Allocate Software (LSE:ALLA) EBIT: £2.92 Mil (TTM As of May. 2014)


What is Allocate Software EBIT?

Allocate Software LSE:ALLA EBIT is £2.92 Mil as of May. 2014. The stock has 1 warning sign investors should review.

Allocate Software's earnings before interest and taxes (EBIT) for the six months ended in May. 2014 was £4.72 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2014 was £2.92 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Allocate Software's annualized ROC % for the quarter that ended in May. 2014 was 37.61%. Allocate Software's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2014 was 586.40%.

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

Allocate Software  (LSE:ALLA) EBIT Explanation

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

Allocate Software'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: Nov. 2013 ) + Invested Capital (Q: May. 2014 ))/ count )
=9.616 * ( 1 - 9.22% )/( (15.352 + 31.074)/ 2 )
=8.7294048/23.213
=37.61 %

where

Invested Capital(Q: Nov. 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))
=33.633 - 16.045 - ( 7.449 - max(0, 16.045 - 18.281+7.449))
=15.352

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))
=42.508 - 3.99 - ( 13.659 - max(0, 20.471 - 27.915+13.659))
=31.074

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

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

Allocate Software'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: Nov. 2013  Q: May. 2014
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=9.444/( ( (1.649 + max(-5.213, 0)) + (1.572 + max(-6.215, 0)) )/ 2 )
=9.444/( ( 1.649 + 1.572 )/ 2 )
=9.444/1.6105
=586.40 %

where Working Capital is:

Working Capital(Q: Nov. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(10.739 + 0 + 0.092999999999996) - (16.045 + 0 + 0)
=-5.213

Working Capital(Q: May. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(9.701 + 0 + 4.555) - (3.99 + 0 + 16.481)
=-6.215

When net working capital is negative, 0 is used.

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

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: May. 2014 )
=2.915/0.000
= %

* 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.

Allocate Software EBIT Related Terms

Allocate Software EBIT Historical Data

* Premium members only.

The historical data trend for Allocate Software'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.

Allocate Software EBIT Chart

Allocate Software Annual Data
Trend May05 May06 May07 May08 May09 May10 May11 May12 May13 May14
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.34 0.78 -4.36 -2.27 2.92

Allocate Software Semi-Annual Data
Nov04 May05 Nov05 May06 Nov06 May07 Nov07 May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14
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 2.27 -2.49 0.22 -1.81 4.72

LSE:ALLA vs SREV, ASUR: EBIT Comparison

For the Software - Application subindustry, Allocate Software'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.

Allocate Software EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Allocate Software's EV-to-EBIT distribution charts can be found below:

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


Allocate Software 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 May. 2014 adds up the semi-annually data reported by the company within the most recent 12 months, which was £2.92 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 £2.92 Mil mean?
Allocate Software (LSE:ALLA) has a EBIT of £2.92 Mil as of May. 2014. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Allocate Software.
Is Allocate Software's EBIT too high?
Allocate Software's current EBIT is £2.92 Mil.
How does Allocate Software's EBIT compare to SREV and ASUR?
Allocate Software's EBIT of £2.92 Mil can be compared against companies in the Software 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 Software company?
A good EBIT depends on the Software 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 Allocate Software. Allocate Software's current EBIT is £2.92 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allocate Software stock overvalued right now?
Allocate Software (LSE:ALLA) has a current EBIT of £2.92 Mil. The current EBIT is £2.92 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 Allocate Software (LSE:ALLA), the current EBIT is £2.92 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.

Allocate Software Business Description

Allocate Software PLC is engaged in the development, sale and support of workforce management solutions, and the provision of related IT services to major healthcare, defence, government and commercial customers. The business of the company is focused principally on the Healthcare market in addition to Defence. Its segments are Licence, Subscriptions, Support, and Services. Licence and Subscriptions segments represent the sale of non-cancellable software licence agreements and subscriptions associated with that software. Support and Services segments represent the provision of installation, consulting, training and product support. It operates in UK, Europe, USA and Australia.