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Dow's earnings before interest and taxes (EBIT) for the three months ended in Sep. 2024 was $523 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2024 was $1,821 Mil.
EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Dow's annualized ROC % for the quarter that ended in Sep. 2024 was 2.51%. Dow's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 7.98%.
EBIT is also linked to Joel Greenblatt's definition of earnings yield. Dow's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 4.15%.
The historical data trend for Dow'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.
Dow Annual Data | |||||||||||||||||
Trend | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||
EBIT | Get a 7-Day Free Trial | -314.00 | 2,898.00 | 8,876.00 | 6,752.00 | 1,402.00 |
Dow Quarterly Data | ||||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
EBIT | Get a 7-Day Free Trial | 609.00 | -155.00 | 648.00 | 805.00 | 523.00 |
For the Chemicals subindustry, Dow'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.
For the Chemicals industry and Basic Materials sector, Dow's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Dow's EV-to-EBIT falls into.
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. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,821 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.
Dow (NYSE:DOW) EBIT Explanation
1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Dow's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:
ROC % (Q: Sep. 2024 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Jun. 2024 ) | + | Invested Capital (Q: Sep. 2024 )) | / count ) |
= | 1560 * ( 1 - 25.93% ) | / | ( (45550 | + | 46402) | / 2 ) |
= | 1155.492 | / | 45976 | |||
= | 2.51 % |
where
Invested Capital | (Q: Jun. 2024 ) | |||||||||||
= | 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 | )) |
= | 58526 | - | 9635 | - | ( 3341 | - | max(0, 10308 | - | 18053 | + | 3341 | )) |
= | 45550 |
Invested Capital | (Q: Sep. 2024 ) | |||||||||||
= | 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 | )) |
= | 59389 | - | 10104 | - | ( 2883 | - | max(0, 10827 | - | 17977 | + | 2883 | )) |
= | 46402 |
Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.
2. Joel Greenblatt's definition of Return on Capital:
Dow's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 is calculated as:
ROC (Joel Greenblatt) % | (Q: Sep. 2024 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Jun. 2024 | Q: Sep. 2024 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | 2092 | / | ( ( (22911 + max(3096, 0)) | + | (23394 + max(3054, 0)) ) | / | 2 ) |
= | 2092 | / | ( ( 26007 | + | 26448 ) | / | 2 ) |
= | 2092 | / | 26227.5 | ||||
= | 7.98 % |
where Working Capital is:
Working Capital | (Q: Jun. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (5098 | + | 6459 | + | 1174) | - | (9635 | + | 0 | + | 0) |
= | 3096 |
Working Capital | (Q: Sep. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (5380 | + | 6741 | + | 1037) | - | (10104 | + | 0 | + | 0) |
= | 3054 |
When net working capital is negative, 0 is used.
Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.
3. It is also linked to Joel Greenblatt's definition of Earnings Yield:
Dow's Earnings Yield (Joel Greenblatt) % for today is calculated as:
Earnings Yield (Joel Greenblatt) % | = | EBIT (TTM) | / | Enterprise Value (Q: Sep. 2024 ) |
= | 1821 | / | 43926.785 | |
= | 4.15 % |
* 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.
Thank you for viewing the detailed overview of Dow's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.
Richard K Davis | director | 800 NICOLLET MALL, MINNEAPOLIS MN 55402 |
Jeffrey L. Tate | officer: Chief Financial Officer | 2211 H.H. DOW WAY, MIDLAND MI 48674 |
Debra L. Dial | director | 208 S. AKARD, 29TH FLOOR, DALLAS TX 75202 |
Lisa Bryant | officer: Chief Human Resources Officer | 2211 H.H. DOW WAY, MIDLAND MI 48674 |
Howard I Ungerleider | officer: President and CFO | 2211 H.H. DOW WAY, MIDLAND MI 48674 |
Jerri Devard | director | 120 E 87TH STREET, #P6A, NEW YORK NY 10128 |
Jacqueline C. Hinman | director | 9191 SOUTH JAMAICA STREET, ENGLEWOOD CO 80112 |
James R Fitterling | officer: Chief Executive Officer | 2211 H.H. DOW WAY, MIDLAND MI 48674 |
Moreno Mejia Luis Alberto | director | C/O DOW INC., 2211 H.H. DOW WAY, MIDLAND MI 48674 |
John Maurice Sampson | officer: Senior Vice President | C/O DOW INC., 2211 H.H. DOW WAY, MIDLAND MI 48674 |
Peter Holicki | officer: Senior Vice President | 2211 H.H. DOW WAY, MIDLAND MI 48674 |
Banister Gaurdie E. Jr. | director | 2211 H.H. DOW WAY, MIDLAND MI 48674 |
Diego Donoso | officer: President, Pkg & Spec Plastics | 2211 H.H. DOW WAY, MIDLAND MI 48674 |
Jack Broodo | officer: President, Feedstocks & Energy | 2211 H.H. DOW WAY, MIDLAND MI 48640 |
Jane Palmieri | officer: President, Ind Interm & Infras | 2211 H.H. DOW WAY, MIDLAND MI 48674 |
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