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Constellation Software (STU:W9C) EBIT : €757 Mil (TTM As of Sep. 2024)


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What is Constellation Software EBIT?

Constellation Software's earnings before interest and taxes (EBIT) for the three months ended in Sep. 2024 was €304 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2024 was €757 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Constellation Software's annualized ROC % for the quarter that ended in Sep. 2024 was 10.52%. Constellation Software's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 248.64%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Constellation Software's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 1.11%.


Constellation Software EBIT Historical Data

The historical data trend for Constellation 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.

* Premium members only.

Constellation Software EBIT Chart

Constellation Software Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 444.60 529.37 377.90 767.47 392.48

Constellation Software Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 306.40 -4.59 168.36 289.85 303.64

Competitive Comparison of Constellation Software's EBIT

For the Software - Application subindustry, Constellation 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.


Constellation Software's EV-to-EBIT Distribution in the Software Industry

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

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



Constellation 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 Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €757 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.


Constellation Software  (STU:W9C) EBIT Explanation

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

Constellation Software's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=1520.888 * ( 1 - 30.74% )/( (10067.573 + 9965.961)/ 2 )
=1053.3670288/10016.767
=10.52 %

where

Invested Capital(Q: Jun. 2024 )
=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))
=11255.764 - 1588.59 - ( 1752.094 - max(0, 4206.512 - 3806.113+1752.094))
=10067.573

Invested Capital(Q: Sep. 2024 )
=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))
=11328.273 - 1660.543 - ( 1878.585 - max(0, 4224.789 - 3926.558+1878.585))
=9965.961

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

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

Constellation Software's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1214.548/( ( (487.725 + max(-2131.126, 0)) + (489.243 + max(-2091.221, 0)) )/ 2 )
=1214.548/( ( 487.725 + 489.243 )/ 2 )
=1214.548/488.484
=248.64 %

where Working Capital is:

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1037.693 + 55.74 + 304.712) - (1588.59 + 1931.391 + 9.29)
=-2131.126

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1037.952 + 59.466 + 296.429) - (1660.543 + 1814.614 + 9.9109999999991)
=-2091.221

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Sep. 2024 )
=757.26/68224.977
=1.11 %

* 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.


Constellation Software EBIT Related Terms

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Constellation Software Business Description

Traded in Other Exchanges
Address
20 Adelaide Street East, Suite 1200, Toronto, ON, CAN, M5C 2T6
Constellation Software is a conglomerate that acquires, manages, and grows mission-critical vertical market software businesses. As of 2023, we estimate Constellation operates over 1,000 distinct software businesses in over 150 vertical markets globally, with no one business contributing materially to group earnings. The firm operates a highly decentralized model, where portfolio company management holds autonomy and accountability over operating decisions, and where small centralized teams provide financial and strategic guidance.

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