GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Link Administration Holdings Ltd (OTCPK:LKADF) » Definitions » ROC (Joel Greenblatt) %

Link Administration Holdings (Link Administration Holdings) ROC (Joel Greenblatt) % : 82.54% (As of Dec. 2023)


View and export this data going back to 2019. Start your Free Trial

What is Link Administration Holdings 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. Link Administration Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 82.54%.

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

LKADF' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -50.65   Med: 99.79   Max: 533.79
Current: 209.51

During the past 8 years, Link Administration Holdings's highest ROC (Joel Greenblatt) % was 533.79%. The lowest was -50.65%. And the median was 99.79%.

LKADF's ROC (Joel Greenblatt) % is ranked better than
76.75% of 658 companies
in the Capital Markets industry
Industry Median: 37.675 vs LKADF: 209.51

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


Link Administration Holdings ROC (Joel Greenblatt) % Historical Data

The historical data trend for Link Administration Holdings'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.

Link Administration Holdings ROC (Joel Greenblatt) % Chart

Link Administration Holdings Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial 511.41 -47.08 -53.44 -17.19 -8.94

Link Administration Holdings Semi-Annual Data
Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 -47.28 14.62 -278.07 315.04 82.54

Competitive Comparison of Link Administration Holdings's ROC (Joel Greenblatt) %

For the Capital Markets subindustry, Link Administration Holdings'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.


Link Administration Holdings's ROC (Joel Greenblatt) % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Link Administration Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Link Administration Holdings 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: Jun. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(93.11 + 0 + 720.242) - (100.958 + 1.022 + 928.809)
=-217.437

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(117.952 + 0 + 38.639) - (110.479 + 14.546 + 331.588)
=-300.022

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Link Administration Holdings 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: Jun. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=99.112/( ( (130.691 + max(-217.437, 0)) + (109.474 + max(-300.022, 0)) )/ 2 )
=99.112/( ( 130.691 + 109.474 )/ 2 )
=99.112/120.0825
=82.54 %

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


Link Administration Holdings  (OTCPK:LKADF) 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.


Link Administration Holdings ROC (Joel Greenblatt) % Related Terms

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


Link Administration Holdings (Link Administration Holdings) Business Description

Traded in Other Exchanges
Address
680 George Street, Level 12, Sydney, NSW, AUS, 2000
Link derives its revenue primarily from providing administration services to the financial services sector in Australia, and the share registry and investment fund sectors in the U.K. The company is the largest provider of superannuation administration services and the second-largest provider of share registry services in Australia. Link's clients are usually contracted for between two and five years. The customers are relatively sticky, resulting in a high recurring revenue. The capital-light business model means cash flow is relatively strong.

Link Administration Holdings (Link Administration Holdings) Headlines

From GuruFocus

David Herro Comments on Link Group

By Sydnee Gatewood Sydnee Gatewood 10-13-2020