Alternative Energy (LSE:ALR) EBIT: £-9.70 Mil (TTM As of Jun. 2014)


What is Alternative Energy EBIT?

Alternative Energy LSE:ALR EBIT is £-9.70 Mil as of Jun. 2014. The stock has 4 warning signs investors should review.

Alternative Energy's earnings before interest and taxes (EBIT) for the six months ended in Jun. 2014 was £-0.81 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2014 was £-9.70 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Alternative Energy's annualized ROC % for the quarter that ended in Jun. 2014 was -13.10%. Alternative Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2014 was %.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Alternative Energy's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2014 was -92.21%.

Alternative Energy  (LSE:ALR) EBIT Explanation

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

Alternative Energy's annualized ROC % for the quarter that ended in Jun. 2014 is calculated as:

ROC % (Q: Jun. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2013 ) + Invested Capital (Q: Jun. 2014 ))/ count )
=-1.616 * ( 1 - 0% )/( (12.719 + 11.946)/ 2 )
=-1.616/12.3325
=-13.10 %

where

Invested Capital(Q: Dec. 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))
=11.5 - 3.463 - ( 0.049 - max(0, 6.018 - 1.336+0.049))
=12.719

Invested Capital(Q: Jun. 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))
=10.727 - 3.485 - ( 0.047 - max(0, 6.007 - 1.303+0.047))
=11.946

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

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

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

ROC (Joel Greenblatt) %(Q: Jun. 2014 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2013  Q: Jun. 2014
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-1.616/( ( (0 + max(-2.348, 0)) + (0 + max(-2.419, 0)) )/ 2 )
=-1.616/( ( 0 + 0 )/ 2 )
=-1.616/0
= %

where Working Capital is:

Working Capital(Q: Dec. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(-0.099 + 0 + 1.386) - (3.463 + 0 + 0.172)
=-2.348

Working Capital(Q: Jun. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(-0.058 + 0 + 1.314) - (3.485 + 0 + 0.19)
=-2.419

When net working capital is negative, 0 is used.

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

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Jun. 2014 )
=-9.699/10.518
=-92.21 %

* 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.

Alternative Energy EBIT Related Terms

Alternative Energy EBIT Historical Data

* Premium members only.

The historical data trend for Alternative Energy'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.

Alternative Energy EBIT Chart

Alternative Energy Annual Data
Trend Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Dec13
EBIT
Get a 7-Day Free Trial -1.56 -2.30 -2.45 -1.73 -9.54

Alternative Energy Semi-Annual Data
Feb10 Aug10 Feb11 Aug11 Feb12 Aug12 Jun13 Dec13 Jun14
EBIT Get a 7-Day Free Trial Premium Member Only -0.93 -0.81 -0.69 -8.89 -0.81

Alternative Energy EBIT Competitor Comparison

For the Utilities - Independent Power Producers subindustry, Alternative Energy'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.

Alternative Energy EV-to-EBIT vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Alternative Energy's EV-to-EBIT distribution charts can be found below:

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


Alternative Energy 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 Jun. 2014 adds up the semi-annually data reported by the company within the most recent 12 months, which was £-9.70 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 £-9.70 Mil mean?
Alternative Energy (LSE:ALR) has a EBIT of £-9.70 Mil as of Jun. 2014. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Alternative Energy.
Is Alternative Energy's EBIT too high?
Alternative Energy's current EBIT is £-9.70 Mil.
How does Alternative Energy's EBIT compare to competitors?
Alternative Energy's EBIT of £-9.70 Mil can be compared against companies in the Utilities - Independent Power Producers 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 Utilities - Independent Power Producers company?
A good EBIT depends on the Utilities - Independent Power Producers 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 Alternative Energy. Alternative Energy's current EBIT is £-9.70 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alternative Energy stock overvalued right now?
Alternative Energy (LSE:ALR) has a current EBIT of £-9.70 Mil. The current EBIT is £-9.70 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 Alternative Energy (LSE:ALR), the current EBIT is £-9.70 Mil as of Jun. 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.

Alternative Energy Business Description

Alternative Energy Ltd provides technology, hardware and equipment for renewable energy and green energy solutions. Its solutions include Renewable Energy, The E-Roof - The PC of Energy, and AEL Energy Saving products such as eLIVE and eLUMEN. It also makes acquisitions to develop energy technologies, business and companies which offer an alternative to conventional fossil fuel and nuclear methods of generating household and industrial energy, as well as providing management services to its subsidiaries.