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ZTE (WBO:FZM) ROC (Joel Greenblatt) % : 50.73% (As of Sep. 2024)


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What is ZTE 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. ZTE's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 50.73%.

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

WBO:FZM' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -59.15   Med: 59.16   Max: 81.42
Current: 62.88

During the past 13 years, ZTE's highest ROC (Joel Greenblatt) % was 81.42%. The lowest was -59.15%. And the median was 59.16%.

WBO:FZM's ROC (Joel Greenblatt) % is ranked better than
91.56% of 2452 companies
in the Hardware industry
Industry Median: 9.67 vs WBO:FZM: 62.88

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


ZTE ROC (Joel Greenblatt) % Historical Data

The historical data trend for ZTE'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.

ZTE ROC (Joel Greenblatt) % Chart

ZTE 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 81.60 50.73 75.92 66.36 71.25

ZTE 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 50.11 41.55 91.05 85.48 50.73

Competitive Comparison of ZTE's ROC (Joel Greenblatt) %

For the Communication Equipment subindustry, ZTE'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.


ZTE's ROC (Joel Greenblatt) % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, ZTE's ROC (Joel Greenblatt) % distribution charts can be found below:

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



ZTE 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)
=(2679.583 + 5245.178 + 1101.256) - (6639.366 + 0 + 1959.113)
=427.538

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2653.645 + 5173.053 + 1209.404) - (6181.295 + 0 + 1786.772)
=1068.035

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of ZTE 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 )
=1427.18/( ( (2028.373 + max(427.538, 0)) + (2102.169 + max(1068.035, 0)) )/ 2 )
=1427.18/( ( 2455.911 + 3170.204 )/ 2 )
=1427.18/2813.0575
=50.73 %

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.


ZTE  (WBO:FZM) 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.


ZTE ROC (Joel Greenblatt) % Related Terms

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ZTE Business Description

Industry
Address
ZTE Plaza, Keji Road South, Hi-Tech Industrial Park, Nanshan District, Guangdong Province, Shenzhen, CHN, 518057
ZTE Corp is a provider of integrated telecommunications and IT solutions with a full range of end-to-end ICT products and solutions integrating design, development, production, sales, and services with a special focus on carriers' networks, government and corporate business, and consumer business. It operates in three segments Carriers' network, Consumer Business, and Government and Corporate Business. It generates a majority of its revenue from equipment supporting carriers' networks. It has a presence in the PRC, Asia, Africa, Europe, and the Americas. It generates the majority of its revenue from the PRC region.

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