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Varian Medical Systems's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2020 was $126 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2020 was $381 Mil.
EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Varian Medical Systems's annualized ROC % for the quarter that ended in Dec. 2020 was 12.20%. Varian Medical Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2020 was 61.57%.
EBIT is also linked to Joel Greenblatt's definition of earnings yield. Varian Medical Systems's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2020 was 2.41%.
The historical data trend for Varian Medical Systems'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.
Varian Medical Systems Annual Data | |||||||||||||||||||||
Trend | Sep11 | Sep12 | Sep13 | Sep14 | Sep15 | Sep16 | Sep17 | Sep18 | Sep19 | Sep20 | |||||||||||
EBIT | Get a 7-Day Free Trial | 444.00 | 313.80 | 458.90 | 429.60 | 372.30 |
Varian Medical Systems Quarterly Data | ||||||||||||||||||||
Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | |
EBIT | Get a 7-Day Free Trial | 117.40 | 57.10 | 87.70 | 110.10 | 125.70 |
For the Medical Instruments & Supplies subindustry, Varian Medical Systems'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.
For the Medical Devices & Instruments industry and Healthcare sector, Varian Medical Systems's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Varian Medical Systems's EV-to-EBIT falls into.
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. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $381 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.
Varian Medical Systems (NYSE:VAR) EBIT Explanation
1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Varian Medical Systems's annualized ROC % for the quarter that ended in Dec. 2020 is calculated as:
ROC % (Q: Dec. 2020 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Sep. 2020 ) | + | Invested Capital (Q: Dec. 2020 )) | / count ) |
= | 499.6 * ( 1 - 22.19% ) | / | ( (3308.5 | + | 3063.6) | / 2 ) |
= | 388.73876 | / | 3186.05 | |||
= | 12.20 % |
where
Invested Capital | (Q: Sep. 2020 ) | |||||||||||
= | 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 | )) |
= | 4462.2 | - | 404.9 | - | ( 766.1 | - | max(0, 1854.5 | - | 2603.3 | + | 766.1 | )) |
= | 3308.5 |
Invested Capital | (Q: Dec. 2020 ) | |||||||||||
= | 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 | )) |
= | 4526.1 | - | 689.2 | - | ( 773.3 | - | max(0, 1744.9 | - | 2641.3 | + | 773.3 | )) |
= | 3063.6 |
Note: The Operating Income data used here is four times the quarterly (Dec. 2020) data.
2. Joel Greenblatt's definition of Return on Capital:
Varian Medical Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2020 is calculated as:
ROC (Joel Greenblatt) % | (Q: Dec. 2020 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Sep. 2020 | Q: Dec. 2020 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | 502.8 | / | ( ( (465.9 + max(368.3, 0)) | + | (466 + max(333.1, 0)) ) | / | 2 ) |
= | 502.8 | / | ( ( 834.2 | + | 799.1 ) | / | 2 ) |
= | 502.8 | / | 816.65 | ||||
= | 61.57 % |
where Working Capital is:
Working Capital | (Q: Sep. 2020 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (1066.1 | + | 516.3 | + | 254.8) | - | (404.9 | + | 875.6 | + | 188.4) |
= | 368.3 |
Working Capital | (Q: Dec. 2020 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (1029.3 | + | 571.7 | + | 267) | - | (689.2 | + | 845.7 | + | 0) |
= | 333.1 |
When net working capital is negative, 0 is used.
Note: The EBIT data used here is four times the quarterly (Dec. 2020) EBIT data.
3. It is also linked to Joel Greenblatt's definition of Earnings Yield:
Varian Medical Systems's Earnings Yield (Joel Greenblatt) % for today is calculated as:
Earnings Yield (Joel Greenblatt) % | = | EBIT (TTM) | / | Enterprise Value (Q: Dec. 2020 ) |
= | 380.6 | / | 15809.799 | |
= | 2.41 % |
* 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.
Thank you for viewing the detailed overview of Varian Medical Systems's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.
Jesse Michael Bruff | officer: SVP Finance, CFO | 3100 HANSEN WAY, PALO ALTO CA 94304 |
Magnus Momsen | officer: SVP, CAO, Corporate Controller | VARIAN MEDICAL SYSTEMS INC. 3100 HANSEN WAY MAIL STOP E327 PALO ALTO CA 94304 |
Dow R Wilson | director, officer: President and CEO | VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304 |
Kolleen T Kennedy | officer: Pres. Proton Solutions, CGO | VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304 |
Christopher A. Toth | officer: SVP and Pres. Oncology Systems | 1252 COOLIDGE AVE., SAN JOSE CA 95125 |
Michael Damon Hutchinson | officer: SVP,Chief Legal Officer, Secy | 2825 AIRVIEW BLVD, KALAMAZOO MI 49002 |
Jean Luc Butel | director | ONE BAXTER PARKWAY, DEERFIELD IL 60015 |
John W Kuo | officer: SVP, Gen Counsel and Secretary | VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304 |
Judy Bruner | director | C/O SANDISK CORPORATION, 601 MCCARTHY BLVD., MILPITAS CA 95035 |
Beau Michelle Le | director | 800 N. MICHIGAN AVENUE #3703 CHICAGO IL 60611 |
Anat Ashkenazi | director | LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285 |
Jeffrey R. Balser | director | 3657 RICHLAND AVE., NASHVILLE TN 37205 |
Regina E Dugan | director | VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304 |
David J Illingworth | director | 3100 HANSEN WAY PALO ALTO CA 94304 |
R Andrew Eckert | director | THREE RAVINIA DRIVE, ATLANTA GA 30346 |
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