GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Equinix Inc (NAS:EQIX) » Definitions » EBIT

Equinix (Equinix) EBIT

: $1,526 Mil (TTM As of Dec. 2023)
View and export this data going back to 2000. Start your Free Trial

Equinix's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $373 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $1,526 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Equinix's annualized ROC % for the quarter that ended in Dec. 2023 was 4.00%. Equinix's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 7.67%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Equinix's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 1.79%.


Equinix EBIT Historical Data

The historical data trend for Equinix'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.

Equinix Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EBIT
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,172.28 922.69 945.03 1,185.71 1,526.25

Equinix Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
EBIT 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 Premium Member Only Premium Member Only Premium Member Only 271.91 411.27 344.37 397.13 373.49

Competitive Comparison

For the REIT - Specialty subindustry, Equinix'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.


Equinix EV-to-EBIT Distribution

For the REITs industry and Real Estate sector, Equinix's EV-to-EBIT distribution charts can be found below:

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



Equinix 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 Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,526 Mil.

* 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.


Equinix  (NAS:EQIX) EBIT Explanation

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

Equinix's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=1409.044 * ( 1 - 15.84% )/( (28271.129 + 31084.27)/ 2 )
=1185.8514304/29677.6995
=4.00 %

where

Invested Capital(Q: Sep. 2023 )
=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))
=31684.602 - 1421.784 - ( 2357.497 - max(0, 1893.691 - 3885.38+2357.497))
=28271.129

Invested Capital(Q: Dec. 2023 )
=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))
=32650.724 - 1161.007 - ( 2095.712 - max(0, 3162.25 - 3567.697+2095.712))
=31084.27

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

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

Equinix's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated 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 )
=1493.94/( ( (18886.588 + max(-88.601, 0)) + (20049.723 + max(-714.058, 0)) )/ 2 )
=1493.94/( ( 18886.588 + 20049.723 )/ 2 )
=1493.94/19468.1555
=7.67 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1030.694 + 0 + 497.189) - (1421.784 + 0 + 194.7)
=-88.601

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1003.792 + 0 + 168.713) - (1161.007 + 141.068 + 584.488)
=-714.058

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2023 )
=1526.252/85072.234
=1.79 %

* 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.


Equinix EBIT Related Terms

Thank you for viewing the detailed overview of Equinix's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.


Equinix (Equinix) Business Description

Traded in Other Exchanges
Address
One Lagoon Drive, Redwood City, CA, USA, 94065
Equinix operates 248 data centers in 71 markets worldwide. It generates 46% of total revenue in the Americas, 32% in Europe, the Middle East, and Africa, and 22% in Asia-Pacific. The firm has more than 10,000 customers, including 2,100 network providers, that are dispersed over five verticals: cloud and IT services, content providers, network and mobile services, financial services, and enterprise. About 70% of Equinix's revenue comes from renting space to tenants and related services, and more than 15% comes from interconnection. Equinix operates as a real estate investment trust.
Executives
Charles J Meyers officer: CEO and President 301 VELOCITY WAY, 5TH FLOOR, FOSTER CITY CA 94404
Scott Crenshaw officer: EVP, GM Digital Services ONE FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78133
Keith D Taylor officer: VP Finance, CAO 301 VELOCITY WAY, 5TH FLOOR, FOSTER CITY CA 94404
Brandi Galvin officer: General Counsel 301 VELOCITY WAY, 5TH FLOOR, FOSTER CITY CA 94404
Michael Earl Campbell officer: Chief Sales Officer 1 LAGOON DRIVE, REDWOOD CITY CA 94065
Jonathan Lin officer: EVP, GM, Data Center Services C/O EQUINIX, INC., ONE LAGOON DRIVE, REDWOOD CITY CA 94065
Camp Peter Van director, officer: Chief Executive Officer C/O PACKETEER INC, 10201 N DEANZA BLVD, CUPERTINO CA 95014
Gary Hromadko director, 10 percent owner, other: Affiliate of Director 301 VELOCITY WAY 5TH FLOOR, FOSTER CITY CA 94404
Christopher B Paisley director 14870 THREE OAKS COURT, SARATOGA CA 95070
Simon Miller officer: Chief Accounting Officer 1 LAGOON DR, REDWOOD CITY CA 94065
Fidelma Russo director C/O IRON MOUNTAIN INCORPORATED, ONE FEDERAL STREET, BOSTON MA 02110
Karl Strohmeyer officer: Chief Customer & Rev Officer ONE LAGOON DRIVE, 4TH FLOOR, REDWOOD CITY CA 94065
Thomas S Olinger director C/O AMB PROPERTY CORPORATION, PIER 1, BAY 1, SAN FRANCISCO CA 94111
Jeetendra I Patel director 200 E. RANDOLPH DRIVE, CHICAGO IL 60601
Ron Guerrier director C/O EXPRESS SCRIPTS HOLDING COMPANY, ONE EXPRESS WAY, ST. LOUIS MO 63121