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RWE AG (XTER:RWE) ROC (Joel Greenblatt) % : 33.99% (As of Mar. 2024)


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What is RWE AG 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. RWE AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 33.99%.

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

XTER:RWE' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -13.4   Med: 7.72   Max: 18.32
Current: 18.32

During the past 13 years, RWE AG's highest ROC (Joel Greenblatt) % was 18.32%. The lowest was -13.40%. And the median was 7.72%.

XTER:RWE's ROC (Joel Greenblatt) % is ranked better than
66.09% of 522 companies
in the Utilities - Regulated industry
Industry Median: 11.07 vs XTER:RWE: 18.32

RWE AG's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 51.10% per year.


RWE AG ROC (Joel Greenblatt) % Historical Data

The historical data trend for RWE AG'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.

RWE AG ROC (Joel Greenblatt) % Chart

RWE AG 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 1.86 9.01 10.23 6.43 18.00

RWE AG Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 39.20 13.17 34.06 -7.91 33.99

Competitive Comparison of RWE AG's ROC (Joel Greenblatt) %

For the Utilities - Diversified subindustry, RWE AG'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.


RWE AG's ROC (Joel Greenblatt) % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, RWE AG's ROC (Joel Greenblatt) % distribution charts can be found below:

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



RWE AG 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. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7607 + 2263 + 29055) - (5665 + 0 + 27623)
=5637

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(6388 + 1988 + 28361) - (4628 + 0 + 25634)
=6475

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of RWE AG for the quarter that ended in Mar. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=12280/( ( (28809 + max(5637, 0)) + (31341 + max(6475, 0)) )/ 2 )
=12280/( ( 34446 + 37816 )/ 2 )
=12280/36131
=33.99 %

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


RWE AG  (XTER:RWE) 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.


RWE AG ROC (Joel Greenblatt) % Related Terms

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


RWE AG (XTER:RWE) Business Description

Address
RWE Platz 1, Essen, NW, DEU, 45141
Since the deal with E.On, RWE is refocused on power generation, mostly in Europe. It owns 38 gigawatts of power generation capacity: 28% from lignite and hard coal plants, 37% from gas plants, 40% from renewables including pumped storage and batteries. Besides Germany, RWE's power plants are chiefly located in the United Kingdom, the Netherlands, Turkey, and the United States for many onshore wind farms.
Executives
Helle Valentin Supervisory Board
Ullrich Sierau Supervisory Board
Mag. Dr. H.c. Monika Kircher Supervisory Board
Dr. Hans-peter Keitel Supervisory Board
Dr. Markus Krebber Board of Directors
Dr. Michael Müller Board of Directors
Zvezdana Seeger Board of Directors
Dr. Werner Brandt Supervisory Board
Ute Gerbaulet Supervisory Board
Dr. Erhard Schipporeit Supervisory Board
Hauke Stars Supervisory Board
Dr. Andreas Wagner Supervisory Board
Dr. Rolf Martin Schmitz Board of Directors
Dagmar Mühlenfeld Supervisory Board
Peter Ottmann Supervisory Board

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