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Afterpay (Afterpay) EBIT : $-121.5 Mil (TTM As of Jun. 2021)


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What is Afterpay EBIT?

Afterpay's earnings before interest and taxes (EBIT) for the six months ended in Jun. 2021 was $-71.6 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2021 was $-121.5 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Afterpay's annualized ROC % for the quarter that ended in Jun. 2021 was -6.44%. Afterpay's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2021 was -15.40%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Afterpay's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2021 was -0.98%.

Afterpay EBIT Historical Data

The historical data trend for Afterpay'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.

Afterpay EBIT Chart

Afterpay Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21
EBIT
-10.32 -0.73 -21.62 -2.93 -122.25

Afterpay Semi-Annual Data
Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21
EBIT Get a 7-Day Free Trial Premium Member Only -10.23 -18.74 15.84 -49.88 -71.61

Competitive Comparison of Afterpay's EBIT

For the Software - Infrastructure subindustry, Afterpay'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.

Afterpay's EV-to-EBIT Distribution in the Software Industry

For the Software industry and Technology sector, Afterpay's EV-to-EBIT distribution charts can be found below:

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


Afterpay 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 Jun. 2021 adds up the semi-annually data reported by the company within the most recent 12 months, which was $-121.5 Mil.

* 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.

Afterpay  (OTCPK:AFTPY) EBIT Explanation

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

Afterpay's annualized ROC % for the quarter that ended in Jun. 2021 is calculated as:

ROC % (Q: Jun. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2020 ) + Invested Capital (Q: Jun. 2021 ))/ count )
=-112.344 * ( 1 - 32.08% )/( (1099.855 + 1271.27)/ 2 )
=-76.3040448/1185.5625
=-6.44 %

where

Invested Capital(Q: Dec. 2020 )
=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))
=1608.856 - 153.643 - ( 355.358 - max(0, 165.219 - 1355.2+355.358))
=1099.855

Invested Capital(Q: Jun. 2021 )
=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))
=2382.437 - 234.143 - ( 877.024 - max(0, 248.774 - 2031.924+877.024))
=1271.27

Note: The Operating Income data used here is two times the semi-annual (Jun. 2021) data.

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

Afterpay's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2021 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2020  Q: Jun. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-143.228/( ( (6.212 + max(837.399, 0)) + (32.164 + max(983.959, 0)) )/ 2 )
=-143.228/( ( 843.611 + 1016.123 )/ 2 )
=-143.228/929.867
=-15.40 %

where Working Capital is:

Working Capital(Q: Dec. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(989.498 + 0 + 10.344) - (153.643 + 1.522 + 7.278)
=837.399

Working Capital(Q: Jun. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1187.826 + 0 + 43.224) - (234.143 + 1.894 + 11.054)
=983.959

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2021) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Jun. 2021 )
=-121.491/12385.762
=-0.98 %

* 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.

Afterpay EBIT Related Terms

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Afterpay (Afterpay) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Afterpay Ltd (OTCPK:AFTPY) » Definitions » EBIT
Comparable Companies
ASX:MP1 ASX:RHP ASX:PGL ASX:SPT ASX:WJA ASX:A2B ASX:NET ASX:FTC ASX:SEN ASX:SKF MSFT ADBE ORCL VMW XAMS:ADYEN SQ SPLK SNPS VRSN OKTA
Traded in Other Exchanges
N/A
Address
406 Collins Street, Level 5, Melbourne, VIC, AUS, 3000
Website
https://www.afterpay.com
Afterpay started its buy now, pay later, or BNPL, financing product in calendar 2015, listed on the ASX in May 2016 and merged with Touchcorp (who designed and built Afterpay's platform software) in June 2017. Its BNPL platform allows consumers to make acquisitions at merchant partners by paying instalments every two weeks. If consumers pay on time, they transact on Afterpay for free. Afterpay primarily generates revenue from receiving a margin from the merchant. Afterpay pays the merchant the full purchase price immediately on the sale, less this margin. The margin compensates Afterpay for accepting all non-payment risk, including credit risk and fraud by the consumer, and for encouraging consumers to purchase greater dollar values and transact more frequently.