Zip Co (ASX:ZIP) EBIT : A$224.2 Mil (TTM As of Dec. 2023)

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What is Zip Co EBIT?

Zip Co's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2023 was A$235.6 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was A$224.2 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Zip Co's annualized ROC % for the quarter that ended in Dec. 2023 was 6.34%. Zip Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 38.04%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Zip Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 5.94%.

Zip Co EBIT Historical Data

The historical data trend for Zip Co'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.

Zip Co EBIT Chart

Zip Co Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

EBIT

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13.26

18.36

-654.81

-995.85

-98.35

Zip Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
EBIT	Get a 7-Day Free Trial															-165.27	-830.58	-86.99	-11.36	235.55

Competitive Comparison of Zip Co's EBIT

For the Credit Services subindustry, Zip Co'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.

Zip Co's EV-to-EBIT Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Zip Co's EV-to-EBIT distribution charts can be found below:

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

Zip Co 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 semi-annually data reported by the company within the most recent 12 months, which was A$224.2 Mil.

Zip Co (ASX:ZIP) EBIT Explanation

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

Zip Co'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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	224.498 * ( 1 - 16.52% )	/	( (3033.309	+	2882.478)	/ 2 )
=	187.4109304	/	2957.8935
=	6.34 %

where

	Invested Capital		(Q: Jun. 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	))
=	3394.767	-	213.637	-	( 283.106	-	max(0, 222.445	-	370.266	+	283.106	))
=	3033.309

	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	))
=	3374.174	-	331.034	-	( 160.662	-	max(0, 339.515	-	2934.034	+	160.662	))
=	2882.478

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

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

Zip Co'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: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	471.104	/	( ( (23.733 + max(-212.347, 0))	+	(19.4 + max(2433.857, 0)) )	/	2 )
=	471.104	/	( ( 23.733	+	2453.257 )	/	2 )
=	471.104	/	1238.495
=	38.04 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	10.098)	-	(213.637	+	0	+	8.808)
=	-212.347

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2624.856	+	0	+	148.516)	-	(331.034	+	0	+	8.481)
=	2433.857

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	224.193	/	3771.726
	=	5.94 %

Zip Co EBIT Related Terms

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Zip Co (ASX:ZIP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Zip Co Ltd (ASX:ZIP) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

ZIZTF:USA

Address

126 Phillip Street, Level 5, Sydney, NSW, AUS, 2000

Website

https://www.zipmoneylimited.com.au

Zip is a diversified finance provider, offering consumer financing via a line of credit (via Zip Pay and Zip Money) and instalment-based finance (via QuadPay, Spotii, Twisto, and PayFlex); as well as lending to small to midsize enterprises (via Zip Business). Zip's fortunes are largely tied to the buy now, pay later, or BNPL, industry. Most of its products—Zip Pay, QuadPay (Zip U.S.), and PayFlex—do not charge interest based on outstanding balances. Around 60%-70% of Zip Pay's/Zip Money's revenue is derived from customers, mainly via account fees and interest. Meanwhile, its instalment businesses primarily generate revenue by receiving a margin from merchants, which compensates it for accepting all nonpayment risk and for encouraging consumers to transact more frequently.