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Ikanos Communications (FRA:I9J1) ROC (Joel Greenblatt) % : -300.84% (As of Jun. 2015)


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What is Ikanos Communications 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. Ikanos Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2015 was -300.84%.

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

FRA:I9J1' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -308.79   Med: -159.81   Max: 21.5
Current: -308.79

During the past 13 years, Ikanos Communications's highest ROC (Joel Greenblatt) % was 21.50%. The lowest was -308.79%. And the median was -159.81%.

FRA:I9J1's ROC (Joel Greenblatt) % is not ranked
in the Hardware industry.
Industry Median: 9.57 vs FRA:I9J1: -308.79

Ikanos Communications's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 12.00% per year.


Ikanos Communications ROC (Joel Greenblatt) % Historical Data

The historical data trend for Ikanos Communications'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.

Ikanos Communications ROC (Joel Greenblatt) % Chart

Ikanos Communications Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -165.98 -29.99 -81.69 -158.61 -267.79

Ikanos Communications Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
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 -475.36 -350.09 -278.17 -300.90 -300.84

Competitive Comparison of Ikanos Communications's ROC (Joel Greenblatt) %

For the Communication Equipment subindustry, Ikanos Communications'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.


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

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

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



Ikanos Communications 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: Mar. 2015 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(10.5 + 1.956 + 2.414) - (11.107 + 0.98 + 0.00099999999999767)
=2.782

Working Capital(Q: Jun. 2015 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(9.592 + 1.774 + 1.602) - (12.596 + 1.299 + 0)
=-0.927

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Ikanos Communications for the quarter that ended in Jun. 2015 can be restated as:

ROC (Joel Greenblatt) %(Q: Jun. 2015 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2015  Q: Jun. 2015
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-42.208/( ( (12.851 + max(2.782, 0)) + (12.427 + max(-0.927, 0)) )/ 2 )
=-42.208/( ( 15.633 + 12.427 )/ 2 )
=-42.208/14.03
=-300.84 %

Note: The EBIT data used here is four times the quarterly (Jun. 2015) 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.


Ikanos Communications  (FRA:I9J1) 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.


Ikanos Communications ROC (Joel Greenblatt) % Related Terms

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


Ikanos Communications (FRA:I9J1) Business Description

Traded in Other Exchanges
N/A
Address
Ikanos Communications Inc was incorporated in the State of California in April 1999 and reincorporated in the State of Delaware in September 2005. The Company is a provider of advanced broadband semiconductor products and software for delivering high speed broadband solutions to the digital home. The Company's broadband multi-mode and digital subscriber line processors and other semiconductor offerings power carrier infrastructure and customer premise equipment for network equipment manufacturers who, in turn, serve telecommunications service providers. The Company has developed programmable, scalable chip architectures, which form the foundation for deploying and delivering multi-play services. This communications processor architecture with wire-speed packet processing capabilities enables high-performance end user devices capable of distributing advanced services in the home. These products support telecommunications services providers' multi-play deployment plans to the digital home while keeping their capital and operating expenditures low and have been deployed by service providers in Asia, Europe, and North and South America. The Company outsources all of its semiconductor fabrication, assembly, and test functions, which allows focusing on the design, development, sales, and marketing of its products and reduces the level of its capital investment. It offers multiple product lines that are designed to address different segments of the communications processor and the high-speed broadband DSL markets. The Company currently competes or expects to compete with, among others, Alcatel-Lucent, Broadcom Corporation, Cavium, Inc., Cortina Systems, Inc., Lantiq Deutschland GmbH, Marvell Technology Group Ltd., M/A-COM Technology Solutions Holdings, Inc., PMC-Sierra, Inc., Metanoia Communication, QUALCOMM Incorporated, Realtek Semiconductor Corp., and MediaTek Inc. As of December 29, 2013, the Company had over 285 patents issued in the United States and more than 35 companion patents issued in foreign jurisdictions.

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