Erayak Power Solution Group (Erayak Power Solution Group) EBIT : $1.90 Mil (TTM As of Dec. 2023)

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What is Erayak Power Solution Group EBIT?

Erayak Power Solution Group's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2023 was $1.10 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $1.90 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Erayak Power Solution Group's annualized ROC % for the quarter that ended in Dec. 2023 was 9.36%. Erayak Power Solution Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 13.85%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Erayak Power Solution Group's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 7.38%.

Erayak Power Solution Group EBIT Historical Data

The historical data trend for Erayak Power Solution 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.

* Premium members only.

Erayak Power Solution Group EBIT Chart

Erayak Power Solution Group Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

1.16

2.86

4.15

4.41

1.90

Erayak Power Solution Group Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
EBIT	Get a 7-Day Free Trial				2.48	2.73	1.68	0.81	1.10

Competitive Comparison of Erayak Power Solution Group's EBIT

For the Electrical Equipment & Parts subindustry, Erayak Power Solution 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.

Erayak Power Solution Group's EV-to-EBIT Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Erayak Power Solution Group's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Erayak Power Solution Group's EV-to-EBIT falls into.

Erayak Power Solution 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. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was $1.90 Mil.

Erayak Power Solution Group (NAS:RAYA) EBIT Explanation

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

Erayak Power Solution Group's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	2.15 * ( 1 - 11.97% )	/	( (23.589	+	16.85)	/ 2 )
=	1.892645	/	20.2195
=	9.36 %

where

	Invested Capital		(Q: Jun. 2023 )
=	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	))
=	34.76	-	5.398	-	( 5.773	-	max(0, 15.157	-	22.092	+	5.773	))
=	23.589

	Invested Capital		(Q: Dec. 2023 )
=	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	))
=	35.285	-	12.558	-	( 5.877	-	max(0, 13.212	-	22.098	+	5.877	))
=	16.85

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

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

Erayak Power Solution Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	2.194	/	( ( (8.851 + max(10.424, 0))	+	(9.263 + max(3.142, 0)) )	/	2 )
=	2.194	/	( ( 19.275	+	12.405 )	/	2 )
=	2.194	/	15.84
=	13.85 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(5.91	+	6.851	+	3.426)	-	(5.398	+	0.365	+	0)
=	10.424

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(6.253	+	7.056	+	2.749)	-	(12.558	+	0.357	+	0.0010000000000012)
=	3.142

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

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

Erayak Power Solution Group's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	1.903	/	25.771
	=	7.38 %

Erayak Power Solution Group EBIT Related Terms

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Erayak Power Solution Group (Erayak Power Solution Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Erayak Power Solution Group Inc (NAS:RAYA) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 528, 4th Avenue, Binhai Industrial Park, Zhejiang Province, Wenzhou, CHN, 325025

Website

https://www.erayakpower.com

Erayak Power Solution Group Inc engages in manufacturing, research and development, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery, and smart chargers, and custom-designed products. It derives the majority revenue from three products namely inverters, chargers, and gasoline generators.