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IPH (ASX:IPH) ROC (Joel Greenblatt) % : 73.66% (As of Jun. 2024)


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What is IPH 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. IPH's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 73.66%.

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

ASX:IPH' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 63.94   Med: 146.87   Max: 1130.87
Current: 63.94

During the past 10 years, IPH's highest ROC (Joel Greenblatt) % was 1130.87%. The lowest was 63.94%. And the median was 146.87%.

ASX:IPH's ROC (Joel Greenblatt) % is ranked better than
74.34% of 1064 companies
in the Business Services industry
Industry Median: 20.99 vs ASX:IPH: 63.94

IPH's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -15.60% per year.


IPH ROC (Joel Greenblatt) % Historical Data

The historical data trend for IPH'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.

IPH ROC (Joel Greenblatt) % Chart

IPH Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 105.66 77.69 83.51 82.24 65.88

IPH Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 88.96 114.25 100.64 51.80 73.66

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

For the Specialty Business Services subindustry, IPH'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.


IPH's ROC (Joel Greenblatt) % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, IPH's ROC (Joel Greenblatt) % distribution charts can be found below:

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



IPH 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)
=(149.993 + 0 + 41.461) - (43.568 + 10.029 + 18.929)
=118.928

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(163.6 + 0 + 41.4) - (47.8 + 12.8 + 28.7)
=115.7

When net working capital is negative, 0 is used.

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

ROC (Joel Greenblatt) %(Q: Jun. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Jun. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=137.376/( ( (70.875 + max(118.928, 0)) + (67.5 + max(115.7, 0)) )/ 2 )
=137.376/( ( 189.803 + 183.2 )/ 2 )
=137.376/186.5015
=73.66 %

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


IPH  (ASX:IPH) 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.


IPH ROC (Joel Greenblatt) % Related Terms

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IPH Business Description

Traded in Other Exchanges
Address
201 Sussex Street, Level 24, Tower 2, Darling Park, Sydney, NSW, AUS, 2000
IPH provides intellectual property services through its subsidiaries: Spruson and Ferguson, Smart & Biggar, Robic, Pizzeys, Griffith Hack, Applied Marks, and AJ Park. These services include patent filing, prosecution, enforcement, management, design, trademarks, and more. The company's diverse client base consists of multinationals, public sector research organizations, and local businesses across various industries like healthcare, finance, engineering, and technology. Revenue streams mainly consist of professional fees (fixed) and volume-based fees (linked to the quantity of work performed). About 70% of revenue is derived from pre-existing work in the system, while 30% comes from new patent applications.

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