GlaxoSmithKline (CAI:BIOC) EBIT: E£299 Mil (TTM As of Sep. 2016)


What is GlaxoSmithKline EBIT?

GlaxoSmithKline CAI:BIOC +1.17% EBIT is E£299 Mil as of Sep. 2016.

GlaxoSmithKline's earnings before interest and taxes (EBIT) for the three months ended in Sep. 2016 was E£107 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was E£299 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. GlaxoSmithKline's annualized ROC % for the quarter that ended in Sep. 2016 was 58.87%. GlaxoSmithKline's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 was 207.81%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. GlaxoSmithKline's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2016 was 38.44%.

GlaxoSmithKline  (CAI:BIOC) EBIT Explanation

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

GlaxoSmithKline's annualized ROC % for the quarter that ended in Sep. 2016 is calculated as:

ROC % (Q: Sep. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2016 ) + Invested Capital (Q: Sep. 2016 ))/ count )
=428.36 * ( 1 - 11.04% )/( (642.951 + 651.723)/ 2 )
=381.069056/647.337
=58.87 %

where

Invested Capital(Q: Jun. 2016 )
=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))
=1817.523 - 683.777 - ( 494.37 - max(0, 841.645 - 1332.44+494.37))
=642.951

Invested Capital(Q: Sep. 2016 )
=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))
=1880.786 - 663.638 - ( 565.425 - max(0, 803.553 - 1387.471+565.425))
=651.723

Note: The Operating Income data used here is four times the quarterly (Sep. 2016) data.

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

GlaxoSmithKline's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2016 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2016  Q: Sep. 2016
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=428.36/( ( (205.414 + max(-213.719, 0)) + (206.843 + max(-199.445, 0)) )/ 2 )
=428.36/( ( 205.414 + 206.843 )/ 2 )
=428.36/206.1285
=207.81 %

where Working Capital is:

Working Capital(Q: Jun. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(290.536 + 337.39 + 0) - (683.777 + 0 + 157.868)
=-213.719

Working Capital(Q: Sep. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(240.053 + 364.055 + 0) - (663.638 + 0 + 139.915)
=-199.445

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2016) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Sep. 2016 )
=299.168/778.352
=38.44 %

* 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.

GlaxoSmithKline EBIT Related Terms

GlaxoSmithKline EBIT Historical Data

* Premium members only.

The historical data trend for GlaxoSmithKline'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.

GlaxoSmithKline EBIT Chart

GlaxoSmithKline Annual Data
Trend Dec12 Dec13 Dec14 Dec15
EBIT
94.40 114.71 114.45 125.71

GlaxoSmithKline Quarterly Data
Dec12 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -18.49 238.04 -5.66 -40.30 107.09

CAI:BIOC vs PRPH: EBIT Comparison

For the Drug Manufacturers - General subindustry, GlaxoSmithKline'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.

GlaxoSmithKline EV-to-EBIT vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, GlaxoSmithKline's EV-to-EBIT distribution charts can be found below:

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


GlaxoSmithKline 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 Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was E£299 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of E£299 Mil mean?
GlaxoSmithKline (CAI:BIOC) has a EBIT of E£299 Mil as of Sep. 2016. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on GlaxoSmithKline.
Is GlaxoSmithKline's EBIT too high?
GlaxoSmithKline's current EBIT is E£299 Mil.
How does GlaxoSmithKline's EBIT compare to PRPH?
GlaxoSmithKline's EBIT of E£299 Mil can be compared against companies in the Drug Manufacturers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Drug Manufacturers company?
A good EBIT depends on the Drug Manufacturers industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on GlaxoSmithKline. GlaxoSmithKline's current EBIT is E£299 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GlaxoSmithKline stock overvalued right now?
GlaxoSmithKline (CAI:BIOC) has a current EBIT of E£299 Mil. The current EBIT is E£299 Mil. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For GlaxoSmithKline (CAI:BIOC), the current EBIT is E£299 Mil as of Sep. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

GlaxoSmithKline Business Description

Address Boomerang Building, No 46, Block (J) First Section City Centre, Town Centre, Second floor, Fifth District - New Cairo, Cairo, EGY, 11835
GlaxoSmithKline is a pharmaceutical company. It is focused on developing new medicines in respiratory, HIV, oncology, and immune-inflation. The company is segmented into Commercial Operations and Total Research and development. It generates the majority of its revenue from the Commercial Operations segment.