Resources Connection (NAS:RGP) EBIT

: $73.2 Mil (TTM As of May. 2023)

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Resources Connection's earnings before interest and taxes (EBIT) for the three months ended in May. 2023 was $17.1 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2023 was $73.2 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Resources Connection's annualized ROC % for the quarter that ended in May. 2023 was 13.73%. Resources Connection's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2023 was 78.83%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Resources Connection's Earnings Yield (Joel Greenblatt) % for the quarter that ended in May. 2023 was 18.17%.

Resources Connection EBIT Historical Data

The historical data trend for Resources Connection'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.

Resources Connection Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

EBIT

50.16

37.29

24.28

84.03

73.17

Resources Connection Quarterly Data
	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23
EBIT																28.08	25.45	23.51	7.16	17.05

Resources Connection 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 May. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $73.2 Mil.

Resources Connection (NAS:RGP) EBIT Explanation

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

Resources Connection's annualized ROC % for the quarter that ended in May. 2023 is calculated as:

	ROC % (Q: May. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2023 )	+	Invested Capital (Q: May. 2023 ))	/ count )
=	68.196 * ( 1 - 31.42% )	/	( (345.191	+	335.975)	/ 2 )
=	46.7688168	/	340.583
=	13.73 %

where

	Invested Capital		(Q: Feb. 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	))
=	532.32	-	83.224	-	( 103.905	-	max(0, 102.09	-	262.554	+	103.905	))
=	345.191

	Invested Capital		(Q: May. 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	))
=	531.999	-	79.24	-	( 116.784	-	max(0, 97.084	-	264.066	+	116.784	))
=	335.975

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

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

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

	ROC (Joel Greenblatt) %		(Q: May. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Feb. 2023		Q: May. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	68.2	/	( ( (32.602 + max(56.283, 0))	+	(31.236 + max(52.919, 0)) )	/	2 )
=	68.2	/	( ( 88.885	+	84.155 )	/	2 )
=	68.2	/	86.52
=	78.83 %

where Working Capital is:

	Working Capital		(Q: Feb. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(143.584	+	0	+	7.046)	-	(83.224	+	0	+	11.123)
=	56.283

	Working Capital		(Q: May. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(137.356	+	0	+	5.187)	-	(79.24	+	0	+	10.384)
=	52.919

When net working capital is negative, 0 is used.

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

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

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

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: May. 2023 )
	=	73.17	/	402.710
	=	18.17 %

Resources Connection EBIT Related Terms

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Resources Connection (NAS:RGP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Resources Connection Inc (NAS:RGP) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

RCO:Germany

Address

17101 Armstrong Avenue, Suite 100, Irvine, CA, USA, 92614

Website

https://www.rgp.com

Resources Connection Inc provides consulting and business initiative support services primarily through its operative subsidiary, Resources Global Professionals. It has two segments RGP ( Resources Global Professionals.) and Other segments. The company offers transformation and improvement, financial reporting and analysis, strategy development, and program and project management services and support. Its clients operate in the accounting, finance, corporate governance, risk and compliance management, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, and legal and regulatory sectors.

Executives

Susan Collyns	director	6053 W CENTURY BLVD STE 1100, C/O CALIFORNIA PIZZA KITCHEN INC, LOS ANGLES CA 90045-6430
David P White	director	17101 ARMSTRONG AVE., STE 100, IRVINE CA 92614
Lisa Pierozzi	director	17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Timothy L Brackney	officer: President and COO	17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Jennifer Y Ryu	officer: Interim CFO	17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Kate W Duchene	officer: President & CEO	17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Michael H Wargotz	director	AXCESS WORLDWIDE, 515 MADISON AVE., 15TH FLOOR, NEW YORK NY 10022
Anne Shih	director	17101 ARMSTRONG AVENUE, IRVINE CA 92614
Maltzan Marco Von	director	17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Herbert M Mueller	officer: CFO & EVP
Susan J Crawford	director	17101 ARMSTRONG AVE, IRVINE CA 92614
Tracy B Stephens	officer: EVP & COO	360 WESTMINSTER, HOUSTON TX 77024
Nathan W Franke	officer: EVP and Chief Financial Office	17101 ARMSTRONG AVE, IRVINE CA 92614
Robert F Kistinger	director	17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Thomas Christopoul	director	RESOURCES CONNECTION INC, 17101 ARMSTRONG AVENUE, IRVINE CA 92614