McGraw Hill (FRA:1LI) EBIT: €271 Mil (TTM As of Mar. 2026)


FRA:1LI McGraw Hill Inc FRA:1LI
31 GF Score
Price €7.75
! 3 Warning Signs
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What is McGraw Hill EBIT?

McGraw Hill FRA:1LI -6.06% 31 EBIT is €271 Mil as of Mar. 2026. GuruFocus rates FRA:1LI with a GF Score™ of 31/100. The stock has 3 warning signs investors should review.

McGraw Hill's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €28 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €271 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. McGraw Hill's annualized ROC % for the quarter that ended in Mar. 2026 was 2.25%. McGraw Hill's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 96.08%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. McGraw Hill's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 7.32%.

McGraw Hill  (FRA:1LI) EBIT Explanation

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

McGraw Hill's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=112.928 * ( 1 - 4.68% )/( (4757.899 + 4794.655)/ 2 )
=107.6429696/4776.277
=2.25 %

where

Invested Capital(Q: Dec. 2025 )
=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))
=4820.016 - 244.159 - ( 439.291 - max(0, 1094.889 - 912.847+439.291))
=4757.899

Invested Capital(Q: Mar. 2026 )
=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))
=4744.976 - 203.68 - ( 219.294 - max(0, 1095.565 - 842.206+219.294))
=4794.655

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

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

McGraw Hill's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=112.928/( ( (118.075 + max(-598.137, 0)) + (116.997 + max(-448.686, 0)) )/ 2 )
=112.928/( ( 118.075 + 116.997 )/ 2 )
=112.928/117.536
=96.08 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(206.951 + 144.896 + 121.709) - (244.159 + 694.433 + 133.101)
=-598.137

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(313.548 + 168.694 + 140.67) - (203.68 + 722.584 + 145.334)
=-448.686

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=270.973/3703.305
=7.32 %

* 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.

McGraw Hill EBIT Related Terms

McGraw Hill EBIT Historical Data

* Premium members only.

The historical data trend for McGraw Hill'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.

McGraw Hill EBIT Chart

McGraw Hill Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EBIT
Get a 7-Day Free Trial 50.64 115.66 188.41 283.80 273.15

McGraw Hill Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 25.69 83.43 133.36 25.96 28.23

FRA:1LI vs UTI, PRDO, STRA: EBIT Comparison

For the Education & Training Services subindustry, McGraw Hill'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.

McGraw Hill EV-to-EBIT vs Education Industry

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

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


FRA:1LI
31GF Score
McGraw Hill Inc FRA:1LI
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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McGraw Hill 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 Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €271 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 €271 Mil mean?
McGraw Hill (FRA:1LI) has a EBIT of €271 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on McGraw Hill.
Is McGraw Hill's EBIT too high?
McGraw Hill's current EBIT is €271 Mil. Overall, McGraw Hill has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does McGraw Hill's EBIT compare to UTI and PRDO?
McGraw Hill's EBIT of €271 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 McGraw Hill. McGraw Hill's current EBIT is €271 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McGraw Hill stock overvalued right now?
McGraw Hill (FRA:1LI) has a current EBIT of €271 Mil. The current EBIT is €271 Mil. McGraw Hill's overall GF Score™ is 31/100 with 3 warning signs to review. 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 McGraw Hill (FRA:1LI), the current EBIT is €271 Mil as of Mar. 2026. 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.

McGraw Hill Business Description

Other Exchanges MH:USA
Address 8787 Orion Place, Columbus, OH, USA, 43240
McGraw Hill Inc is a provider of education solutions for K-12, higher education and professional learning markets. It is helping shape the education industry by providing access to effective learning experiences that improve outcomes and opportunities for all. It operates at the intersection of proprietary content, software and data, using artificial intelligence to deliver personalized learning experiences, driving positive outcomes throughout the entire learning lifecycle. The company has four reportable segments K-12, Higher Education, Global Professional, International. It generates majority of revenue from K-12 which provides end-to-end core, supplemental and intervention curricula to support the needs of U.S. K-12 schools. It generates majority of revenue from United States.
31GF Score

Get the complete analysis for FRA:1LI

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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