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Pearson (Pearson) EBIT : $701 Mil (TTM As of Dec. 2023)


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What is Pearson EBIT?

Pearson's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2023 was $400 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $701 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Pearson's annualized ROC % for the quarter that ended in Dec. 2023 was 7.35%. Pearson's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 57.72%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Pearson's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 7.39%.


Pearson EBIT Historical Data

The historical data trend for Pearson'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.

Pearson EBIT Chart

Pearson 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 391.87 616.94 325.80 477.47 701.27

Pearson Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 284.57 235.22 244.82 300.51 400.00

Competitive Comparison of Pearson's EBIT

For the Publishing subindustry, Pearson'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.


Pearson's EV-to-EBIT Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Pearson's EV-to-EBIT distribution charts can be found below:

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



Pearson 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. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was $701 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.


Pearson  (NYSE:PSO) EBIT Explanation

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

Pearson's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=713.924 * ( 1 - 24.9% )/( (6919.192 + 7673.418)/ 2 )
=536.156924/7296.305
=7.35 %

where

Invested Capital(Q: Jun. 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))
=8689.394 - 1321.97 - ( 448.232 - max(0, 1469.697 - 3174.242+448.232))
=6919.192

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))
=8515.19 - 446.835 - ( 394.937 - max(0, 1777.215 - 3079.747+394.937))
=7673.418

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

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

Pearson's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=800/( ( (285.354 + max(1351.01, 0)) + (274.684 + max(860.759, 0)) )/ 2 )
=800/( ( 1636.364 + 1135.443 )/ 2 )
=800/1385.9035
=57.72 %

where Working Capital is:

Working Capital(Q: Jun. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1338.384 + 138.889 + 1248.737) - (1321.97 + 0 + 53.03)
=1351.01

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(878.481 + 115.19 + 1559.493) - (446.835 + 0 + 1245.57)
=860.759

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2023 )
=700.505/9474.441
=7.39 %

* 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.


Pearson EBIT Related Terms

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Pearson (Pearson) Business Description

Address
80 Strand, London, GBR, WC2R 0RL
U.K.-listed Pearson is the world's largest educational provider. The company has been disposing of noncore businesses such as the Financial Times, The Economist, and publishing house Penguin, and is now focused on being an educational resource and testing provider. While Pearson's primary activity centres on higher-level education, the firm also has significant operations in providing clinical assessments, professional certification and testing.