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Willis Towers Watson's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $802 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $1,514 Mil.
EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Willis Towers Watson's annualized ROC % for the quarter that ended in Dec. 2023 was 11.20%. Willis Towers Watson's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 253.80%.
EBIT is also linked to Joel Greenblatt's definition of earnings yield. Willis Towers Watson's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 4.82%.
The historical data trend for Willis Towers Watson'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.
For the Insurance Brokers subindustry, Willis Towers Watson'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.
For the Insurance industry and Financial Services sector, Willis Towers Watson's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Willis Towers Watson's EV-to-EBIT falls into.
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 $1,514 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.
Willis Towers Watson (NAS:WTW) EBIT Explanation
1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Willis Towers Watson'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 ) |
= | 3424 * ( 1 - 15.7% ) | / | ( (24795 | + | 26767) | / 2 ) |
= | 2886.432 | / | 25781 | |||
= | 11.20 % |
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 | )) |
= | 27623 | - | 2299 | - | ( 1247 | - | max(0, 11305 | - | 11834 | + | 1247 | )) |
= | 24795 |
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 | )) |
= | 29090 | - | 1520 | - | ( 1424 | - | max(0, 12630 | - | 13433 | + | 1424 | )) |
= | 26767 |
Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.
2. Joel Greenblatt's definition of Return on Capital:
Willis Towers Watson'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 ) |
= | 3208 | / | ( ( (1243 + max(-1078, 0)) | + | (1285 + max(-1052, 0)) ) | / | 2 ) |
= | 3208 | / | ( ( 1243 | + | 1285 ) | / | 2 ) |
= | 3208 | / | 1264 | ||||
= | 253.80 % |
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) |
= | (1296 | + | 0 | + | 8163) | - | (2299 | + | 30 | + | 8208) |
= | -1078 |
Working Capital | (Q: Dec. 2023 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (1581 | + | 0 | + | 9222) | - | (1520 | + | 23 | + | 10312) |
= | -1052 |
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:
Willis Towers Watson's Earnings Yield (Joel Greenblatt) % for today is calculated as:
Earnings Yield (Joel Greenblatt) % | = | EBIT (TTM) | / | Enterprise Value (Q: Dec. 2023 ) |
= | 1514 | / | 31412.840 | |
= | 4.82 % |
* 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.
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Pamela Thomson-hall | officer: Head of International | 51 LIME STREET, LONDON X0 EC3M 7DQ |
Anne Pullum | officer: Head of Strategy and CAO | C/O WILLIS TOWERS WATSON, 200 LIBERTY ST, 7TH FLOOR, NEW YORK NY 10281 |
Julie Jarecke Gebauer | officer: Head of Human Capital&Benefits | JUPITER SATURN HOLDING CO, 875 THIRD AVENUE, NEW YORK NY 10022 |
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