>
Switch to:

Resources Connection Owner Earnings per Share (TTM)

: 0.16 (As of Aug. 2021)
View and export this data going back to 2000. Start your Free Trial

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)."

Resources Connection's Owner Earnings per Share (TTM) ended in Aug. 2021 was $0.16. It's Price-to-Owner-Earnings ratio for today is 106.31.


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

NAS:RGP' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 5.97   Med: 20.77   Max: 246.23
Current: 107.66

5.97
246.23

During the past 13 years, the highest Price-to-Owner-Earnings ratio of Resources Connection was 246.23. The lowest was 5.97. And the median was 20.77.


NAS:RGP's Price-to-Owner-Earnings is ranked lower than
93% of the 606 Companies
in the Business Services industry.

( Industry Median: 16.59 vs. NAS:RGP: 107.66 )

Resources Connection's Earnings per Share (Diluted) for the three months ended in Aug. 2021 was $0.39. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Aug. 2021 was $1.08. It's PE Ratio ratio for today is 15.75.

Resources Connection's EPS without NRI for the three months ended in Aug. 2021 was $0.39. Its EPS without NRI for the trailing twelve months (TTM) ended in Aug. 2021 was $1.08. It's PE Ratio without NRI ratio for today is 15.75.


Resources Connection Owner Earnings per Share (TTM) Historical Data

The historical data trend for Resources Connection'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.

Resources Connection Annual Data
Trend May12 May13 May14 May15 May16 May17 May18 May19 May20 May21
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.62 0.18 1.04 1.13 0.72

Resources Connection Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
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 1.80 1.49 1.40 0.72 0.16

Competitive Comparison

For the Consulting Services subindustry, Resources Connection's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) 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.

   

Resources Connection Owner Earnings per Share (TTM) Distribution

For the Business Services industry and Industrials sector, Resources Connection's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Resources Connection's Owner Earnings per Share (TTM) falls into.



Resources Connection 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)

Resources Connection's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 35.9
Depreciation, Depletion and Amortization 8.6
Change In Deferred Tax 12.3
5Y Average of Maintenance Capital Expenditure 3.4
Change In Working Capital -48.1
Shares Outstanding (Diluted Average) 33.3

1. Start with "Net Income" from income statement. Resources Connection's Net Income for the trailing twelve months (TTM) ended in Aug. 2021 was $35.9 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Resources Connection's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Aug. 2021 was $8.6 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. Resources Connection's Change In Deferred Tax for the trailing twelve months (TTM) ended in Aug. 2021 was $12.3 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $3.4 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 year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, 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.

Resources Connection's 5-Year Average Maintenance Capital Expenditure = $3.4 Mil

5. "Change In Working Capital" is from cashflow statement. Resources Connection's Change In Working Capital for the trailing twelve months (TTM) ended in Aug. 2021 was $-48.1 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. Resources Connection's Shares Outstanding (Diluted Average) for the months ended in Aug. 2021 was 33.313 Mil.

Resources Connection's Onwer Earnings Per Share for Aug. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 35.869 +8.61+12.268
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-3.3682662604704+-48.128)/33.313
=0.16

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=17.01/0.16
=106.31

* 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.


Resources Connection Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Resources Connection's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Resources Connection Business Description

Resources Connection logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
17101 Armstrong Avenue, Suite 100, Irvine, CA, USA, 92614
Resources Connection Inc provides consulting and business initiative support services primarily through its operative subsidiary, Resources Global Professionals. 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
Duchene Kate W director, officer: President & CEO C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Ryu Jennifer Y officer: CFO 17101 ARMSTRONG AVENUE IRVINE CA 92614
Pisano A Robert director C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Von Maltzan Marco director 17101 ARMSTRONG AVE #100 RGP IRVINE CA 92614
Crawford Susan J director 17101 ARMSTRONG AVE IRVINE CA 92614
Shih Anne director 17101 ARMSTRONG AVENUE IRVINE CA 92614
Wargotz Michael H director AXCESS WORLDWIDE 515 MADISON AVE., 15TH FLOOR NEW YORK NY 10022
Cherbak Anthony director 695 TOWN CENTER DRIVE SUITE 600 COSTA MESA CA 92626
Kistinger Robert F director 17101 ARMSTRONG AVE IRVINE CA 92614
Sykes Jolene director 695 TOWN CENTER DRIVE SUITE 606 COSTA MESA CA 92626
Dimick Neil F director BUILDING 4, TRIDENT PLACE MOSQUITO WAY HATFIELD, HERTFORDSHIRE X0 AL10 9UL
Brackney Timothy L officer: President and COO 12 ANDERSON WAY MENLO PARK CA 94025
Bower John D officer: Chief Accounting Officer C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Murray Donald B director RESOURCES CONNECTION 695 TOWN CTR DR STE 600 COSTA MESA CA 92626
Mueller Herbert M officer: CFO & EVP PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: MUELLER HERBERT M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}

Resources Connection Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)