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NTGR (Netgear) ROC (Joel Greenblatt) % : -75.48% (As of Jun. 2024)


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What is Netgear 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. Netgear's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was -75.48%.

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

NTGR' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -23.7   Med: 20.11   Max: 42.98
Current: -23.7

During the past 13 years, Netgear's highest ROC (Joel Greenblatt) % was 42.98%. The lowest was -23.70%. And the median was 20.11%.

NTGR's ROC (Joel Greenblatt) % is ranked worse than
84.47% of 2453 companies
in the Hardware industry
Industry Median: 10.13 vs NTGR: -23.70

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


Netgear ROC (Joel Greenblatt) % Historical Data

The historical data trend for Netgear'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.

Netgear ROC (Joel Greenblatt) % Chart

Netgear Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.96 28.22 24.41 -12.06 -11.12

Netgear Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 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 -19.73 0.53 -4.04 -35.88 -75.48

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

For the Communication Equipment subindustry, Netgear'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.


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

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

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



Netgear 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. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(172.771 + 211.27 + 30.178) - (182.425 + 28.393 + 22.193)
=181.208

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(147.069 + 188.936 + 27.228) - (188.453 + 28.682 + 23.966)
=122.132

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Netgear 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: Mar. 2024  Q: Jun. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-147.884/( ( (44.066 + max(181.208, 0)) + (44.435 + max(122.132, 0)) )/ 2 )
=-147.884/( ( 225.274 + 166.567 )/ 2 )
=-147.884/195.9205
=-75.48 %

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


Netgear  (NAS:NTGR) 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.


Netgear ROC (Joel Greenblatt) % Related Terms

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


Netgear Business Description

Industry
Traded in Other Exchanges
Address
350 East Plumeria Drive, San Jose, CA, USA, 95134
Netgear Inc is a provider of networking solutions. The reportable segments of the company are connected home, and Small and Medium Businesses (SMB). The Connected Home segment focuses on consumers and consists of high-performance, dependable, and easy-to-use 4G/5G mobile, Wi-Fi internet networking solutions, and smart devices such as Orbi Voice smart speakers and Meural digital canvas; and NETGEAR specializes in providing networking solutions for businesses, including wireless LAN, Pro AV applications for audio and video over Ethernet, security, and remote management.
Executives
Thomas H Waechter director
Shravan Goli director 1040 AVENUE OF THE AMERICAS, NEW YORK NY 10016
Sarah Butterfass director 350 E. PLUMERIA DR., SAN JOSE CA 95134
Heidi Cormack officer: SVP, Marketing 350 E. PLUMERIA DR., SAN JOSE CA 95134
Martin Westhead officer: CTO 350 E. PLUMERIA DR., SAN JOSE CA 95134
Michael A Werdann officer: SVP of Worldwide Sales 4500 GREAT AMERICAN PARKWAY, C/O NETGEAR INC, SANTA CLARA CA 95054
Andrew Wonki Kim officer: SVP, Legal and Corp. Dev. 892 RUSSET DR., SUNNYVALE CA 94087
Vikram Mehta officer: SVP, CBU 350 E. PLUMERIA DR., SAN JOSE CA 95134
Laura Durr director C/O XPERI HOLDING CORPORATION, 3025 ORCHARD PARKWAY, SAN JOSE CA 95134
Mark G Merrill officer: Chief Technology Officer
Patrick Cs Lo director, officer: Chairman and CEO
David John Henry officer: SVP, Home Networking 350 E. PLUMERIA DR., SAN JOSE CA 95134
Michael F Falcon officer: SVP, Operations
Tamesa Rogers officer: SVP, Human Resources 350 EAST PLUMERIA DR, SAN JOSE CA 95134
Murray Bryan officer: CFO 350 E. PLUMERIA DR., SAN JOSE CA 95134