GURUFOCUS.COM » STOCK LIST » Technology » Software » Genpact Ltd (NYSE:G) » Definitions » ROC (Joel Greenblatt) %

Genpact (Genpact) ROC (Joel Greenblatt) %

: 83.06% (As of Dec. 2023)
View and export this data going back to 2007. Start your Free Trial

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. Genpact's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 83.06%.

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

G' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 52.34   Med: 75.49   Max: 86.84
Current: 81.47

During the past 13 years, Genpact's highest ROC (Joel Greenblatt) % was 86.84%. The lowest was 52.34%. And the median was 75.49%.

G's ROC (Joel Greenblatt) % is ranked better than
71.66% of 2763 companies
in the Software industry
Industry Median: 12.83 vs G: 81.47

Genpact's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 4.40% per year.


Genpact ROC (Joel Greenblatt) % Historical Data

The historical data trend for Genpact'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.

Genpact Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 61.03 52.34 72.72 77.05 86.84

Genpact Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC (Joel Greenblatt) % 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 Premium Member Only Premium Member Only Premium Member Only 78.25 79.69 76.76 81.44 83.06

Competitive Comparison

For the Information Technology Services subindustry, Genpact'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.


Genpact ROC (Joel Greenblatt) % Distribution

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

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



Genpact 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. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1054.491 + 0 + 257.818) - (367.707 + 114.444 + 353.626)
=476.532

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1116.273 + 0 + 174.112) - (307.597 + 112.435 + 394.508)
=475.845

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Genpact for the quarter that ended in Dec. 2023 can be restated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=707.028/( ( (356.341 + max(476.532, 0)) + (393.736 + max(475.845, 0)) )/ 2 )
=707.028/( ( 832.873 + 869.581 )/ 2 )
=707.028/851.227
=83.06 %

Note: The EBIT data used here is four times the quarterly (Dec. 2023) 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.


Genpact  (NYSE:G) 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.


Genpact ROC (Joel Greenblatt) % Related Terms

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


Genpact (Genpact) Business Description

Industry
Traded in Other Exchanges
Address
22 Victoria Street, Canon's Court, Hamilton, BMU, HM 12
Genpact Ltd is a provider of business process management services. Clients are industry verticals and operate in banking and financial services, insurance, capital markets, consumer product goods, life sciences, infrastructure, manufacturing and services, healthcare, and high-tech. Genpact's services include aftermarket, direct procurement, risk and compliance, human resources, IT, industrial solutions, collections, finance and accounting, and media services. Genpact's end market by revenue is India. The company is a General Electric spin-off, which is still a large source of revenue for Genpact.
Executives
Kathryn Vanpelt Stein officer: Senior Vice President 40 WEST 24TH STREET, APT 3N, NEW YORK NY 10010
N. V. Tyagarajan officer: Executive Vice President 825 EIGHTH AVENUE, NEW YORK NY 10019
Michael Hal Weiner officer: Chief Financial Officer C/O NGHC, 59 MAIDEN LANE, 38TH FLOOR, NEW YORK NY 10038
Donald J Klunk officer: Chief Accounting Officer 3585 GRAY FOX DR, CHALFONT PA 18914
Piyush Mehta officer: Senior VP , Human Resources 825 EIGHTH AVENUE, NEW YORK NY 10019
James C. Madden director 825 EIGHTH AVENUE, NEW YORK NY 10019
Cecelia Morken director 26025 MUREAU ROAD, CALABASAS CA 91302
Heather White officer: SVP & General Counsel 1155 AVENUE OF THE AMERICAS, 4TH FLOOR, NEW YORK X1 10036
Stacey Cartwright director 34 ROEDEAN CRESCENT, LONDON X0 SW15 5JU
Brian Mark Stevens director 25 HOOPER HILL RD., NEW BOSTON NH 03070
Ajay Agrawal director 105 ROBERT STREET, TORONTO A6 M5S 2K5
Tamara Franklin director 107 STONE CLIFF ROAD, PRINCETON NJ 08540
Balkrishan Kalra officer: Senior Vice President 5 MARION AVENUE, SHORT HILLS NJ 07078
Carol Lindstrom director 5994 SILVERADO TRAIL, NAPA CA 94558
Darren Saumur officer: Senior Vice President 125 DUPONT STREET, TORONTO A6 M5R 1V4