RNBI (Rainbow International) EBIT: $-0.09 Mil (TTM As of Feb. 2014)

What is Rainbow International EBIT?

Rainbow International RNBI EBIT is $-0.09 Mil as of Feb. 2014.

Rainbow International's earnings before interest and taxes (EBIT) for the three months ended in Feb. 2014 was $-0.00 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2014 was $-0.09 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Rainbow International's annualized ROC % for the quarter that ended in Feb. 2014 was -53.33%. Rainbow International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2014 was %.

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

Rainbow International (OTCPK:RNBI) EBIT Explanation

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

Rainbow International's annualized ROC % for the quarter that ended in Feb. 2014 is calculated as:

	ROC % (Q: Feb. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2013 )	+	Invested Capital (Q: Feb. 2014 ))	/ count )
=	-0.016 * ( 1 - 0% )	/	( (0.03	+	0.03)	/ 2 )
=	-0.016	/	0.03
=	-53.33 %

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	))
=	0.03	-	0.078	-	( 0	-	max(0, 0.078	-	0	+	0	))
=	0.03

	Invested Capital		(Q: Feb. 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	))
=	0.03	-	0.082	-	( 0	-	max(0, 0.082	-	0	+	0	))
=	0.03

Note: The Operating Income data used here is four times the quarterly (Feb. 2014) data.

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

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

	ROC (Joel Greenblatt) %		(Q: Feb. 2014 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Nov. 2013		Q: Feb. 2014
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-0.016	/	( ( (0 + max(-0.078, 0))	+	(0 + max(-0.082, 0)) )	/	2 )
=	-0.016	/	( ( 0	+	0 )	/	2 )
=	-0.016	/	0
=	%

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)
=	(0	+	0	+	0)	-	(0.078	+	0	+	0)
=	-0.078

	Working Capital		(Q: Feb. 2014 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0)	-	(0.082	+	0	+	0)
=	-0.082

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Feb. 2014) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Feb. 2014 )
	=	-0.094	/	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.

Rainbow International EBIT Related Terms

Rainbow International EBIT Historical Data

* Premium members only.

The historical data trend for Rainbow International's EBIT can be seen below:

Rainbow International EBIT Chart

Rainbow International Annual Data

Trend

May11

May12

May13

EBIT

0.00

-0.05

-0.24

Rainbow International Quarterly Data
	May11	Aug11	Nov11	Feb12	May12	Aug12	Nov12	Feb13	May13	Aug13	Nov13	Feb14
EBIT	Get a 7-Day Free Trial							-0.05	-0.04	-0.05	-0.00	-0.00

Rainbow International EBIT Competitor Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Rainbow International'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.

Rainbow International EV-to-EBIT vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Rainbow International's EV-to-EBIT distribution charts can be found below:

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

Save Embed

Rainbow International 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 Feb. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.09 Mil.

Frequently Asked Questions Learn more about EBIT →

What does a EBIT of $-0.09 Mil mean?

Rainbow International (RNBI) has a EBIT of $-0.09 Mil as of Feb. 2014. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Rainbow International.

Is Rainbow International's EBIT too high?

Rainbow International's current EBIT is $-0.09 Mil.

How does Rainbow International's EBIT compare to competitors?

Rainbow International's EBIT of $-0.09 Mil can be compared against companies in the Drug Manufacturers 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 Drug Manufacturers company?

A good EBIT depends on the Drug Manufacturers 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 Rainbow International. Rainbow International's current EBIT is $-0.09 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Rainbow International stock overvalued right now?

Rainbow International (RNBI) has a current EBIT of $-0.09 Mil. The current EBIT is $-0.09 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 Rainbow International (RNBI), the current EBIT is $-0.09 Mil as of Feb. 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.

Rainbow International Business Description

Industry Healthcare Drug Manufacturers

Comparable Companies IST:GENTS IST:PRKME

Address 17422 East Progress Drive, Suite 107, Centennial, CO, USA

Website http://www.rainbowinternationalcorporation.com

Rainbow International Corp is a United States based company engaged in the commercial production of hemp, by growing hemp in greenhouses and on acreage, then formulate, package and distribute its own line of hemp-based products.