Smith & Nephew (Smith & Nephew) EBIT : $429 Mil (TTM As of Dec. 2023)

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What is Smith & Nephew EBIT?

Smith & Nephew's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2023 was $156 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $429 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Smith & Nephew's annualized ROC % for the quarter that ended in Dec. 2023 was 10.46%. Smith & Nephew's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 8.53%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Smith & Nephew's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 3.23%.

Smith & Nephew EBIT Historical Data

The historical data trend for Smith & Nephew'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.

Smith & Nephew EBIT Chart

Smith & Nephew Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

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818.00

321.00

679.00

326.00

429.00

Smith & Nephew 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															414.00	239.00	87.00	273.00	156.00

Competitive Comparison of Smith & Nephew's EBIT

For the Medical Devices subindustry, Smith & Nephew'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.

Smith & Nephew's EV-to-EBIT Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Smith & Nephew's EV-to-EBIT distribution charts can be found below:

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

Smith & Nephew 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 $429 Mil.

Smith & Nephew (NYSE:SNN) EBIT Explanation

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

Smith & Nephew'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 )
=	770 * ( 1 - -15.19% )	/	( (8513	+	8440)	/ 2 )
=	886.963	/	8476.5
=	10.46 %

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	))
=	9844	-	1141	-	( 190	-	max(0, 1767	-	3878	+	190	))
=	8513

	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	))
=	9987	-	1245	-	( 302	-	max(0, 2271	-	4030	+	302	))
=	8440

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:

Smith & Nephew'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 )
=	312	/	( ( (1421 + max(2328, 0))	+	(1470 + max(2100, 0)) )	/	2 )
=	312	/	( ( 3749	+	3570 )	/	2 )
=	312	/	3659.5
=	8.53 %

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)
=	(1269	+	2411	+	8)	-	(1141	+	0	+	219)
=	2328

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1059	+	2395	+	152)	-	(1245	+	0	+	261)
=	2100

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:

Smith & Nephew's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	429	/	13287.281
	=	3.23 %

Smith & Nephew EBIT Related Terms

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Smith & Nephew (Smith & Nephew) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Smith & Nephew PLC (NYSE:SNN) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

SNNUF:USA SNl:UK SN.:UK NPW1:Germany NPWA:Germany NPW1:Germany S1NN34:Brazil

Address

Hatters Lane, Building 5, Croxley Park, Watford, Hertfordshire, GBR, WD18 8YE

Website

https://www.smith-nephew.com

Smith & Nephew designs, manufactures, and markets orthopedic devices, sports medicine and arthroscopic technologies, and wound-care solutions. Roughly 41% of the U.K.-based firm's revenue comes from orthopedic products, and another 30% is sports medicine and ENT. The remaining 29% of revenue is from the advanced wound therapy segment. Roughly half of Smith & Nephew's total revenue comes from the United States, just over 30% is from other developed markets, and emerging markets account for the remainder.