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The RealReal (The RealReal) EBIT : $-157.5 Mil (TTM As of Dec. 2023)


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What is The RealReal EBIT?

The RealReal's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $-19.0 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $-157.5 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. The RealReal's annualized ROC % for the quarter that ended in Dec. 2023 was -18.22%. The RealReal's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -38.73%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. The RealReal's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -20.64%.


The RealReal EBIT Historical Data

The historical data trend for The RealReal'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.

The RealReal EBIT Chart

The RealReal Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EBIT
Get a 7-Day Free Trial -97.61 -170.47 -214.52 -185.80 -157.49

The RealReal Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 -36.08 -79.75 -38.54 -20.23 -18.97

Competitive Comparison of The RealReal's EBIT

For the Luxury Goods subindustry, The RealReal'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.


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

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

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



The RealReal 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 $-157.5 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.


The RealReal  (NAS:REAL) EBIT Explanation

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

The RealReal'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 )
=-54.624 * ( 1 - -0.17% )/( (307.018 + 293.535)/ 2 )
=-54.7168608/300.2765
=-18.22 %

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))
=452.681 - 92.626 - ( 170.811 - max(0, 176.928 - 229.965+170.811))
=307.018

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))
=446.923 - 106.303 - ( 175.709 - max(0, 188.862 - 235.947+175.709))
=293.535

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

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

The RealReal'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 )
=-75.896/( ( (201.486 + max(-97.918, 0)) + (190.435 + max(-108.53, 0)) )/ 2 )
=-75.896/( ( 201.486 + 190.435 )/ 2 )
=-75.896/195.9605
=-38.73 %

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)
=(13.564 + 24.657 + 20.933) - (92.626 + 1.646 + 62.8)
=-97.918

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(17.226 + 22.246 + 20.766) - (106.303 + 2.214 + 60.251)
=-108.53

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:

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2023 )
=-157.488/762.851
=-20.64 %

* 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.


The RealReal EBIT Related Terms

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


The RealReal (The RealReal) Business Description

Traded in Other Exchanges
Address
55 Francisco Street, Suite 400, San Francisco, CA, USA, 94133
The RealReal is the largest luxury resale platform in the U.S., generating $1.8 billion in 2022 gross merchandise volume and addressing a niche (personal luxury resale) that had previously been serviced by inefficient upscale boutiques and local pawn shops. The firm generates revenue via consignment and first-party sales on its online marketplace, and through direct sales across its brick-and-mortar footprint. With a hands-on approach that actively sources inventory and authenticates every item on its platform, The RealReal is able to justify much higher take rates than peers, working out to roughly 35% of net merchandise value, which excludes returns, cancellations, and first-party sales.
Executives
John E Koryl director, officer: Chief Executive Officer 55 FRANCISCO STREET 4TH FLOOR, SAN FRANCISCO CA 94133
Levesque Rati Sahi officer: Chief Operating Officer 55 FRANCISCO, SAN FRANCISCO CA 94133
Robert J Krolik director 873 SANTA CRUZ AVE, SUITE 206, MENLO PARK CA 94025
Luke Thomas Friang officer: Chief Product & Tech Officer 20614 NE 38TH STREET, SAMMAMISH WA 98074
Todd A Suko officer: Chief Legal Officer and Secy. 7251 WEST 4TH STREET, GREELEY CO 80634
Steve Ming Lo officer: VP, Corporate Controller 55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133
Robert K. Julian officer: Chief Financial Officer C/O SPORTSMAN'S WAREHOUSE, 7035 SOUTH HIGH TECH DRIVE, MIDVALE UT 84047
James R. Miller director 4050 EAST COTTON CENTER BLVD. 6-68, PHOENIX AZ 85040
Julie Wainwright director, officer: CEO, President and Chairperson C/O THE REALREAL, INC., 55 FRANCISCO STREET, SUITE 600, SAN FRANCISCO CA 94133
Arnon Katz officer: Chief Product & Technology Off 3331 VERDUN AVE, SAN MATEO CA 94403
Matt Gustke officer: Chief Financial Officer 55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133
Karen Katz director
Fredrik Bjork officer: Chief Technology Officer 55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133
Baird Gilbert L. Iii director 5075 S. SYRACUSE ST., DENVER CO 80237
Michael Andrew Kumin director C/O GREAT HILL PARTNERS, L.P., 200 CLARENDON STREET, 29TH FLOOR, BOSTON MA 02116