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RONA (TSX:RON.PR.B.PFD) EBIT : C$104.50 Mil (TTM As of Mar. 2016)


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What is RONA EBIT?

RONA's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2016 was C$-14.39 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was C$104.50 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. RONA's annualized ROC % for the quarter that ended in Mar. 2016 was -2.01%. RONA's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2016 was -4.27%.

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


RONA EBIT Historical Data

The historical data trend for RONA'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.

RONA EBIT Chart

RONA Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only -26.18 46.63 -36.55 118.30 109.76

RONA Quarterly Data
Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16
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 -9.13 75.99 22.21 20.69 -14.39

Competitive Comparison of RONA's EBIT

For the Home Improvement Retail subindustry, RONA'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.


RONA's EV-to-EBIT Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, RONA's EV-to-EBIT distribution charts can be found below:

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



RONA 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 Mar. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was C$104.50 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.


RONA  (TSX:RON.PR.B.PFD) EBIT Explanation

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

RONA's annualized ROC % for the quarter that ended in Mar. 2016 is calculated as:

ROC % (Q: Mar. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2015 ) + Invested Capital (Q: Mar. 2016 ))/ count )
=-57.556 * ( 1 - 26.86% )/( (2079.067 + 2115.786)/ 2 )
=-42.0964584/2097.4265
=-2.01 %

where

Invested Capital(Q: Dec. 2015 )
=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))
=2483.742 - 403.549 - ( 1.126 - max(0, 615.377 - 1239.335+1.126))
=2079.067

Invested Capital(Q: Mar. 2016 )
=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))
=2643.673 - 526.269 - ( 1.618 - max(0, 685.258 - 1397.641+1.618))
=2115.786

Note: The Operating Income data used here is four times the quarterly (Mar. 2016) data.

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

RONA's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2016 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2016 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2015  Q: Mar. 2016
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-57.556/( ( (679.601 + max(780.244, 0)) + (675.241 + max(561.457, 0)) )/ 2 )
=-57.556/( ( 1459.845 + 1236.698 )/ 2 )
=-57.556/1348.2715
=-4.27 %

where Working Capital is:

Working Capital(Q: Dec. 2015 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(228.573 + 947.832 + 28.657) - (403.549 + 0 + 21.269)
=780.244

Working Capital(Q: Mar. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 1069.919 + 38.788) - (526.269 + 0 + 20.981)
=561.457

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2016) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2016 )
=104.498/0.000
= %

* 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.


RONA EBIT Related Terms

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RONA Business Description

Traded in Other Exchanges
N/A
Address
Rona Inc founded on October 6, 1939, is engaged in the distribution and retail of hardware, home improvement and gardening products in Canada. The Company has three segments of activity in hardware, renovation and construction marketplace: distribution, retail and commercial and professional. The Company provides automotive products, building materials and accessories, decoration products, gutter and accessories, hand tools, hardware products, horticulture products, kitchen and bathroom products, lighting and electrical products, paint products, plumbing products, power tools, pre-seasonal products, storage and house ware products, tiling products, winter season products, and gift cards, as well as heating, ventilation, and air conditioning (HVAC) products. The Company also provides construction plans. The Company's model comprises of various store formats that address specific markets or consumer sectors and three ownership formulas.

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