Health Net (Health Net) EBIT : $488 Mil (TTM As of Dec. 2015)

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What is Health Net EBIT?

Health Net's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2015 was $110 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2015 was $488 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Health Net's annualized ROC % for the quarter that ended in Dec. 2015 was 6.88%. Health Net's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2015 was 308.39%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Health Net's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2015 was 9.35%.

Health Net EBIT Historical Data

The historical data trend for Health Net'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.

Health Net EBIT Chart

Health Net Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

EBIT

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193.90

64.87

302.57

231.17

487.95

Health Net Quarterly Data
	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15
EBIT	Get a 7-Day Free Trial															24.23	75.76	140.51	161.77	109.92

Competitive Comparison of Health Net's EBIT

For the Healthcare Plans subindustry, Health Net'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.

Health Net's EV-to-EBIT Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, Health Net's EV-to-EBIT distribution charts can be found below:

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

Health Net 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. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $488 Mil.

Health Net (NYSE:HNT) EBIT Explanation

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

Health Net's annualized ROC % for the quarter that ended in Dec. 2015 is calculated as:

	ROC % (Q: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2015 )	+	Invested Capital (Q: Dec. 2015 ))	/ count )
=	546.712 * ( 1 - 63.47% )	/	( (2819.846	+	2986.227)	/ 2 )
=	199.7138936	/	2903.0365
=	6.88 %

where

	Invested Capital		(Q: Sep. 2015 )
=	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	))
=	6023.431	-	1542.55	-	( 3194.186	-	max(0, 3348.034	-	5009.069	+	3194.186	))
=	2819.846

	Invested Capital		(Q: Dec. 2015 )
=	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	))
=	6397.646	-	1959.286	-	( 3215.221	-	max(0, 3871.91	-	5324.043	+	3215.221	))
=	2986.227

Note: The Operating Income data used here is four times the quarterly (Dec. 2015) data.

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

Health Net's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2015 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2015 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2015		Q: Dec. 2015
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	439.664	/	( ( (139.083 + max(-1964.138, 0))	+	(146.053 + max(-2889.36, 0)) )	/	2 )
=	439.664	/	( ( 139.083	+	146.053 )	/	2 )
=	439.664	/	142.568
=	308.39 %

where Working Capital is:

	Working Capital		(Q: Sep. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(997.858	+	0	+	386.038)	-	(1542.55	+	121.061	+	1684.423)
=	-1964.138

	Working Capital		(Q: Dec. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(267.655	+	0	+	429.895)	-	(1959.286	+	134.232	+	1493.392)
=	-2889.36

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2015) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2015 )
	=	487.953	/	5216.210
	=	9.35 %

Health Net EBIT Related Terms

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Health Net (Health Net) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » Health Net Inc (NYSE:HNT) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.health.net

Health Net Inc was incorporated in the state of Delaware on 1990. The Company is an integrated managed care organization that delivers managed health care services. The Company's health plans and government contracts subsidiaries provide health benefits through its health maintenance organizations (HMOs), insured preferred provider organizations (PPOs) and point of service (POS). Its subsidiaries also offer managed health care products related to behavioral health and prescription drugs. The Company also owns health and life insurance companies licensed to sell exclusive provider organization (EPO), PPO, POS and indemnity products as well as auxiliary non-health products such as life and accidental death and dismemberment, dental, vision, behavioral health and disability insurance. These products are offered by its health and life insurance subsidiaries, which are licensed to sell insurance in approximately 49 states and the District of Columbia. It operates within three reportable segments: West Operations, Northeast Operations and Government Contracts. The Company's West Operations segment includes the operations of its commercial, Medicare and Medicaid health plans, the operations of its health and life insurance companies and its behavioral health and pharmaceutical services subsidiaries in Arizona, California and Oregon. The Company offers a full spectrum of managed health care products and services. It offers a range of Medicare products, including Medicare Advantage plans with and without prescription drug coverage, Medicare Part D stand-alone prescription drug plans ('PDP'), and Medicare supplement products that supplement traditional fee-for-service Medicare coverage. Its portfolio of Medicare Advantage plans focuses on simplicity so that members can sign up and use benefits with minimal paperwork and receive coverage that starts immediately upon enrollment. The Company provides ASO products to large employer groups in California. Its Government Contracts segment includes its TRICARE contract for the North Region and other health care-related government contracts that it administers for the U.S. Department of Defense (the 'Department of Defense') and the U.S. Department of Veterans Affairs. Certain components of these contracts are subcontracted to unrelated third parties. Its wholly-owned subsidiary, Health Net Federal Services, LLC ('HNFS'), administers a large managed care federal contract with the Department of Defense under the TRICARE program in the North Region. The Company maintains a network of qualified physicians, hospitals and other health care providers in each of the states in which it offers network based managed care products and services. It markets its products and services to individuals and employer groups through inside sales staff, independent brokers, agents and consultants and through the Internet. The Company operates in a highly competitive environment in an industry. Its health plans face subst

Executives

Mary Anne Citrino	director	345 PARK AVENUE, 29TH FLOOR, NEW YORK NY 10154
Craver Theodore F Jr	director	DUKE ENERGY CORPORATION, 550 SOUTH TRYON STREET - DEC45A, CHARLOTTE NC 28202
Kathleen Alyce Waters	officer: SVP, Gen. Counsel & Secretary	C/O DAVITA INC., 2000 16TH STREET, DENVER CO 80202
Jay M Gellert	director, officer: President, CEO	6520 PLATT AVENUE, #695, WEST HILL CA 91307
Gale S Fitzgerald	director	800 DELEWARE AVE, COMPUTER TASK GROUP INC, BUFFALO NY 14209
James Woys	officer: EVP, CFO and COO	21650 OXNARD STREET, 22ND FLOOR, WOODLAND HILLS CA 91367
Patrick Foley	director	C/O GLENBOROUGH REALTY TRUST, 400 SOUTH EL CAMINO REAL, SAN MATEO CA 94402
Steven H Nelson	officer: President Health Net of the NE	21650 OXNARD STREET, WOODLAND HILLS CA 91367
Anthony S Piszel	officer: EVP & Chief Financial Officer	C/O PRUDENTIAL FINANCIAL INC, 751 BROAD ST 4TH FL, NEWARK NJ 07102
Maurice Hebert	officer: Corporate Controller	C/O WELLCARE HEALTH PLANS, INC., 8735 HENDERSON ROAD, TAMPA FL 33634
Richard W Hanselman	director	21650 OXNARD STREET, 22ND FLOOR, WOODLAND HILLS CA 91367
J Thomas Bouchard	director	5301 N IRONWOOD RD, MILWAUKEE WI 53217