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Open Text (TSX:OTEX) EBIT : C$1,954 Mil (TTM As of Dec. 2024)


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What is Open Text EBIT?

Open Text's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2024 was C$536 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2024 was C$1,954 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Open Text's annualized ROC % for the quarter that ended in Dec. 2024 was 7.76%. Open Text's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 268.05%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Open Text's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 11.13%.


Open Text EBIT Historical Data

The historical data trend for Open Text'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.

Open Text EBIT Chart

Open Text Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 682.14 985.17 868.79 802.80 1,774.27

Open Text Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 261.42 337.37 830.18 250.80 536.14

Competitive Comparison of Open Text's EBIT

For the Software - Application subindustry, Open Text'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.


Open Text's EV-to-EBIT Distribution in the Software Industry

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

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


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Open Text 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. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was C$1,954 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.


Open Text  (TSX:OTEX) EBIT Explanation

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

Open Text's annualized ROC % for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=1772.536 * ( 1 - 18.12% )/( (18391.642 + 19007.074)/ 2 )
=1451.3524768/18699.358
=7.76 %

where

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))
=18665.428 - 977.427 - ( 1354.897 - max(0, 3385.876 - 2682.235+1354.897))
=18391.642

Invested Capital(Q: Dec. 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))
=19563.572 - 1006.72 - ( 1598.787 - max(0, 3420.803 - 2970.581+1598.787))
=19007.074

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

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

Open Text's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2024  Q: Dec. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2144.556/( ( (792.394 + max(-2133.954, 0)) + (807.742 + max(-2085.969, 0)) )/ 2 )
=2144.556/( ( 792.394 + 807.742 )/ 2 )
=2144.556/800.068
=268.05 %

where Working Capital is:

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(802.755 + 0 + 298.587) - (977.427 + 1964.788 + 293.081)
=-2133.954

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(911.254 + 0 + 266.081) - (1006.72 + 2069.71 + 186.874)
=-2085.969

When net working capital is negative, 0 is used.

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

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

Open Text's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2024 )
=1954.488/17553.144
=11.13 %

* 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.


Open Text EBIT Related Terms

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Open Text Business Description

Traded in Other Exchanges
Address
275 Frank Tompa Drive, Waterloo, ON, CAN, N2L 0A1
Open Text Corp is engaged in the design, development, marketing, and sale of Information Management software and solutions. Its software allows clients to archive, aggregate, retrieve, and search unstructured information (such as documents, e-mail, and presentations). Its platform and services provide secure and scalable solutions for enterprises, SMBs, governments, and consumers around the world. The company's solutions are marketed and delivered on the OpenText Cloud Platform, which is a comprehensive Information Management platform consisting of six business clouds; Content Cloud, Cybersecurity Cloud, Application Automation Cloud, Business Network Cloud, IT Operations Management Cloud, and Analytics Cloud. Geographically, it derives maximum revenue from the United States.
Executives
Brian Paul Sweeney Senior Officer
Richard Paul Rodgers Senior Officer
Madhu Ranganathan Senior Officer
Mark James Barrenechea Director, Senior Officer
Michael William George Slaunwhite Director
Cosmin Razvan Balota Senior Officer
James Prentiss Donohue Senior Officer
Paul Michael Duggan Senior Officer
Simon David Harrison Senior Officer
Muhieddine Majzoub Senior Officer
Christopher James Mcgourlay Senior Officer
Douglas Michael Parker Senior Officer
Michael Fernando Acedo Senior Officer
David Fraser Director
Renee Dione Mckenzie Senior Officer