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Strategies & Market Trends : Greenblatt's Little Book That Beats The Market

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To: bruwin who wrote (55)2/1/2006 2:49:04 PM
From: Stewart Whitman  Read Replies (1) of 218
 
I wonder why Capital Employed would be regarded as "Zero" just because Current Assets - Current Liabilities was negative

It was 'net working capital' that is set to zero if negative.

For the Return on Capital ranking, Greenblatt uses 'net working capital' + 'net fixed assets' as the denominator. He does not use most of the fields you mention.
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