NetSuite (NetSuite) EBIT : $-113.9 Mil (TTM As of Sep. 2016)

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What is NetSuite EBIT?

NetSuite's earnings before interest and taxes (EBIT) for the three months ended in Sep. 2016 was $-28.7 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $-113.9 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. NetSuite's annualized ROC % for the quarter that ended in Sep. 2016 was -12.63%. NetSuite's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 was -117.72%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. NetSuite's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2016 was -1.55%.

NetSuite EBIT Historical Data

The historical data trend for NetSuite'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.

NetSuite EBIT Chart

NetSuite Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

EBIT

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-30.06

-32.49

-61.09

-83.56

-115.69

NetSuite Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
EBIT	Get a 7-Day Free Trial															-33.47	-27.38	-24.80	-32.95	-28.75

Competitive Comparison of NetSuite's EBIT

For the Software - Application subindustry, NetSuite'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.

NetSuite's EV-to-EBIT Distribution in the Software Industry

For the Software industry and Technology sector, NetSuite's EV-to-EBIT distribution charts can be found below:

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

NetSuite 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. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $-113.9 Mil.

NetSuite (NYSE:N) EBIT Explanation

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

NetSuite's annualized ROC % for the quarter that ended in Sep. 2016 is calculated as:

	ROC % (Q: Sep. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2016 )	+	Invested Capital (Q: Sep. 2016 ))	/ count )
=	-115.38 * ( 1 - -4.6% )	/	( (940.933	+	970.097)	/ 2 )
=	-120.68748	/	955.515
=	-12.63 %

where

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	1189.043	-	98.95	-	( 407.695	-	max(0, 551.922	-	701.082	+	407.695	))
=	940.933

	Invested Capital		(Q: Sep. 2016 )
=	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	))
=	1232.476	-	107.815	-	( 461.082	-	max(0, 581.785	-	736.349	+	461.082	))
=	970.097

Note: The Operating Income data used here is four times the quarterly (Sep. 2016) data.

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

NetSuite's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2016 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2016		Q: Sep. 2016
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-114.996	/	( ( (95.563 + max(-255.568, 0))	+	(99.801 + max(-303.518, 0)) )	/	2 )
=	-114.996	/	( ( 95.563	+	99.801 )	/	2 )
=	-114.996	/	97.682
=	-117.72 %

where Working Capital is:

	Working Capital		(Q: Jun. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(177.088	+	0	+	116.299)	-	(98.95	+	436.677	+	13.328)
=	-255.568

	Working Capital		(Q: Sep. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(168.309	+	0	+	106.958)	-	(107.815	+	455.667	+	15.303)
=	-303.518

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2016) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Sep. 2016 )
	=	-113.884	/	7360.420
	=	-1.55 %

NetSuite EBIT Related Terms

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NetSuite (NetSuite) Business Description

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Address

Website

http://www.netsuite.com

NetSuite Inc was incorporated in California in September 1998 and reincorporated in Delaware in November 2007. The Company is engaged in providing cloud-based financials / Enterprise Resource Planning and omnichannel commerce software suites. It also offers suite of applications, including financial management, Customer Relationship Management, Ecommerce and retail management, Professional Services Automation and Human Capital Management that enable companies to manage its business operations. The Company's offerings include NetSuite, designed to provide business management capabilities; NetSuite, OneWorld and NetSuite CRM+ are designed for use by types of businesses; and NetSuite OpenAir is designed for use by professional services businesses. The Company's NetSuite applications are served to medium-sized businesses and divisions of companies provides a single platform for financials/ERP, CRM, PSA and Ecommerce capabilities. Its NetSuite OneWorld software is offered to companies operating in multinational and multi-subsidiary environment. NetSuite OneWorld allows users to utilize its single platform for financials/ERP, CRM, PSA and Ecommerce capabilities in multi-currency environments across multiple subsidiaries and legal entities. Its NetSuite CRM+ is offered to medium-sized business customers. This application provides traditional sales force automation, marketing automation, and customer support and service management functionality. NetSuite OpenAir PSA solution is used by professional services organizations. SuiteCommerce solution is built for retail and B2B businesses. SuiteCommerce enables businesses to move from standalone transactional channels such as online, in-store or telephone to an integrated commerce solution that puts the customer at the center of every experience. NetSuite POS is a point-of-sale solution that is used by retail businesses to deliver customer experience at the point of sale and turn today's shopper into tomorrow's loyal customer. TribeHR is a full suite of HCM functionality necessary to recruit, manage and reward employees. Add-On Modules offers integrated suite. SuiteCloud is a technology platform that allows customers, partners and developers to tailor and extend suite to meet specific company, vertical and industry requirements for personalization, business processes and practices. The Company's software allows businesses to automate operations, streamline processes and access real-time business information. It also offer customer support and professional services related to implementing and supporting its applications. It delivers its suite over the Internet as a subscription service using the software-as-a-service model. It also offers industry-specific configurations for use by wholesale/distribution, manufacturing, retail, nonprofit, services and software companies. The Company conducts its business in Canada, Europe, Asia, Australia and Uruguay. The Company competes with financials/ERP, C

Executives

Steven J Gomo	director	495 E. JAVA DRIVE, SUNNYVALE CA 94089
Edward J Zander	director	MOTOROLA, INC., 1303 E. ALGONQUIN ROAD, SCHAUMBURG IL 60196
Catherine R Kinney	director	C/O QTS REALTY TRUST INC., 12851 FOSTER STREET, OVERLAND PARK KS 66213
Marc Huffman	officer: President WW Sales & Distrib	C/O NETSUITE INC., 2955 CAMPUS DRIVE, SUITE 100, SAN MATEO CA 94403
Kevin B Thompson	director	C/O RED HAT, INC, 1801 VARSITY DRIVE, RALEIGH NC 27606
Deborah A Farrington	director	STARVEST PARTNERS, L.P., 750 LEXINGTON AVENUE, 15TH FLOOR, NEW YORK NY 10022
James Mcgeever	officer: President and COO	C/O NETSUITE INC., 2955 CAMPUS DRIVE, SUITE 100, SAN MATEO CA 94403-2511
Ronald S Gill	officer: Chief Financial Officer	C/O NETSUITE INC, 2955 CAMPUS DRIVE SUITE 100, SAN MATEO CA 94403
Zachary Nelson	director, officer: President & CEO	C/O NETWORK ASSOCIATES, INC, 3965 FREEDOM CIRCLE, SANTA CLARA CA 95054
Beane William L. Iii	director	C/O NETSUITE INC., 2955 CAMPUS DRIVE, SUITE 100, SAN MATEO CA 94403-2511
Lawrence Joseph Ellison	10 percent owner	C/O DELPHI ASSET MGMT CORPORATION, 5525 KIETZKE LANE, SUITE 200, RENO NV 89511
James Burr Ramsey	officer: SVP Worldwide Sales & Distrib.	C/O NETSUITE INC, 2955 CAMPUS DRIVE SUITE 100, SAN MATEO CA 94403
Donald L Lucas	10 percent owner	C/O DELPHI ASSET MANAGEMENT CORPORATION, 6005 PLUMAS STREET, #202, RENO NV 89509