I tried some today to replicate the formula. Fidelity has some great financial statements with terrific detail in their reserach section. Of the 7 stocks I looked at, I was pretty much able to match JG's numbers exactly on 4. The others were off considerably in ROIC (I was generally close on EY). I am missing some adjustment to invested capital. I did some reading on calculation of invested capital, but there seem to be multiple definitions. Any insight on how one would calculate IC is welcomed. Try IPSU as an illustration.
Tony B mentioned on his website that a book favors slow moving industries. He said he had lost more on high tech firms. I can't say the same for me, though I have lost mucho $ on OVTI. Speaking of slow movers, I saw where recently sold DLX had a great quarter.
Looks like FDG had decent earnings (though I could not tell by reading their release) as they went up 1% today. Not a great day, I am now just a whisker ahead of the benchmark. BBSI was my best stock while PDS and TGB were down. Finally I did add TGIS at $11.88 to my sidecar. I saw where their internal review of stock options was released with little fanfare (Thomas Group Announces Conclusion and Reports Results of Voluntary Investigation of Stock Option Granting Practices).
Can't believe my Mavericks lost to the Warriors. I am not sure we can win.
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MG, for IPSU, here's what I came up with, which agrees with what is being reported on the MFI site as of this writing: (Sorry; I know this won't look pretty.)
NWC = accts receivable + inventory + other current assets - accts payable - other current liabilities
= 42.082 + 110.771 + 11.650 - 28.705 - 62.851
= 72.947
TTM Op. Income = 23.452 + 22.631 + 20.780 + 11.261
= 78.124
Net Fixed Assets = 88.651
ROC = TTM Op.Income / (NWC + Net Fixed Assets)
= 78.124 / (72.947 + 88.651)
= 78.124 / 161.598
= 48%
For which stocks were you unable to replicate ROIC? I'll take a look.
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