ArthroCare (FRA:BQK) EBIT : €20.9 Mil (TTM As of Mar. 2014)

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What is ArthroCare EBIT?

ArthroCare's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2014 was €6.7 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2014 was €20.9 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. ArthroCare's annualized ROC % for the quarter that ended in Mar. 2014 was 9.06%. ArthroCare's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2014 was 36.19%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. ArthroCare's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2014 was 1.71%.

ArthroCare EBIT Historical Data

The historical data trend for ArthroCare'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.

ArthroCare EBIT Chart

ArthroCare Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

EBIT

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0.57

38.69

-12.29

49.19

24.16

ArthroCare Quarterly Data
	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14
EBIT	Get a 7-Day Free Trial															10.40	-8.38	9.54	13.08	6.65

Competitive Comparison of ArthroCare's EBIT

For the Medical Devices subindustry, ArthroCare'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.

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

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

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

ArthroCare 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. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €20.9 Mil.

ArthroCare (FRA:BQK) EBIT Explanation

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

ArthroCare's annualized ROC % for the quarter that ended in Mar. 2014 is calculated as:

	ROC % (Q: Mar. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2013 )	+	Invested Capital (Q: Mar. 2014 ))	/ count )
=	26.612 * ( 1 - 23% )	/	( (215.089	+	237.298)	/ 2 )
=	20.49124	/	226.1935
=	9.06 %

where

	Invested Capital		(Q: Dec. 2013 )
=	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	))
=	433.723	-	61.791	-	( 156.843	-	max(0, 62.049	-	242.636	+	156.843	))
=	215.089

	Invested Capital		(Q: Mar. 2014 )
=	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	))
=	413.14	-	37.746	-	( 138.096	-	max(0, 37.945	-	222.922	+	138.096	))
=	237.298

Note: The Operating Income data used here is four times the quarterly (Mar. 2014) data.

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

ArthroCare's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2014 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2014 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2013		Q: Mar. 2014
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	26.612	/	( ( (37.408 + max(23.744, 0))	+	(39.051 + max(46.881, 0)) )	/	2 )
=	26.612	/	( ( 61.152	+	85.932 )	/	2 )
=	26.612	/	73.542
=	36.19 %

where Working Capital is:

	Working Capital		(Q: Dec. 2013 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(38.551	+	33.79	+	13.452)	-	(61.791	+	0.258	+	0)
=	23.744

	Working Capital		(Q: Mar. 2014 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(36.885	+	35.215	+	12.726)	-	(37.746	+	0	+	0.199)
=	46.881

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2014) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Mar. 2014 )
	=	20.894	/	1219.767
	=	1.71 %

ArthroCare EBIT Related Terms

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ArthroCare (FRA:BQK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » ArthroCare Corp (FRA:BQK) » Definitions » EBIT

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Address

Website

http://www.arthrocare.com

ArthroCare was incorporated in California in 1993 and reincorporated in Delaware in 1995. The Company is a multi-business medical device Company that develops, manufactures and markets minimally invasive surgical products, many of which are based on its patented Coblation(r) technology. The Company has grown well beyond its roots in arthroscopy to capitalize on numerous market opportunities across several medical specialties, improving many existing soft-tissue surgical procedures and enabling new minimally invasive procedures. With its innovative technologies, the Company is improving the lives of individuals suffering from conditions as diverse as torn rotator cuffs and anterior cruciate ligaments to herniated discs and enlarged tonsils/tonsillitis. The Company currently markets minimally invasive surgical products across three core business units-ArthroCare Sports Medicine, which include shoulder and knee arthroscopic products; ArthroCare Spine, which include spinal and neurosurgery products; and ArthroCare Ear, Nose and Throat, which include ear, nose, throat and the Visage(r) cosmetic products; - but also has developed, manufactured and marketed Coblation-based and complementary products for application in neurology, cosmetic surgery, urology and gynecology, with research continuing in additional areas. In each of its core business units, the Company is focusing on driving the application of enabling technologies, primarily for plasma-based soft tissue removal, and increasing the number of minimally invasive procedures being performed. The Company is marketing and selling its arthroscopic/sports medicine, spinal surgery, ENT and cosmetic surgery products using a combination of distributors supported by regional sales mangers, a direct sales force and corporate partners to sell its products both domestically and internationally. The Company owns over 170 issued U.S. patents and over 195 issued international patents. The Company's products are considered medical devices and are subject to regulation in the United States, with the approval of FDA for each of its products. Its primary competitors include Medtronic, Inc., Smith & Nephew, Stryker Corporation, Johnson & Johnson, Olympus (through its subsidiary Gyrus) and Arthrex, Inc.

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