FRMO (FRMO) EBIT: $5.92 Mil (TTM As of May. 2014)


FRMO FRMO Corp FRMO
12 GF Score
Price $6.67
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What is FRMO EBIT?

FRMO FRMO +4.06% 12 EBIT is $5.92 Mil as of May. 2014. GuruFocus rates FRMO with a GF Score™ of 12/100.

FRMO's earnings before interest and taxes (EBIT) for the six months ended in May. 2014 was $5.92 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2014 was $5.92 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. FRMO's annualized ROC % for the quarter that ended in May. 2014 was 10.69%. FRMO's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2014 was %.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. FRMO's Earnings Yield (Joel Greenblatt) % for the quarter that ended in May. 2014 was 2.01%.

FRMO  (OTCPK:FRMO) EBIT Explanation

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

FRMO's annualized ROC % for the quarter that ended in May. 2014 is calculated as:

ROC % (Q: May. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: May. 2013 ) + Invested Capital (Q: May. 2014 ))/ count )
=5.916 * ( 1 - 42% )/( (29.552 + 34.649)/ 2 )
=3.43128/32.1005
=10.69 %

where

Invested Capital(Q: May. 2013 )
=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))
=96.017 - 0.172 - ( 73.831 - max(0, 8.412 - 74.705+73.831))
=29.552

Invested Capital(Q: May. 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))
=110.445 - 1.43 - ( 85.927 - max(0, 12.156 - 86.522+85.927))
=34.649

Note: The Operating Income data used here is one times the annual (May. 2014) data.

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

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

ROC (Joel Greenblatt) %(Q: May. 2014 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: May. 2013  Q: May. 2014
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=5.916/( ( (0 + max(-7.538, 0)) + (0 + max(-11.561, 0)) )/ 2 )
=5.916/( ( 0 + 0 )/ 2 )
=5.916/0
= %

where Working Capital is:

Working Capital(Q: May. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.476 + 0 + 0.398) - (0.172 + 5.852 + 2.388)
=-7.538

Working Capital(Q: May. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.595 + 0 + 0) - (1.43 + 9.016 + 1.71)
=-11.561

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (May. 2014) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: May. 2014 )
=5.916/293.632
=2.01 %

* 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.

FRMO EBIT Related Terms

FRMO EBIT Historical Data

* Premium members only.

The historical data trend for FRMO'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.

FRMO EBIT Chart

FRMO Annual Data
Trend Feb00 Feb01 Feb02 Feb03 Feb04 May12 May13 May14
EBIT
Get a 7-Day Free Trial 0.05 0.10 3.50 14.38 5.92

FRMO Semi-Annual Data
Feb00 Feb01 Feb02 Feb03 Feb04 May12 May13 May14
EBIT Get a 7-Day Free Trial 0.05 0.10 3.50 14.38 5.92

FRMO vs KTF, ZTR, PFL: EBIT Comparison

For the Asset Management subindustry, FRMO'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.

FRMO EV-to-EBIT vs Asset Management Industry

For the Asset Management industry and Financial Services sector, FRMO's EV-to-EBIT distribution charts can be found below:

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


FRMO
12GF Score
FRMO Corp FRMO
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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FRMO 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.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. EBIT for the trailing twelve months (TTM) ended in May. 2014 was $5.92 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 $5.92 Mil mean?
FRMO (FRMO) has a EBIT of $5.92 Mil as of May. 2014. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on FRMO.
Is FRMO's EBIT too high?
FRMO's current EBIT is $5.92 Mil. Overall, FRMO has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does FRMO's EBIT compare to KTF and ZTR?
FRMO's EBIT of $5.92 Mil can be compared against companies in the Asset Management 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 Asset Management company?
A good EBIT depends on the Asset Management 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 FRMO. FRMO's current EBIT is $5.92 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FRMO stock overvalued right now?
FRMO (FRMO) has a current EBIT of $5.92 Mil. The current EBIT is $5.92 Mil. FRMO's overall GF Score™ is 12/100. 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 FRMO (FRMO), the current EBIT is $5.92 Mil as of May. 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.

FRMO Business Description

Address 1 North Lexington Avenue, Suite 12C, White Plains, NY, USA, 10601
FRMO Corp is an intellectual capital firm identifying and managing investment strategies and business opportunities.
12GF Score

Get the complete analysis for FRMO

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

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