Management Consulting Group (LSE:MMC) EBIT: £-5.55 Mil (TTM As of Dec. 2019)


What is Management Consulting Group EBIT?

Management Consulting Group LSE:MMC -30.09% EBIT is £-5.55 Mil as of Dec. 2019. The stock has 3 warning signs investors should review.

Management Consulting Group's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2019 was £-3.59 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2019 was £-5.55 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Management Consulting Group's annualized ROC % for the quarter that ended in Dec. 2019 was -108.31%. Management Consulting Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 was -429.05%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Management Consulting Group's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2019 was 85.86%.

Management Consulting Group  (LSE:MMC) EBIT Explanation

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

Management Consulting Group's annualized ROC % for the quarter that ended in Dec. 2019 is calculated as:

ROC % (Q: Dec. 2019 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2019 ) + Invested Capital (Q: Dec. 2019 ))/ count )
=-5.398 * ( 1 - 0% )/( (3.403 + 6.565)/ 2 )
=-5.398/4.984
=-108.31 %

where

Invested Capital(Q: Jun. 2019 )
=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))
=23.6 - 10.214 - ( 14.423 - max(0, 11.02 - 21.003+14.423))
=3.403

Invested Capital(Q: Dec. 2019 )
=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))
=19.321 - 4.2 - ( 11.667 - max(0, 9.453 - 18.009+11.667))
=6.565

Note: The Operating Income data used here is two times the semi-annual (Dec. 2019) data.

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

Management Consulting Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2019 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2019  Q: Dec. 2019
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-7.178/( ( (2.049 + max(-3.634, 0)) + (1.297 + max(-2.361, 0)) )/ 2 )
=-7.178/( ( 2.049 + 1.297 )/ 2 )
=-7.178/1.673
=-429.05 %

where Working Capital is:

Working Capital(Q: Jun. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(6.551 + 0 + 0.029) - (10.214 + 0 + 0)
=-3.634

Working Capital(Q: Dec. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.772 + 0 + 3.57) - (4.2 + 0 + 4.503)
=-2.361

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2019) EBIT data.

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

Management Consulting Group's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2019 )
=-5.55/-6.464
=85.86 %

* 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.

Management Consulting Group EBIT Related Terms

Management Consulting Group EBIT Historical Data

* Premium members only.

The historical data trend for Management Consulting Group'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.

Management Consulting Group EBIT Chart

Management Consulting Group Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only -7.23 -40.30 -25.23 -6.91 -5.55

Management Consulting Group Semi-Annual Data
Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19
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 -20.80 -4.43 -2.48 -1.96 -3.59

LSE:MMC vs INFO, VRSK, EFX: EBIT Comparison

For the Consulting Services subindustry, Management Consulting Group'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.

Management Consulting Group EV-to-EBIT vs Business Services Industry

For the Business Services industry and Industrials sector, Management Consulting Group's EV-to-EBIT distribution charts can be found below:

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


Management Consulting Group 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. 2019 adds up the semi-annually data reported by the company within the most recent 12 months, which was £-5.55 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 £-5.55 Mil mean?
Management Consulting Group (LSE:MMC) has a EBIT of £-5.55 Mil as of Dec. 2019. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Management Consulting Group.
Is Management Consulting Group's EBIT too high?
Management Consulting Group's current EBIT is £-5.55 Mil.
How does Management Consulting Group's EBIT compare to INFO and VRSK?
Management Consulting Group's EBIT of £-5.55 Mil can be compared against companies in the Business Services 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 Business Services company?
A good EBIT depends on the Business Services 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 Management Consulting Group. Management Consulting Group's current EBIT is £-5.55 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Management Consulting Group stock overvalued right now?
Based on GuruFocus' analysis, Management Consulting Group (LSE:MMC) is currently considered Possible Value Trap. The current EBIT is £-5.55 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 Management Consulting Group (LSE:MMC), the current EBIT is £-5.55 Mil as of Dec. 2019. 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.

Management Consulting Group Business Description

Address 10 Warwick Lane, St. Paul’s House, 4th Floor, London, GBR, EC4M 7BP
Management Consulting Group PLC is engaged in providing professional services to various industries and sectors via the Proudfoot practice. Proudfoot, which is a professional service practice designs, implements and accelerates the operational transformation that realizes tomorrow's results today. The company serves various industries including manufacturing, natural resources, consumer packaged goods, transportation, automotive, building materials and heavy industry. It also provides market-specific local customization for Financial Services and Healthcare sectors. The company provides its services in the Americas, Europe among other regions, and generates a vast majority of its revenue from Europe.