athenahealth (athenahealth) EBIT : $161 Mil (TTM As of Sep. 2018)

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What is athenahealth EBIT?

athenahealth's earnings before interest and taxes (EBIT) for the three months ended in Sep. 2018 was $38 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2018 was $161 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. athenahealth's annualized ROC % for the quarter that ended in Sep. 2018 was 8.96%. athenahealth's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2018 was 39.29%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. athenahealth's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2018 was 39.39%.

athenahealth EBIT Historical Data

The historical data trend for athenahealth's EBIT 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.

athenahealth EBIT Chart

athenahealth Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

EBIT

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6.14

0.90

24.60

26.90

69.90

athenahealth Quarterly Data
	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18
EBIT	Get a 7-Day Free Trial															18.60	38.00	42.10	43.10	38.20

Competitive Comparison of athenahealth's EBIT

For the Health Information Services subindustry, athenahealth's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.

athenahealth's EV-to-EBIT Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, athenahealth's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where athenahealth's EV-to-EBIT falls into.

athenahealth EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Sep. 2018 adds up the quarterly data reported by the company within the most recent 12 months, which was $161 Mil.

athenahealth (NAS:ATHN) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

athenahealth's annualized ROC % for the quarter that ended in Sep. 2018 is calculated as:

	ROC % (Q: Sep. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2018 )	+	Invested Capital (Q: Sep. 2018 ))	/ count )
=	152.8 * ( 1 - 27.47% )	/	( (1243.2	+	1230.7)	/ 2 )
=	110.82584	/	1236.95
=	8.96 %

where

	Invested Capital		(Q: Jun. 2018 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1526.4	-	61.1	-	( 222.1	-	max(0, 209	-	548.3	+	222.1	))
=	1243.2

	Invested Capital		(Q: Sep. 2018 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1589	-	54.9	-	( 303.4	-	max(0, 224	-	614.4	+	303.4	))
=	1230.7

Note: The Operating Income data used here is four times the quarterly (Sep. 2018) data.

2. Joel Greenblatt's definition of Return on Capital:

athenahealth's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2018 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2018 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2018		Q: Sep. 2018
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	152.8	/	( ( (346.9 + max(61, 0))	+	(337 + max(32.9, 0)) )	/	2 )
=	152.8	/	( ( 407.9	+	369.9 )	/	2 )
=	152.8	/	388.9
=	39.29 %

where Working Capital is:

	Working Capital		(Q: Jun. 2018 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(183.7	+	0	+	62.3)	-	(61.1	+	34.2	+	89.7)
=	61

	Working Capital		(Q: Sep. 2018 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(167.4	+	0	+	63.7)	-	(54.9	+	31.3	+	112)
=	32.9

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2018) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

athenahealth's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Sep. 2018 )
	=	161.4	/	409.724
	=	39.39 %

athenahealth EBIT Related Terms

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athenahealth (athenahealth) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » athenahealth Inc (NAS:ATHN) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.athenahealth.com

Athenahealth provides healthcare IT (HCIT) services through cloud-based and mobile application products largely for smaller to midsize medical groups and health systems. Their services include revenue cycle and practice management, electronic health records, patient engagement, population health management, and care coordination. The business services segment generates 96% of revenue, which provides cloud-based solutions and support to healthcare providers. Athenahealth is headquartered in Waltham, Massachusetts.

Executives

Brian P Mckeon	director	IDEXX LABORATORIES, ONE IDEXX DRIVE, WESTBROOK ME 04092
John A Kane	director	C/O MERCHANTS BANCSHARES, INC., 275 KENNEDY DRIVE, SOUTH BURLINGTON VT 05403
Dev Ittycheria	director	C/O MONGO DB, INC., 1633 BROADWAY, 38TH FLOOR, NEW YORK NY 10019
Ed Park	director	311 ARSENAL STREET WATERTOWN MA 02472
Brandon H Hull	director	221 NASSAU STREET, PRINCETON NJ 08542
Thomas J Szkutak	director	P O BOX 81226, SEATTLE WA 98108-1226
Jeffrey R Immelt	director, other: Executive Chairman	GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210
Marc A Levine	officer: Chief Financial Officer	C/O ATHENAHEALTH, INC., 311 ARSENAL STREET, WATERTOWN MA 02472
Jacqueline B Kosecoff	director	5960 HEISLEY ROAD, MENTOR OH 44060
Amy Abernethy	director	311 ARSENAL STREET, WATERTOWN MA 02472
Kristi Ann Matus	officer: EVP and CFAO	C/O EQUITABLE HOLDINGS, INC., 1290 AVENUE OF THE AMERICAS, NEW YORK NY 10104
Daniel H. Orenstein	officer: SVP, GC, and Secretary	311 ARSENAL STREET, WATERTOWN MA 02472
Jeremy Delinsky	officer: SVP, Chief Product Officer	C/O WAYFAIR INC., 4 COPLEY PLACE, 7TH FLOOR, BOSTON MA 02116
Timothy M Adams	officer: CFO & SVP	311 ARSENAL STREET, WATERTOWN MA 02472
Bryan E Roberts	director	C/O VENROCK ASSOCIATES, 2494 SAND HILL ROAD STE 200, MENLO PARK CA 94025