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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. Reata Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 was 785.17%.
The historical rank and industry rank for Reata Pharmaceuticals's ROC (Joel Greenblatt) % or its related term are showing as below:
During the past 10 years, Reata Pharmaceuticals's highest ROC (Joel Greenblatt) % was 97.03%. The lowest was -12563.16%. And the median was -504.74%.
Reata Pharmaceuticals's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 53.90% per year.
The historical data trend for Reata Pharmaceuticals'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.
Reata Pharmaceuticals Annual Data | |||||||||||||||||||||
Trend | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | |||||||||||
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial | -6,874.16 | -12,563.16 | -3,559.93 | -329.41 | -212.04 |
Reata Pharmaceuticals Quarterly Data | ||||||||||||||||||||
Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | |
ROC (Joel Greenblatt) % | Get a 7-Day Free Trial | -179.15 | -196.24 | -234.18 | -363.50 | 785.17 |
For the Biotechnology subindustry, Reata Pharmaceuticals'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.
For the Biotechnology industry and Healthcare sector, Reata Pharmaceuticals's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Reata Pharmaceuticals's ROC (Joel Greenblatt) % falls into.
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) |
= | (0 | + | 0 | + | 11.583) | - | (33.893 | + | 0 | + | 17.499) |
= | -39.809 |
Working Capital | (Q: Jun. 2023 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (22.662 | + | 2.942 | + | 46.031) | - | (92.629 | + | 0 | + | 30.008) |
= | -51.002 |
When net working capital is negative, 0 is used.
So ROC (Joel Greenblatt) % of Reata Pharmaceuticals for the quarter that ended in Jun. 2023 can be restated as:
ROC (Joel Greenblatt) % | (Q: Jun. 2023 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Mar. 2023 | Q: Jun. 2023 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | 803.884 | / | ( ( (114.867 + max(-39.809, 0)) | + | (89.901 + max(-51.002, 0)) ) | / | 2 ) |
= | 803.884 | / | ( ( 114.867 | + | 89.901 ) | / | 2 ) |
= | 803.884 | / | 102.384 | ||||
= | 785.17 % |
Note: The EBIT data used here is four times the quarterly (Jun. 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.
Reata Pharmaceuticals (NAS:RETA) 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.
Thank you for viewing the detailed overview of Reata Pharmaceuticals's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Steven Ryder | director | 234 CHURCH STREET, SUITE 1020, NEW HAVEN CT 06510 |
Antal Rohit Desai | director, 10 percent owner | C/O PROCEPT BIOROBOTICS CORPORATION, 900 ISLAND DRIVE, REDWOOD CITY CA 94065 |
Rajiv Patni | officer: EVP, Chief R&D Officer | C/O OCERA THERAPEUTICS, INC., 525 UNIVERSITY AVENUE, SUITE 610, PALO ALTO CA 94301 |
Bhaskar Anand | officer: SVP, Chief Accounting Officer | 5320 LEGACY DRIVE, PLANO TX 75024 |
Manmeet Singh Soni | officer: COO, CFO and President | C/O PHARMACYCLICS, INC., 995 EAST ARQUES AVE, SUNNYVALE CA 94085 |
Martin Edwards | director | 15 NEW ENGLAND EXECUTIVE PARK, BURLINGTON MA 01803 |
Dawn Carter Bir | officer: Chief Commercial Officer | C/O REATA PHARMACEUTICALS, INC., 2801 GATEWAY DRIVE, SUITE 150, IRVING TX 75063 |
Christy J. Oliger | director | 85 WELLS AVENUE, SUITE 210, NEWTON MA 02459 |
Andrea Loewen | officer: SVP, Global Regulatory Affairs | C/O VITAL THERAPIES, INC., 15010 AVENUE OF SCIENCE, SUITE 200, SAN DIEGO CA 92128 |
Shamim Ruff | director | 215 FIRST STREET, SUITE 415, CAMBRIDGE MA 02142 |
Mcclellan William D. Jr. | director | C/O APOLLO ENDOSURGERY, INC., 1120 S., CAPITAL OF TEXAS HWY, BLDG. 1, SUITE 300, AUSTIN TX 78746 |
Michael D Wortley | officer: See Remarks | 5320 LEGACY DRIVE, PLANO TX 75024 |
Meyer Colin John | officer: See Remarks | C/O REATA PHARMACEUTICALS, INC., 2801 GATEWAY DR. SUITE 150, IRVING TX 75063 |
Biogen Inc. | other: See footnotes | 225 BINNEY STREET, CAMBRIDGE MA 02142 |
Samina Khan | officer: SVP, Chief Medical Officer | 5320 LEGACY DRIVE, PLANO TX 75024 |
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