EDMCQ (Education Management) EBIT: $79 Mil (TTM As of Jun. 2014)


What is Education Management EBIT?

Education Management EDMCQ -99.00% EBIT is $79 Mil as of Jun. 2014.

Education Management's earnings before interest and taxes (EBIT) for the three months ended in Jun. 2014 was $-6 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2014 was $79 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Education Management's annualized ROC % for the quarter that ended in Jun. 2014 was -1.74%. Education Management's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2014 was -4.41%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield.

Education Management  (OTCPK:EDMCQ) EBIT Explanation

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

Education Management's annualized ROC % for the quarter that ended in Jun. 2014 is calculated as:

ROC % (Q: Jun. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2014 ) + Invested Capital (Q: Jun. 2014 ))/ count )
=-25.7 * ( 1 - 0% )/( (1508.902 + 1445.905)/ 2 )
=-25.7/1477.4035
=-1.74 %

where

Invested Capital(Q: Mar. 2014 )
=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))
=1877.35 - 190.98 - ( 177.468 - max(0, 454.021 - 812.524+177.468))
=1508.902

Invested Capital(Q: Jun. 2014 )
=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))
=1877.036 - 190.49 - ( 270.567 - max(0, 635.325 - 875.966+270.567))
=1445.905

Note: The Operating Income data used here is four times the quarterly (Jun. 2014) data.

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

Education Management's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2014 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2014 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2014  Q: Jun. 2014
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-25.7/( ( (442.902 + max(149.734, 0)) + (429.457 + max(143.931, 0)) )/ 2 )
=-25.7/( ( 592.636 + 573.388 )/ 2 )
=-25.7/583.012
=-4.41 %

where Working Capital is:

Working Capital(Q: Mar. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(176.847 + 0 + 415.033) - (190.98 + 239.304 + 11.862)
=149.734

Working Capital(Q: Jun. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(210.182 + 0 + 337.309) - (190.49 + 197.725 + 15.345)
=143.931

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2014) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Jun. 2014 )
=78.97/0.000
= %

* 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.

Education Management EBIT Related Terms

Education Management EBIT Historical Data

* Premium members only.

The historical data trend for Education Management'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.

Education Management EBIT Chart

Education Management Annual Data
Trend Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 371.60 501.27 337.09 197.65 78.97

Education Management Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
EBIT Get a 7-Day Free Trial 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 22.26 11.92 33.08 40.40 -6.43

EDMCQ vs ZVO: EBIT Comparison

For the Education & Training Services subindustry, Education Management'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.

Education Management EV-to-EBIT vs Education Industry

For the Education industry and Consumer Defensive sector, Education Management's EV-to-EBIT distribution charts can be found below:

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


Education Management 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. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was $79 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 $79 Mil mean?
Education Management (EDMCQ) has a EBIT of $79 Mil as of Jun. 2014. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Education Management.
Is Education Management's EBIT too high?
Education Management's current EBIT is $79 Mil.
How does Education Management's EBIT compare to ZVO?
Education Management's EBIT of $79 Mil can be compared against companies in the Education 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 an Education company?
A good EBIT depends on the Education 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 Education Management. Education Management's current EBIT is $79 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Education Management stock overvalued right now?
Education Management (EDMCQ) has a current EBIT of $79 Mil. The current EBIT is $79 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 Education Management (EDMCQ), the current EBIT is $79 Mil as of Jun. 2014. 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.

Education Management Business Description

Address 210 Sixth Avenue, 33rd Floor, Pittsburgh, PA, USA, 15222
Education Management Corp provides post-secondary education in North America. It offers academic programs to students through campus-based and online instruction, or through a combination of both. The company operates in four segments including The Art Institutes; Argosy University; Brown Mackie Colleges and South University. The Art Institutes focus on applied arts in creative professions such as graphic design, media arts, and animation, culinary arts. Brown Mackie Colleges offer flexible Associate's and non-degree diploma programs that enable students to develop skills for entry-level positions in high-demand vocational specialties. South University offers academic programs in health profession and business disciplines, health sciences, nursing, criminal justice, psychology, and IT.