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Target Corp  (NYSE:TGT) EBIT: $4,204 Mil (TTM As of Apr. 2019)

Target Corp's earnings before interest and taxes (EBIT) for the three months ended in Apr. 2019 was $1,135 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2019 was $4,204 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Target Corp's annualized ROC % for the quarter that ended in Apr. 2019 was 16.24%. Target Corp's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2019 was 17.72%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Target Corp's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Apr. 2019 was 8.17%.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Target Corp Annual Data

Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19
EBIT Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4,535.00 4,910.00 4,864.00 4,224.00 4,110.00

Target Corp Quarterly Data

Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19
EBIT 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 Premium Member Only Premium Member Only Premium Member Only 1,041.00 1,133.00 819.00 1,117.00 1,135.00

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 Apr. 2019 was 1133 (Jul. 2018 ) + 819 (Oct. 2018 ) + 1117 (Jan. 2019 ) + 1135 (Apr. 2019 ) = $4,204 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

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

Target Corp's annualized ROC % for the quarter that ended in Apr. 2019 is calculated as:

ROC %(Q: Apr. 2019 )
=NOPAT/Average Invested Capital
=Operating Income*(1-Tax Rate)/( (Invested Capital (Q: Jan. 2019 ) + Invested Capital (Q: Apr. 2019 ))/2)
=4540 * ( 1 - 22.43% )/( (21016 + 22357)/2)
=3521.678/21686.5
=16.24 %

where

Invested Capital(Q: Jan. 2019 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt + Total Stockholders Equity - Cash
=10223 + 1052 + 11297 - 1556
=21016

Invested Capital(Q: Apr. 2019 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt + Total Stockholders Equity - Cash
=11357 + 1056 + 11117 - 1173
=22357

Note: The Operating Income data used here is four times the quarterly (Apr. 2019) operating income data.

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

Target Corp's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2019 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2019 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2019  Q: Apr. 2019
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/2 )
=4540/( ( (25533 + max(-4099, 0)) + (25706 + max(-1749, 0)) )/2 )
=4540/( ( 25533 + 25706 )/2 )
=4540/25619.5
=17.72 %

where Working Capital is:

Working Capital(Q: Jan. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 9497 + 366) - (11595 + 0 + 2367)
=-4099

Working Capital(Q: Apr. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 9060 + 1374) - (12183 + 0 + 0)
=-1749

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2019) EBIT data.

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

Target Corp's Earnings Yield (Joel Greenblatt) %for the quarter that ended in Apr. 2019 is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Apr. 2019 )
=4204/51459.69
=8.17 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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