Primo Water (TSX:PRMW) EBIT : C$218 Mil (TTM As of Dec. 2023)

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What is Primo Water EBIT?

Primo Water's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was C$22 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was C$218 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Primo Water's annualized ROC % for the quarter that ended in Dec. 2023 was 2.69%. Primo Water's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 8.28%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Primo Water's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 4.04%.

Primo Water EBIT Historical Data

The historical data trend for Primo Water'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.

Primo Water EBIT Chart

Primo Water Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

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93.90

-90.82

103.55

198.34

217.61

Primo Water 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															154.46	38.04	69.22	89.03	22.14

Competitive Comparison of Primo Water's EBIT

For the Beverages - Non-Alcoholic subindustry, Primo Water'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.

Primo Water's EV-to-EBIT Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Primo Water's EV-to-EBIT distribution charts can be found below:

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

Primo Water 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 C$218 Mil.

Primo Water (TSX:PRMW) EBIT Explanation

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

Primo Water'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 )
=	77.276 * ( 1 - -43.49% )	/	( (4428.56	+	3830.403)	/ 2 )
=	110.8833324	/	4129.4815
=	2.69 %

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	))
=	4863.041	-	568.708	-	( 132.333	-	max(0, 846.093	-	711.866	+	132.333	))
=	4428.56

	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	))
=	4726.457	-	306.019	-	( 681.399	-	max(0, 571.656	-	1161.691	+	681.399	))
=	3830.403

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

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

Primo Water'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 )
=	88.544	/	( ( (1197.899 + max(10.825, 0))	+	(929.058 + max(-50.848, 0)) )	/	2 )
=	88.544	/	( ( 1208.724	+	929.058 )	/	2 )
=	88.544	/	1068.891
=	8.28 %

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)
=	(375.485	+	143.158	+	60.89)	-	(568.708	+	0	+	0)
=	10.825

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(196.41	+	63.458	+	207.544)	-	(306.019	+	0	+	212.241)
=	-50.848

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:

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

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	218.429	/	5404.462
	=	4.04 %

Primo Water EBIT Related Terms

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Primo Water (TSX:PRMW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » Primo Water Corp (TSX:PRMW) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

PRMW:USA GC6:Germany

Address

1200 Britannia Road East, Mississauga, ON, CAN, L4W 4T5

Website

https://www.primowatercorp.com

Primo Water is a pure-play water provider with a variety of products and services, including water delivery, exchange, refill/filtration, and water dispensers in 21 countries, mostly in North America and Europe. The firm usually initiates the customer relationship with the sale of water dispensers, and then generates recurring revenue via the water direct and exchange services (two thirds of total sales) by delivering large-format (typically three gallons or greater) water bottles to residential and commercial customers for use atop or inside the dispensers. Primo generates 75% of revenue and all its profits in North America, while its European operation has yet to turn a profit.