Li Ning Co (FRA:LNL) EBIT: €522 Mil (TTM As of Dec. 2025)


FRA:LNL Li Ning Co Ltd FRA:LNL
98 GF Score
Price €38.80
GF Value €54.13
! 3 Warning Signs
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What is Li Ning Co EBIT?

Li Ning Co FRA:LNL -2.02% 98 EBIT is €522 Mil as of Dec. 2025. GuruFocus rates FRA:LNL with a GF Score™ of 98/100 and a GF Value™ of €54.13. The stock has 3 warning signs investors should review.

Li Ning Co's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was €198 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was €522 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Li Ning Co's annualized ROC % for the quarter that ended in Dec. 2025 was 12.82%. Li Ning Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 53.19%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Li Ning Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 25.60%.


Li Ning Co  (FRA:LNL) EBIT Explanation

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

Li Ning Co's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=363.316 * ( 1 - 24.29% )/( (2117.641 + 2172.044)/ 2 )
=275.0665436/2144.8425
=12.82 %

where

Invested Capital(Q: Jun. 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))
=4441.061 - 578.427 - ( 2059.002 - max(0, 928.669 - 2673.662+2059.002))
=2117.641

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))
=4572.895 - 595.59 - ( 2159.387 - max(0, 977.42 - 2782.681+2159.387))
=2172.044

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

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

Li Ning Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=396.812/( ( (725.372 + max(-284.473, 0)) + (766.757 + max(-311.199, 0)) )/ 2 )
=396.812/( ( 725.372 + 766.757 )/ 2 )
=396.812/746.0645
=53.19 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(163.277 + 293.205 + 128.526) - (578.427 + 0 + 291.054)
=-284.473

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(168.38 + 326.627 + 99.724) - (595.59 + 0 + 310.34)
=-311.199

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

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

Li Ning Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2025 )
=522.216/2039.906
=25.60 %

* 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.


Li Ning Co EBIT Related Terms


Li Ning Co EBIT Historical Data

* Premium members only.

The historical data trend for Li Ning Co'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.

Li Ning Co EBIT Chart

Li Ning Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 749.30 747.10 567.22 559.58 523.57

Li Ning Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 198.36 345.01 206.18 323.81 198.41

FRA:LNL vs AS, HAS, LTH: EBIT Comparison

For the Leisure subindustry, Li Ning Co'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.


Li Ning Co EV-to-EBIT vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Li Ning Co's EV-to-EBIT distribution charts can be found below:

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


FRA:LNL
98GF Score
Li Ning Co Ltd FRA:LNL
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Li Ning Co 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 Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was €522 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 €522 Mil mean?
Li Ning Co (FRA:LNL) has a EBIT of €522 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Li Ning Co.
Is Li Ning Co's EBIT too high?
Li Ning Co's current EBIT is €522 Mil. Overall, Li Ning Co has a GF Score™ of 98/100, reflecting its overall financial health beyond just this single metric.
How does Li Ning Co's EBIT compare to AS and HAS?
Li Ning Co's EBIT of €522 Mil can be compared against companies in the Travel & Leisure 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 Travel & Leisure company?
A good EBIT depends on the Travel & Leisure 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 Li Ning Co. Li Ning Co's current EBIT is €522 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Li Ning Co stock overvalued right now?
Li Ning Co (FRA:LNL) has a current EBIT of €522 Mil. The stock's GF Value™ is €54.13, compared to a current price of €38.80 — trading 28.3% below its estimated fair value. The current EBIT is €522 Mil. Li Ning Co's overall GF Score™ is 98/100 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 Li Ning Co (FRA:LNL), the current EBIT is €522 Mil as of Dec. 2025. 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.

Is Li Ning Co (FRA:LNL) Overvalued in 2026?

Based on GuruFocus' analysis, Li Ning Co stock appears to be undervalued. The current stock price of €38.80 is trading 28.3% below its estimated GF Value™ of €54.13.

Key valuation signals for FRA:LNL:

  • EBIT: €522 Mil
  • GF Value™: €54.13 vs. price of €38.80 (28.3% below fair value)
  • GF Score™: 98/100 with 3 warning signs

No single metric tells the full story. See the FRA:LNL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Li Ning Co Business Description

Address No. 8 Xing Guang 5th Street, Beijing Economic-Technological Development Area, Tongzhou District, Beijing, CHN, 101111
Established in 1989, Li Ning is one of the largest sportswear companies in China. Headquartered in Beijing, Li Ning mainly sells professional and leisure footwear and apparel under the Li Ning brand. Despite having a single-brand strategy, Li Ning launched multiple sub-brands (such as China Li Ning and Li Ning 1990) to appeal to different demographics. As of the end of 2024, the company had 7,585 stores in China, of which 1,297 were directly operated, and the rest franchised.
98GF Score

Get the complete analysis for FRA:LNL

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

€38.80
Price
€54.13
GF Value