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Cirrus Logic (Cirrus Logic) Owner Earnings per Share (TTM)

: 1.42 (As of Dec. 2023)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Cirrus Logic's Owner Earnings per Share (TTM) ended in Dec. 2023 was $1.42. It's Price-to-Owner-Earnings ratio for today is 61.24.


The historical rank and industry rank for Cirrus Logic's Owner Earnings per Share (TTM) or its related term are showing as below:

CRUS' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 4.62   Med: 20.09   Max: 508.71
Current: 61.33


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Cirrus Logic was 508.71. The lowest was 4.62. And the median was 20.09.


CRUS's Price-to-Owner-Earnings is ranked worse than
75.79% of 442 companies
in the Semiconductors industry
Industry Median: 26.725 vs CRUS: 61.33

Cirrus Logic's Earnings per Share (Diluted) for the three months ended in Dec. 2023 was $2.50. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $3.15. It's PE Ratio ratio for today is 27.61.

Cirrus Logic's EPS without NRI for the three months ended in Dec. 2023 was $2.50. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $5.06. It's PE Ratio without NRI ratio for today is 17.18.


Cirrus Logic Owner Earnings per Share (TTM) Historical Data

The historical data trend for Cirrus Logic's Owner Earnings per Share (TTM) 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.

Cirrus Logic Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.77 2.98 4.27 0.39 2.26

Cirrus Logic Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Owner Earnings per Share (TTM) 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 7.75 2.26 0.16 -0.94 1.42

Competitive Comparison

For the Semiconductors subindustry, Cirrus Logic's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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.


Cirrus Logic Price-to-Owner-Earnings Distribution

For the Semiconductors industry and Technology sector, Cirrus Logic's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Cirrus Logic's Price-to-Owner-Earnings falls into.



Cirrus Logic Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Cirrus Logic's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 176
Depreciation, Depletion and Amortization 55
Change In Deferred Tax -40
5Y Average of Maintenance Capital Expenditure 30
Change In Working Capital -83
Shares Outstanding (Diluted Average) 56

1. Start with "Net Income" from income statement. Cirrus Logic's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was $176 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Cirrus Logic's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Dec. 2023 was $55 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Cirrus Logic's Change In Deferred Tax for the trailing twelve months (TTM) ended in Dec. 2023 was $-40 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $30 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Cirrus Logic's 5-Year Average Maintenance Capital Expenditure = $30 Mil

5. "Change In Working Capital" is from cashflow statement. Cirrus Logic's Change In Working Capital for the trailing twelve months (TTM) ended in Dec. 2023 was $-83 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Cirrus Logic's Shares Outstanding (Diluted Average) for the months ended in Dec. 2023 was 55.592 Mil.

Cirrus Logic's Onwer Earnings Per Share for Dec. 2023 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 176.061 +55.127+-39.821
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-29.8124+-82.735)/55.592
=1.42

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=86.96/1.42
=61.24

* 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.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Cirrus Logic Owner Earnings per Share (TTM) Related Terms

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Cirrus Logic (Cirrus Logic) Business Description

Industry
Traded in Other Exchanges
Address
800 West 6th Street, Austin, TX, USA, 78701
Cirrus Logic Inc is a provider of integrated circuits for audio and voice signal processing applications. The firm's products are organized into two streams: portable audio products, and non-portable audio and other products. These products include analog and mixed-signal components targeting mobile devices, smart homes, and applications in the automotive, energy, and industrial markets. Roughly half of the firm's revenue is generated in China, with the rest coming from the United States, Europe, South Korea, and countries across the world.
Executives
Andrew Brannan officer: VP, Worldwide Sales WESTFIELD HOUSE, 26 WESTFIELD ROAD, EDINBURGH X0 EH11 2QB
Le Duy Loan T director C/O NATIONAL INSTRUMENTS, 11500 MOPAC BLDG B, AUSTIN TX 78759
Scott Thomas officer: VP General Counsel C/O CIRRUS LOGIC INC, 800 WEST 6TH STREET, AUSTIN TX 78701
Alexander M Davern director C/O NATIONAL INSTRUMENTS, 11500 MOPAC BLDG C, AUSTIN TX 78759
Scott Arnold Anderson officer: SVP & GM Mixed Signal Audio 1303 E ALGONQUIN RD, SCHAUMBURG IL 60196
Carl Jackson Alberty officer: VP of MSP 800 W. 6TH STREET, AUSTIN TX 78701
Justin E Dougherty officer: VP, Engineering Operation 800 W. 6TH STREET, AUSTIN TX 78701
Timothy R Dehne director C/O NATIONAL INSTRUMENTS, 11500 MOPAC BLDG B, AUSTIN TX 78759
Venkatesh Nathamuni officer: Chief Financial Officer 800 W. 6TH STREET, AUSTIN TX 78701
Denise Grode officer: Chief Human Resources Officer 800 W. 6TH STREET, AUSTIN TX 78701
Jeffrey W Baumgartner officer: VP, R&D 800 W. 6TH STREET, AUSTIN TX 78701
Allan Hughes officer: VP, Cirrus Logic Internat WESTFIELD HOUSE, 26 WESTFIELD ROAD, EDINBURGH X0 EH11 2QB
Thurman K Case officer: VP and CFO C/O CIRRUS LOGIC INC, 800 W. 6TH STREET, AUSTIN TX 78701
John Forsyth director, officer: CEO 800 W. 6TH STREET, AUSTIN TX 78701
Muhammad Raghib Hussain director 5488 MARVELL LANE, SANTA CLARA CA 95054

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