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Visa (FRA:3V64) EBIT : €21,230 Mil (TTM As of Mar. 2024)


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What is Visa EBIT?

Visa's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2024 was €5,147 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2024 was €21,230 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Visa's annualized ROC % for the quarter that ended in Mar. 2024 was 27.47%. Visa's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 631.25%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Visa's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 4.02%.

Visa EBIT Historical Data

The historical data trend for Visa'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.

Visa EBIT Chart

Visa Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13,998.64 12,145.79 14,089.60 18,860.74 20,315.10

Visa Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 5,062.28 4,917.74 5,452.40 5,711.99 5,147.40

Competitive Comparison of Visa's EBIT

For the Credit Services subindustry, Visa'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.

Visa's EV-to-EBIT Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Visa's EV-to-EBIT distribution charts can be found below:

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


Visa 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. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €21,230 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.

Visa  (FRA:3V64) EBIT Explanation

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

Visa's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=21285.12 * ( 1 - 15.42% )/( (64823.647 + 66244.6)/ 2 )
=18002.954496/65534.1235
=27.47 %

where

Invested Capital(Q: Dec. 2023 )
=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))
=83822.053 - 9738.54 - ( 17052.532 - max(0, 20755.378 - 30015.244+17052.532))
=64823.647

Invested Capital(Q: Mar. 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))
=85007.08 - 10177.04 - ( 16286.76 - max(0, 21567.56 - 30153+16286.76))
=66244.6

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

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

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

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=20589.6/( ( (3183.824 + max(-10108.091, 0)) + (3339.6 + max(-10974.68, 0)) )/ 2 )
=20589.6/( ( 3183.824 + 3339.6 )/ 2 )
=20589.6/3261.712
=631.25 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2298.002 + 0 + 8349.285) - (9738.54 + 0 + 11016.838)
=-10108.091

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2090.24 + 0 + 8502.64) - (10177.04 + 0 + 11390.52)
=-10974.68

When net working capital is negative, 0 is used.

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

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2024 )
=21229.54/527794.169
=4.02 %

* 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.

Visa EBIT Related Terms

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Visa (FRA:3V64) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Visa Inc (FRA:3V64) » Definitions » EBIT
Comparable Companies
MA AXP PYPL COF DFS SYF ALLY SOFI CACC OMF BOM:500034 IST:QNBFL BOM:543257 BOM:532810 BOM:532955 XPAR:EDEN NSE:CHOLAFIN NSE:SHRIRAMFIN TSE:8593 TPE:5871
Traded in Other Exchanges
V:USA V:Peru V:Mexico 1V:Italy 3V64d:UK 0QZ0:UK 3V64:Germany V:Chile VISA:Canada VISA34:Brazil VISA:Austria
Address
P.O. Box 8999, San Francisco, CA, USA, 94128-8999
Website
https://www.usa.visa.com
Visa is the largest payment processor in the world. In fiscal 2022, it processed over $14 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.

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