Graco (GGG) EBIT

: $614 Mil (TTM As of Dec. 2023)

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Graco's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $128 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $614 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Graco's annualized ROC % for the quarter that ended in Dec. 2023 was 30.63%. Graco's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 41.68%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Graco's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 4.23%.

Graco EBIT Historical Data

The historical data trend for Graco'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.

Graco Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

418.99

385.93

518.68

575.62

613.99

Graco Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
EBIT																155.32	158.70	161.42	165.67	128.21

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Graco'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.

Graco EV-to-EBIT Distribution

For the Industrial Products industry and Industrials sector, Graco's EV-to-EBIT distribution charts can be found below:

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

Graco 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 $614 Mil.

Graco (NYSE:GGG) EBIT Explanation

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

Graco'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 )
=	679.736 * ( 1 - 13.8% )	/	( (1898.473	+	1927.112)	/ 2 )
=	585.932432	/	1912.7925
=	30.63 %

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	))
=	2674.917	-	250.659	-	( 525.785	-	max(0, 395.888	-	1377.332	+	525.785	))
=	1898.473

	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	))
=	2722.007	-	256.944	-	( 537.951	-	max(0, 395.2	-	1365.809	+	537.951	))
=	1927.112

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

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

Graco'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 )
=	512.828	/	( ( (735.875 + max(493.59, 0))	+	(760.481 + max(470.936, 0)) )	/	2 )
=	512.828	/	( ( 1229.465	+	1231.417 )	/	2 )
=	512.828	/	1230.441
=	41.68 %

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)
=	(352.505	+	457.604	+	41.438)	-	(250.659	+	60.332	+	46.966)
=	493.59

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(354.439	+	438.349	+	35.07)	-	(256.944	+	51.578	+	48.4)
=	470.936

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:

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

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	613.993	/	14521.155
	=	4.23 %

Graco EBIT Related Terms

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Graco (GGG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Graco Inc (NYSE:GGG) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

GA8:Germany GA8:Germany

Address

88-11th Avenue Northeast, Minneapolis, MN, USA, 55413

Website

https://www.graco.com

Graco manufactures equipment used for managing fluids, coatings, and adhesives, specializing in difficult-to-handle materials. Graco's business is organized into three segments: industrial, process, and contractor. The Minnesota-based firm serves a wide range of end markets, including industrial, automotive, and construction, and its broad array of products include pumps, valves, meters, sprayers, and equipment used to apply coatings, sealants, and adhesives. The firm generated roughly $2.1 billion in sales and $573 million in operating income in 2022.

Executives

Mark W Sheahan	officer: VICE PRESIDENT AND TREASURER	P.O. BOX 1441, MINNEAPOLIS MN 55440-1441
Angela F Wordell	officer: Executive VP, Operations	88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Kathryn L Schoenrock	officer: Executive Vice President	88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Caroline M Chambers	officer: Vice President and Controller	PO BOX 1441, MINNEAPOLIS MN 55440-1441
Eric Etchart	director	ROOM F, 22F CROSS REGION PLAZA, 899 LINGLING ROAD, SHANGHAI F4 200030
Van Sant R William	director	PO BOX 1441, MINNEAPOLIS MN 55440-1441
Timothy R White	officer: President, EMEA	88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Ronita Banerjee	officer: EVP, Chief HR Officer	88 11TH AVENUE NE, MINNEAPOLIS MN 55105
Jeffrey P. Johnson	officer: Vice President	88 - 11TH AVENUE N.E., MINNEAPOLIS MN 55413
Heather L Anfang	director	88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Dale D Johnson	officer: VICE PRESIDENT	P.O. BOX 1441, MINNEAPOLIS MN 5440-1441
Christopher D. Knutson	officer: EVP, Corporate Controller	88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Claudio Merengo	officer: President, Worldwide Gema	88 11TH AVENUE NE, MINNEAPOLIS MN 55413
J Kevin Gilligan	director	P O BOX 1441, MINNEAPOLIS MN 55440-1441
Archie C. Black	director	333 SOUTH SEVENTH STREET, SUITE 1000, MINNEAPOLIS MN 55402