VMware (VMware) EBIT : $2,163 Mil (TTM As of Jul. 2023)

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What is VMware EBIT?

VMware's earnings before interest and taxes (EBIT) for the three months ended in Jul. 2023 was $640 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2023 was $2,163 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. VMware's annualized ROC % for the quarter that ended in Jul. 2023 was 6.11%. VMware's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2023 was 156.10%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. VMware's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jul. 2023 was 3.28%.

VMware EBIT Historical Data

The historical data trend for VMware'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.

VMware EBIT Chart

VMware Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

EBIT

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1,963.00

1,587.00

2,586.00

2,337.00

2,096.00

VMware Quarterly Data
	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23
EBIT	Get a 7-Day Free Trial															553.00	396.00	748.00	379.00	640.00

Competitive Comparison of VMware's EBIT

For the Software - Infrastructure subindustry, VMware'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.

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

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

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

VMware 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 Jul. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,163 Mil.

VMware (NYSE:VMW) EBIT Explanation

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

VMware's annualized ROC % for the quarter that ended in Jul. 2023 is calculated as:

	ROC % (Q: Jul. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Apr. 2023 )	+	Invested Capital (Q: Jul. 2023 ))	/ count )
=	2188 * ( 1 - 14.97% )	/	( (29937	+	30936)	/ 2 )
=	1860.4564	/	30436.5
=	6.11 %

where

	Invested Capital		(Q: Apr. 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	))
=	30574	-	2712	-	( 6548	-	max(0, 11673	-	9598	+	6548	))
=	29937

	Invested Capital		(Q: Jul. 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	))
=	32199	-	2979	-	( 6801	-	max(0, 12735	-	11019	+	6801	))
=	30936

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

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

VMware's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jul. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Apr. 2023		Q: Jul. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	2560	/	( ( (1636 + max(-8284, 0))	+	(1644 + max(-8784, 0)) )	/	2 )
=	2560	/	( ( 1636	+	1644 )	/	2 )
=	2560	/	1640
=	156.10 %

where Working Capital is:

	Working Capital		(Q: Apr. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1833	+	0	+	556)	-	(2712	+	7961	+	0)
=	-8284

	Working Capital		(Q: Jul. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2432	+	0	+	519)	-	(2979	+	8756	+	0)
=	-8784

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jul. 2023) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Jul. 2023 )
	=	2163	/	65954.366
	=	3.28 %

VMware EBIT Related Terms

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VMware (VMware) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » VMware Inc (NYSE:VMW) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

N/A

Address

3401 Hillview Avenue, Palo Alto, CA, USA, 94304

Website

https://www.vmware.com

VMware is an industry titan in virtualizing IT infrastructure and became a stand-alone entity after spinning off from Dell Technologies in November 2021. The software provider operates in three segments: licenses; subscriptions and software as a service; and services. VMware's solutions are used across IT infrastructure, application development, and cybersecurity teams, and the company takes a neutral approach to being the cohesion between cloud environments. The Palo Alto, California, firm operates and sells on a global scale, with about half its revenue from the United States, through direct sales, distributors, and partnerships.

Executives

Jean Pierre Brulard	officer: EVP, Worldwide Sales	3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Zane Rowe	officer: Chief Financial Officer & EVP	1600 SMITH STREET, HQSEO, HOUSTON TX 77002
Sumit Dhawan	officer: President	3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Amy Fliegelman Olli	officer: Sr. VP and General Counsel	C/O VMWARE, INC., 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Pebbie L Verdecanna	officer: Interim CAO	3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Nicole Anasenes	director	2600 ANSYS DRIVE, CANONSBURG PA 15317
Slta Spv-2 (gp), L.l.c.	director, 10 percent owner	C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Slta Spv-2, L.p.	director, 10 percent owner	C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Silver Lake Technology Investors V, L.p.	director, 10 percent owner	C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Slta V (gp), L.l.c.	director, 10 percent owner	C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Silver Lake Technology Associates V, L.p.	director, 10 percent owner	C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Silver Lake Partners V De (aiv), L.p.	director, 10 percent owner	C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Sl Spv-2, L.p.	director, 10 percent owner	C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Dell Inc	10 percent owner	ONE DELL WAY, ROUND ROCK TX 78682
Rangarajan (raghu) Raghuram	officer: EVP, Cloud Infrastructure	3401 HILLVIEW AVENUE, PALO ALTO CA 94304