Reach Machinery Co (SZSE:301596) EBIT: ¥120.0 Mil (TTM As of Jun. 2026)

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SZSE:301596 Reach Machinery Co Ltd SZSE:301596
39 GF Score
Price ¥46.71
! 2 Warning Signs
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What is Reach Machinery Co EBIT?

Reach Machinery Co SZSE:301596 -0.28% 39 EBIT is ¥120.0 Mil as of Jun. 2026. GuruFocus rates SZSE:301596 with a GF Score™ of 39/100. The stock has 2 warning signs investors should review.

Reach Machinery Co's earnings before interest and taxes (EBIT) for the three months ended in Jun. 2026 was ¥31.1 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2026 was ¥120.0 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Reach Machinery Co's annualized ROC % for the quarter that ended in Jun. 2026 was 16.43%. Reach Machinery Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 23.48%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Reach Machinery Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 2.57%.


Reach Machinery Co  (SZSE:301596) EBIT Explanation

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

Reach Machinery Co's annualized ROC % for the quarter that ended in Jun. 2026 is calculated as:

ROC % (Q: Jun. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2026 ) + Invested Capital (Q: Jun. 2026 ))/ count )
=115.94427652 * ( 1 - 9.995% )/( (624.77875609 + 645.32838237)/ 2 )
=104.35564608183/635.05356923
=16.43 %

where

Invested Capital(Q: Mar. 2026 )
=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))
=1188.77268384 - 99.89635257 - ( 464.09757518 - max(0, 236.74736609 - 904.55987067+464.09757518))
=624.77875609

Invested Capital(Q: Jun. 2026 )
=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))
=1251.3425189 - 135.50042405 - ( 470.51371248 - max(0, 285.19467879 - 949.97535637+470.51371248))
=645.32838237

Note: The Operating Income data used here is four times the quarterly (Jun. 2026) data.

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

Reach Machinery Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2026  Q: Jun. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=124.53562732/( ( (246.21592063 + max(259.6740494, 0)) + (259.31009845 + max(295.59912866, 0)) )/ 2 )
=124.53562732/( ( 505.88997003 + 554.90922711 )/ 2 )
=124.53562732/530.39959857
=23.48 %

where Working Capital is:

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(262.54564584 + 170.49527364 + 5.74198066) - (99.89635257 + 3.46220492 + 75.75029325)
=259.6740494

Working Capital(Q: Jun. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(287.671365 + 184.50667928 + 6.02589512) - (135.50042405 + 4.30545046 + 42.79893623)
=295.59912866

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2026) EBIT data.

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

Reach Machinery Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Jun. 2026 )
=119.96447598/4661.522
=2.57 %

* 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.


Reach Machinery Co EBIT Related Terms


Reach Machinery Co EBIT Historical Data

* Premium members only.

The historical data trend for Reach Machinery Co'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.

Reach Machinery Co EBIT Chart

Reach Machinery Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial 83.91 94.80 117.09 119.32 125.02

Reach Machinery Co Quarterly Data
Sep23 Dec23 Mar24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 32.55 34.49 30.09 24.25 31.13

SZSE:301596 vs ORLY, AZO, GPC: EBIT Comparison

For the Auto Parts subindustry, Reach Machinery Co'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.


Reach Machinery Co EV-to-EBIT vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Reach Machinery Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Reach Machinery Co's EV-to-EBIT falls into.


SZSE:301596
39GF Score
Reach Machinery Co Ltd SZSE:301596
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Reach Machinery Co 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. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥120.0 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 ¥120.0 Mil mean?
Reach Machinery Co (SZSE:301596) has a EBIT of ¥120.0 Mil as of Jun. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Reach Machinery Co.
Is Reach Machinery Co's EBIT too high?
Reach Machinery Co's current EBIT is ¥120.0 Mil. Overall, Reach Machinery Co has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Reach Machinery Co's EBIT compare to ORLY and AZO?
Reach Machinery Co's EBIT of ¥120.0 Mil can be compared against companies in the Vehicles & Parts 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 Vehicles & Parts company?
A good EBIT depends on the Vehicles & Parts 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 Reach Machinery Co. Reach Machinery Co's current EBIT is ¥120.0 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reach Machinery Co stock overvalued right now?
Reach Machinery Co (SZSE:301596) has a current EBIT of ¥120.0 Mil. The current EBIT is ¥120.0 Mil. Reach Machinery Co's overall GF Score™ is 39/100 with 2 warning signs to review. 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 Reach Machinery Co (SZSE:301596), the current EBIT is ¥120.0 Mil as of Jun. 2026. 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.

Reach Machinery Co Business Description

Address No. 909, Section 4, Middle Xihangang Avenue, Shuangliu District, Sichuan Province, Chengdu, CHN, 610207
Reach Machinery Co Ltd is engaged in the research and development, production and sales of key components for automation equipment transmission and braking systems. Its products include electromagnetic brakes that include spring-loaded brakes, permanent magnet brakes, electric brakes, and other types. Harmonic reducer that includes Cup-RCSD, Top Hat-RHSD, Cup-RCSG, etc. Planetary Roller Screw, Expansion Sleeve and Shrinking Disc.
39GF Score

Get the complete analysis for SZSE:301596

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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