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ESAB's earnings before interest and taxes (EBIT) for the three months ended in Sep. 2024 was $106 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2024 was $452 Mil.
EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. ESAB's annualized ROC % for the quarter that ended in Sep. 2024 was 10.23%. ESAB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 57.49%.
EBIT is also linked to Joel Greenblatt's definition of earnings yield. ESAB's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 5.22%.
The historical data trend for ESAB'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.
ESAB Annual Data | |||||||||||
Trend | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||
EBIT | 279.12 | 223.76 | 325.17 | 352.16 | 428.28 |
ESAB Quarterly Data | |||||||||||||||||
Dec19 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
EBIT | Get a 7-Day Free Trial | 101.15 | 127.83 | 98.50 | 119.36 | 106.02 |
For the Metal Fabrication subindustry, ESAB'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 Industrial Products industry and Industrials sector, ESAB's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where ESAB'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 $452 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.
ESAB (NYSE:ESAB) EBIT Explanation
1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
ESAB'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 ) |
= | 431.56 * ( 1 - 20.28% ) | / | ( (3314.447 | + | 3412.772) | / 2 ) |
= | 344.039632 | / | 3363.6095 | |||
= | 10.23 % |
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 | )) |
= | 3967.111 | - | 424.194 | - | ( 228.47 | - | max(0, 651.096 | - | 1212.553 | + | 228.47 | )) |
= | 3314.447 |
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 | )) |
= | 4084.534 | - | 418.092 | - | ( 253.67 | - | max(0, 637.071 | - | 1221.511 | + | 253.67 | )) |
= | 3412.772 |
Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.
2. Joel Greenblatt's definition of Return on Capital:
ESAB'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 ) |
= | 424.06 | / | ( ( (376.938 + max(355.321, 0)) | + | (390.85 + max(352.145, 0)) ) | / | 2 ) |
= | 424.06 | / | ( ( 732.259 | + | 742.995 ) | / | 2 ) |
= | 424.06 | / | 737.627 | ||||
= | 57.49 % |
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) |
= | (431.207 | + | 426.52 | + | 126.356) | - | (424.194 | + | 27.862 | + | 176.706) |
= | 355.321 |
Working Capital | (Q: Sep. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (420.938 | + | 422.654 | + | 124.249) | - | (418.092 | + | 27.844 | + | 169.76) |
= | 352.145 |
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:
ESAB's Earnings Yield (Joel Greenblatt) % for today is calculated as:
Earnings Yield (Joel Greenblatt) % | = | EBIT (TTM) | / | Enterprise Value (Q: Sep. 2024 ) |
= | 451.696 | / | 8658.939 | |
= | 5.22 % |
* 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 ESAB's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.
Rhonda L Jordan | director | KRAFT FOODS INC, THREE LAKES DRIVE, NORTHFIELD IL 60093 |
Shyam Kambeyanda | officer: President and CEO | 2711 CENTERVILLE ROAD, SUITE 400, WILMINGTON DE 19808 |
Kevin J Johnson | officer: Chief Financial Officer | 909 ROSE AVENUE, SUITE 800, NORTH BETHESDA MD 20852 |
Rajiv Vinnakota | director | 8730 STONY POINT PARKWAY, SUITE 150, RICHMOND VA 23235 |
Christopher M Hix | director | 2160 SATELLITE BLVD., SUITE 200, DULUTH GA 30097 |
Didier P Teirlinck | director | INGERSOLL-RAND COMPANY, 155 CHESTNUT RIDGE ROAD, MONTVALE NJ 07645 |
Olivier Biebuyck | officer: President, EMEA | 909 ROSE AVENUE, SUITE 800, NORTH BETHESDA MD 20852 |
Michele Campion | officer: Chief Human Resources Officer | 909 ROSE AVENUE, SUITE 800, NORTH BETHESDA MD 20852 |
Patrick W Allender | director | DANAHER CORP, 2099 PENNSYLVANIA AVE NW 12TH FL, WASHINGTON DC 20006 |
John P Dion | officer: SVP, ESAB Business Excellence | 909 ROSE AVE., 8TH FLOOR, NORTH BETHESDA MD 20852 |
Eleanor Lukens | officer: President, Americas | 909 ROSE AVE., 8TH FLOOR, NORTH BETHESDA MD 20852 |
Mitchell P Rales | director | 11790 GLEN ROAD, POTOMAC MD 20854 |
Curtis E Jewell | officer: SVP, General Counsel | 909 ROSE AVENUE, SUITE 800, NORTH BETHESDA MD 20852 |
Melissa Cummings | director | 909 ROSE AVENUE, SUITE 800, NORTH BETHESDA MD 20852 |
Stephanie M Phillipps | director | C/O THE PNC FINANCIAL SERVICES GROUP, 340 MADISON AVENUE, NEW YORK NY 10173 |
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