GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Wesfarmers Ltd (OTCPK:WFAFF) » Definitions » EBIT

Wesfarmers (Wesfarmers) EBIT : $2,461 Mil (TTM As of Dec. 2023)


View and export this data going back to 2009. Start your Free Trial

What is Wesfarmers EBIT?

Wesfarmers's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2023 was $1,393 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $2,461 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Wesfarmers's annualized ROC % for the quarter that ended in Dec. 2023 was 14.22%. Wesfarmers's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 33.23%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Wesfarmers's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 4.44%.


Wesfarmers EBIT Historical Data

The historical data trend for Wesfarmers'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.

Wesfarmers EBIT Chart

Wesfarmers Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2,065.28 1,730.16 2,668.96 2,400.56 2,445.64

Wesfarmers Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
EBIT Get a 7-Day Free Trial 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 1,284.69 1,138.44 1,385.29 1,067.79 1,392.91

Competitive Comparison of Wesfarmers's EBIT

For the Home Improvement Retail subindustry, Wesfarmers'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.


Wesfarmers's EV-to-EBIT Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Wesfarmers's EV-to-EBIT distribution charts can be found below:

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



Wesfarmers 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 semi-annually data reported by the company within the most recent 12 months, which was $2,461 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.


Wesfarmers  (OTCPK:WFAFF) EBIT Explanation

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

Wesfarmers'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: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=2769.746 * ( 1 - 28.75% )/( (13828.859 + 13921.017)/ 2 )
=1973.444025/13874.938
=14.22 %

where

Invested Capital(Q: Jun. 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))
=17816.107 - 3535.57 - ( 451.678 - max(0, 5273.154 - 6143.624+451.678))
=13828.859

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))
=18267.068 - 3885.542 - ( 538.153 - max(0, 5714.859 - 6175.368+538.153))
=13921.017

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

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

Wesfarmers'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: Jun. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2785.81/( ( (7410.067 + max(1077.182, 0)) + (7579.652 + max(698.795, 0)) )/ 2 )
=2785.81/( ( 8487.249 + 8278.447 )/ 2 )
=2785.81/8382.848
=33.23 %

where Working Capital is:

Working Capital(Q: Jun. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1269.799 + 4053.02 + 265.772) - (3535.57 + 0 + 975.839)
=1077.182

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1308.568 + 4133.869 + 194.778) - (3885.542 + 0 + 1052.878)
=698.795

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2023 )
=2460.69/55443.098
=4.44 %

* 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.


Wesfarmers EBIT Related Terms

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


Wesfarmers (Wesfarmers) Business Description

Traded in Other Exchanges
Address
123 St Georges Terrace, Level 14, Brookfield Place Tower 2, Perth, WA, AUS, 6000
Wesfarmers is Australia's largest conglomerate. Its retail operations include the Bunnings hardware chain (number one in market share), discount department stores Kmart and Target (number one and three) and Officeworks in office supplies (number one). These activities account for the vast majority of group earnings before taxes. Other operations include chemicals, fertilisers, industrial and medical gases, LPG production and distribution, and industrial and safety supplies. Management is focused on generating cash and creating shareholder wealth in the long term.

Wesfarmers (Wesfarmers) Headlines