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Revolve Group (Revolve Group) ROC (Joel Greenblatt) % : 28.23% (As of Mar. 2024)


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What is Revolve Group 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. Revolve Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 28.23%.

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

RVLV' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 14.39   Med: 101.73   Max: 204.82
Current: 14.39

During the past 7 years, Revolve Group's highest ROC (Joel Greenblatt) % was 204.82%. The lowest was 14.39%. And the median was 101.73%.

RVLV's ROC (Joel Greenblatt) % is ranked better than
59.26% of 1107 companies
in the Retail - Cyclical industry
Industry Median: 9.87 vs RVLV: 14.39

Revolve Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -25.80% per year.


Revolve Group ROC (Joel Greenblatt) % Historical Data

The historical data trend for Revolve Group'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.

Revolve Group ROC (Joel Greenblatt) % Chart

Revolve Group Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial 105.03 172.26 204.82 68.28 15.80

Revolve Group Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 37.32 21.86 0.93 6.35 28.23

Competitive Comparison of Revolve Group's ROC (Joel Greenblatt) %

For the Internet Retail subindustry, Revolve Group'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.


Revolve Group's ROC (Joel Greenblatt) % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Revolve Group's ROC (Joel Greenblatt) % distribution charts can be found below:

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



Revolve Group 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: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(12.405 + 203.587 + 65.523) - (88.535 + 0 + 94.222)
=98.758

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(14.929 + 201.839 + 78.555) - (105.727 + 0 + 113.183)
=76.413

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Revolve Group for the quarter that ended in Mar. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=37.312/( ( (44.203 + max(98.758, 0)) + (44.97 + max(76.413, 0)) )/ 2 )
=37.312/( ( 142.961 + 121.383 )/ 2 )
=37.312/132.172
=28.23 %

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


Revolve Group  (NYSE:RVLV) 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.


Revolve Group ROC (Joel Greenblatt) % Related Terms

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


Revolve Group (Revolve Group) Business Description

Traded in Other Exchanges
Address
12889 Moore Street, Cerritos, CA, USA, 90703
The Revolve Group is an emerging e-commerce retailer, selling women's dresses, handbags, shoes, beauty products, and incidentals across its marketplace properties, Revolve and FWRD. The platform is built to suit the "next-generation customer," emphasizing mobile commerce, influencer marketing, and occupying an aspirational but attainable luxury niche. With $1.1 billion in 2022 net sales, the firm sits just outside the top 30 apparel retailers (by sales) in the U.S., but has consistently generated top-line growth north of 20%-25% as the industry continues to favor digital channels. Revolve generates approximately 20% of sales from private-label offerings, while focusing on building an inventory of unique products from emerging fashion brands with less than $10 million in annual sales.
Executives
Michael Mente director, 10 percent owner, officer: See Remarks C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Michael Karanikolas director, 10 percent owner, officer: See Remarks C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Mmmk Development, Inc. 10 percent owner C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Oana Ruxandra director C/O WARNER MUSIC GROUP CORP., 1633 BROADWAY, NEW YORK NY 10019
Marc D Stolzman director C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Jesse Timmermans officer: CHIEF FINANCIAL OFFICER C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
David Pujades officer: CHIEF OPERATING OFFICER 16800 EDWARDS ROAD, CERRITOS CA 90703
L.p. Tsg6 10 percent owner TSG CONSUMER PARTNERS, 600 MONTGOMERY STREET, SUITE 2900, SAN FRANCISCO CA 94111
Hadley Mullin director C/O TSG CONSUMER PARTNERS, 600 MONTGOMERY STREET, SUITE 2900, SAN FRANCISCO CA 94111
Melanie Cox director C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Jennifer Baxter Moser director C/O TSG CONSUMER PARTNERS, 600 MONTGOMERY STREET, SUITE 2900, SAN FRANCISCO CA 94111
Tsg6 Management L.l.c. 10 percent owner C/O TSG CONSUMER PARTNERS, LLC, 600 MONTGOMERY STREET, SUITE 2900, SAN FRANCISCO CA 94111