Zoom Video Communications (NAS:ZM) EBIT

: $124 Mil (TTM As of Jul. 2023)

View and export this data going back to 2019. Start your Free Trial

Zoom Video Communications's earnings before interest and taxes (EBIT) for the three months ended in Jul. 2023 was $178 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2023 was $124 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Zoom Video Communications's annualized ROC % for the quarter that ended in Jul. 2023 was 14.89%. Zoom Video Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2023 was 209.93%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Zoom Video Communications's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jul. 2023 was 0.82%.

Zoom Video Communications EBIT Historical Data

The historical data trend for Zoom Video Communications'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.

Zoom Video Communications Annual Data

Trend

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

EBIT

6.17

12.70

659.85

1,063.59

245.43

Zoom Video Communications Quarterly Data
	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23
EBIT																121.74	66.51	-129.89	9.74	177.62

Zoom Video Communications 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 $124 Mil.

Zoom Video Communications (NAS:ZM) EBIT Explanation

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

Zoom Video Communications'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 )
=	710.472 * ( 1 - 27.32% )	/	( (3518.636	+	3415.662)	/ 2 )
=	516.3710496	/	3467.149
=	14.89 %

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	))
=	8536.21	-	293.788	-	( 5596.391	-	max(0, 1843.893	-	6567.679	+	5596.391	))
=	3518.636

	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	))
=	8923.108	-	223.927	-	( 6028.514	-	max(0, 1767.473	-	7050.992	+	6028.514	))
=	3415.662

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

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

Zoom Video Communications'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 )
=	710.472	/	( ( (330.743 + max(-867.092, 0))	+	(346.13 + max(-737.91, 0)) )	/	2 )
=	710.472	/	( ( 330.743	+	346.13 )	/	2 )
=	710.472	/	338.4365
=	209.93 %

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)
=	(590.694	+	0	+	363.448)	-	(293.788	+	1369.353	+	158.093)
=	-867.092

	Working Capital		(Q: Jul. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(571.049	+	0	+	435.002)	-	(223.927	+	1384.587	+	135.447)
=	-737.91

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:

Zoom Video Communications's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Jul. 2023 )
	=	123.981	/	15108.215
	=	0.82 %

Zoom Video Communications EBIT Related Terms

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

Zoom Video Communications (NAS:ZM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Zoom Video Communications Inc (NAS:ZM) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

ZM:Mexico 5ZM:Germany Z1OM34:Brazil ZOOM:Austria

Address

55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113

Website

https://www.zoom.com

Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

Executives

Cindy L Hoots	director	C/O ZOOM VIDEO COMMUNICATIONS, INC, 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Gregory Tomb	officer: President	650 CASTRO ST, SUITE 400, MOUNTAIN VIEW CA 94041
William R Mcdermott	director	2225 LAWSON LANE, SANTA CLARA CA 95054
Santiago Subotovsky	director	C/O EMERGENCE CAPITAL PARTNERS, 160 BOVENT ROAD SUITE 300, SAN MATEO CA 94402
Janet Napolitano	director	C/O VIR BIOTECHNOLOGY, INC., 499 ILLINOIS STREET, SUITE 500, SAN FRANCISCO CA 94158
Shane Crehan	officer: Chief Accounting Officer	C/O EVENTBRITE, INC., 155 5TH STREET, 7TH FLOOR, SAN FRANCISCO CA 94103
Velchamy Sankarlingam	officer: Pres. of Engineering & Product	C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Herbert Raymond Mcmaster	director	C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Michael Saul Abramson	10 percent owner	C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Douglas M Leone	10 percent owner	C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Ryan Azus	officer: Chief Revenue Officer	C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Bonus Goal International Ltd	10 percent owner	C/O 7/F, CHEUNG KONG CENTER, 2 QUEEN'S ROAD CENTRAL, HONG KONG K3 00000
Salesforce Com Inc	10 percent owner	SALESFORCE TOWER, 415 MISSION STREET 3RD FL, SAN FRANCISCO CA 94105
Sequoia Capital Global Growth Ii Principals Fund, L.p.	10 percent owner	2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Qualcomm Inc/de	10 percent owner	5775 MOREHOUSE DR, SAN DIEGO CA 92121