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CMC Markets (LSE:CMCX) ROC (Joel Greenblatt) % : -8.93% (As of Sep. 2023)


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What is CMC Markets 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. CMC Markets's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was -8.93%.

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

LSE:CMCX' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 39.92   Med: 299.19   Max: 832.38
Current: 61.7

During the past 11 years, CMC Markets's highest ROC (Joel Greenblatt) % was 832.38%. The lowest was 39.92%. And the median was 299.19%.

LSE:CMCX's ROC (Joel Greenblatt) % is ranked better than
56.84% of 658 companies
in the Capital Markets industry
Industry Median: 37.675 vs LSE:CMCX: 61.70

CMC Markets's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 18.70% per year.


CMC Markets ROC (Joel Greenblatt) % Historical Data

The historical data trend for CMC Markets'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.

CMC Markets ROC (Joel Greenblatt) % Chart

CMC Markets Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.92 435.62 832.38 380.04 237.17

CMC Markets Semi-Annual Data
Mar13 Mar14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 281.40 455.12 314.12 138.70 -8.93

Competitive Comparison of CMC Markets's ROC (Joel Greenblatt) %

For the Capital Markets subindustry, CMC Markets'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.


CMC Markets's ROC (Joel Greenblatt) % Distribution in the Capital Markets Industry

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

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



CMC Markets 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. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(109.577 + 0 + 40.266) - (158.467 + 0 + 36.023)
=-44.647

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(66.891 + 0 + 45.171) - (175.076 + 0 + 25.386)
=-88.4

When net working capital is negative, 0 is used.

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

ROC (Joel Greenblatt) %(Q: Sep. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2023  Q: Sep. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-2.238/( ( (22.771 + max(-44.647, 0)) + (27.38 + max(-88.4, 0)) )/ 2 )
=-2.238/( ( 22.771 + 27.38 )/ 2 )
=-2.238/25.0755
=-8.93 %

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


CMC Markets  (LSE:CMCX) 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.


CMC Markets ROC (Joel Greenblatt) % Related Terms

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CMC Markets (LSE:CMCX) Business Description

Traded in Other Exchanges
Address
133 Houndsditch, London, GBR, EC3A 7BX
CMC Markets PLC is a United Kingdom-based company that provides online and mobile trading services. The company's core business is to provide online retail financial services and allows people to trade in various financial products of underlying assets such as forex markets, indices, shares, commodities, and treasuries. Its operating segments include Trading - CFD and spread bet - UK and Ireland; Trading - CFD - Europe; Trading - CFD - Australia, New Zealand and Singapore (APAC) and Canada and Investing - Stockbroking - Australia.

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