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Sprout Social (Sprout Social) ROC (Joel Greenblatt) % : -341.54% (As of Dec. 2023)


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What is Sprout Social 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. Sprout Social's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -341.54%.

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

SPT' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -308.18   Med: -146.38   Max: -119.02
Current: -308.18

During the past 7 years, Sprout Social's highest ROC (Joel Greenblatt) % was -119.02%. The lowest was -308.18%. And the median was -146.38%.

SPT's ROC (Joel Greenblatt) % is ranked worse than
81.85% of 2761 companies
in the Software industry
Industry Median: 12.96 vs SPT: -308.18

Sprout Social's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -10.40% per year.


Sprout Social ROC (Joel Greenblatt) % Historical Data

The historical data trend for Sprout Social'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.

Sprout Social ROC (Joel Greenblatt) % Chart

Sprout Social Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial -268.07 -140.99 -119.02 -227.22 -303.09

Sprout Social Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 Premium Member Only Premium Member Only Premium Member Only -216.93 -191.80 -254.22 -458.11 -341.54

Competitive Comparison of Sprout Social's ROC (Joel Greenblatt) %

For the Software - Application subindustry, Sprout Social'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.


Sprout Social's ROC (Joel Greenblatt) % Distribution in the Software Industry

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

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



Sprout Social 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: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(45.09 + 0 + 38.114) - (37.1 + 122.489 + 0)
=-76.385

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(63.489 + 0 + 38.049) - (36.555 + 140.536 + 0)
=-75.553

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Sprout Social 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: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-68.524/( ( (19.991 + max(-76.385, 0)) + (20.136 + max(-75.553, 0)) )/ 2 )
=-68.524/( ( 19.991 + 20.136 )/ 2 )
=-68.524/20.0635
=-341.54 %

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


Sprout Social  (NAS:SPT) 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.


Sprout Social ROC (Joel Greenblatt) % Related Terms

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


Sprout Social (Sprout Social) Business Description

Traded in Other Exchanges
Address
131 South Dearborn Street, Suite 700, Chicago, IL, USA, 60603
Sprout Social Inc develops a cloud software that brings together social messaging, data and workflows in a unified system of record, intelligence, and action. The firm generates majority revenue from software subscriptions.
Executives
Justyn Russell Howard director, 10 percent owner, officer: Chairman and CEO C/O SPROUT SOCIAL, INC., 131 SOUTH DEARBORN STREET, SUITE 700, CHICAGO IL 60603
Ryan Paul Barretto officer: President C/O SPROUT SOCIAL, INC., 131 SOUTH DEARBORN AVENUE, SUITE 700, CHICAGO IL 60603
Rankin Aaron Edward Frederick director, 10 percent owner, officer: Chief Technology Officer C/O SPROUT SOCIAL, INC., 131 SOUTH DEARBORN STREET, SUITE 700, CHICAGO IL 60603
Preto Joseph Del officer: CFO and Treasurer 600 WEST CHICAGO AVENUE, SUITE 850, CHICAGO IL 60610
Karen Walker director 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Raina Moskowitz director 117 ADAMS STREET, C/O ETSY,INC., BROOKLYN NY 11201
William Thomas Stanley director 131 S DEARBORN ST, STE 700, CHICAGO IL 60603
Steven A Collins director 20 N. MERIDIAN STREET, SUITE 200, INDIANAPOLIS IN 46204
Jamie Cannon Gilpin officer: Chief Marketing Officer C/O SPROUT SOCIAL, INC., 131 SOUTH DEARBORN STREET, SUITE 700, CHICAGO IL 60603
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Jason Kreuziger director C/O SPROUT SOCIAL, INC., 131 SOUTH DEARBORN STREET, SUITE 700, CHICAGO IL 60603
Gs Fund Holdings, L.l.c. 10 percent owner 200 WEST STREET, NEW YORK NY 10282
New Enterprise Associates 13 Lp 10 percent owner 1119 ST PAUL STREET, BALTIMORE MD 21202
Mbd Advisors, L.l.c. 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Bridge Street Opportunity Advisors, L.l.c. 10 percent owner 200 WEST STREET, NEW YORK NY 10282