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WaterPure International (WaterPure International) ROC (Joel Greenblatt) % : 0.00% (As of Mar. 2011)


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What is WaterPure International 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. WaterPure International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2011 was 0.00%.

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

WPUR's ROC (Joel Greenblatt) % is not ranked *
in the Industrial Products industry.
Industry Median: 13.34
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

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


WaterPure International ROC (Joel Greenblatt) % Historical Data

The historical data trend for WaterPure International'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.

WaterPure International ROC (Joel Greenblatt) % Chart

WaterPure International Annual Data
Trend Jun06 Jun07 Jun08 Jun09 Jun10
ROC (Joel Greenblatt) %
-110.34 -1,884.48 - - -

WaterPure International Quarterly Data
Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11
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 - - - - -

Competitive Comparison of WaterPure International's ROC (Joel Greenblatt) %

For the Specialty Industrial Machinery subindustry, WaterPure International'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.


WaterPure International's ROC (Joel Greenblatt) % Distribution in the Industrial Products Industry

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

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



WaterPure International 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: Dec. 2010 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.005 + 0.122 + 0) - (0.795 + 0.014 + 0.032)
=-0.714

Working Capital(Q: Mar. 2011 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.003 + 0.072 + 0.001) - (1.346 + 0.014 + 0.057)
=-1.341

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of WaterPure International for the quarter that ended in Mar. 2011 can be restated as:

ROC (Joel Greenblatt) %(Q: Mar. 2011 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2010  Q: Mar. 2011
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-1.26/( ( (0 + max(-0.714, 0)) + (0 + max(-1.341, 0)) )/ 1 )
=-1.26/( ( 0 + 0 )/ 1 )
=-1.26/0
= %

Note: The EBIT data used here is four times the quarterly (Mar. 2011) 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.


WaterPure International  (OTCPK:WPUR) 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.


WaterPure International ROC (Joel Greenblatt) % Related Terms

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WaterPure International (WaterPure International) Business Description

Traded in Other Exchanges
N/A
Address
13155 Noel Road, Suite 900, Dallas, TX, USA, 75240
WaterPure International Inc is a development stage company engaged in manufacturing and marketing atmospheric water generators to the small office, home office, and consumer markets in the United States and internationally. Its products include a POE system, Controller, Piping system among others.