During the past 13 years, Vertu Motors's highest ROC (Joel Greenblatt) % was 26.02%. The lowest was 6.24%. And the median was 15.27%.

VTMTF's ROC (Joel Greenblatt) % is ranked better than
53.78% of 1296 companies
in the Vehicles & Parts industry
Industry Median: 12.345 vs VTMTF: 13.87

Vertu Motors's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 8.90% per year.


Vertu Motors ROC (Joel Greenblatt) % Historical Data

The historical data trend for Vertu Motors'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.

Vertu Motors ROC (Joel Greenblatt) % Chart

Vertu Motors Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.23 10.21 25.70 11.19 14.46

Vertu Motors Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 18.65 17.14 6.96 20.13 7.84

Competitive Comparison of Vertu Motors's ROC (Joel Greenblatt) %

For the Auto & Truck Dealerships subindustry, Vertu Motors'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.


Vertu Motors's ROC (Joel Greenblatt) % Distribution in the Vehicles & Parts Industry

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

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



Vertu Motors 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: Aug. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(114.028 + 882.456 + 6.3330000000001) - (955.173 + 0 + 17.189)
=30.455

Working Capital(Q: Feb. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(95.872 + 962.116 + 10.207) - (986.091 + 0 + 129.226)
=-47.122

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Vertu Motors for the quarter that ended in Feb. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Feb. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Aug. 2023  Q: Feb. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=41.596/( ( (515.483 + max(30.455, 0)) + (515.38 + max(-47.122, 0)) )/ 2 )
=41.596/( ( 545.938 + 515.38 )/ 2 )
=41.596/530.659
=7.84 %

Note: The EBIT data used here is two times the semi-annual (Feb. 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.


Vertu Motors  (OTCPK:VTMTF) 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.


Vertu Motors ROC (Joel Greenblatt) % Related Terms

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Vertu Motors (Vertu Motors) Business Description

Traded in Other Exchanges
Address
Vertu House, 5th Avenue Business Park, Team Valley, Gateshead, Tyne and Wear, GBR, NE11 0XA
Vertu Motors PLC is an automotive retailer in the United Kingdom. The business activity of the group includes selling new cars, motorcycles, commercial vehicles, and used vehicles, together with after-sale services. It operates through various franchise dealerships, such as Volkswagen, Land Rover, Audi, Mercedes-Benz, Jaguar, Kia, Toyota, and many others. The company generates maximum revenue from Used cars.

Vertu Motors (Vertu Motors) Headlines

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