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LPL Financial Holdings (LPL Financial Holdings) EBIT : $1,632 Mil (TTM As of Dec. 2023)


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What is LPL Financial Holdings EBIT?

LPL Financial Holdings's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $348 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $1,632 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. LPL Financial Holdings's annualized ROC % for the quarter that ended in Dec. 2023 was 16.14%. LPL Financial Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 138.91%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. LPL Financial Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 7.00%.


LPL Financial Holdings EBIT Historical Data

The historical data trend for LPL Financial Holdings'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.

LPL Financial Holdings EBIT Chart

LPL Financial Holdings 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 871.84 731.84 705.74 1,237.89 1,631.58

LPL Financial Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 456.30 483.68 433.66 366.04 348.20

Competitive Comparison of LPL Financial Holdings's EBIT

For the Capital Markets subindustry, LPL Financial Holdings'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.


LPL Financial Holdings's EV-to-EBIT Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's EV-to-EBIT distribution charts can be found below:

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



LPL Financial Holdings 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 quarterly data reported by the company within the most recent 12 months, which was $1,632 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.


LPL Financial Holdings  (NAS:LPLA) EBIT Explanation

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

LPL Financial Holdings'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: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=1392.808 * ( 1 - 25.95% )/( (5992.095 + 6787.792)/ 2 )
=1031.374324/6389.9435
=16.14 %

where

Invested Capital(Q: Sep. 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))
=9487.329 - 2696.025 - ( 799.209 - max(0, 3280.205 - 5106.019+799.209))
=5992.095

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))
=10385.48 - 3132.017 - ( 465.671 - max(0, 3288.231 - 5615.863+465.671))
=6787.792

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

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

LPL Financial Holdings'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: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1392.808/( ( (978.391 + max(-695.636, 0)) + (1026.888 + max(-411.115, 0)) )/ 2 )
=1392.808/( ( 978.391 + 1026.888 )/ 2 )
=1392.808/1002.6395
=138.91 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(581.017 + 0 + 1591.552) - (2696.025 + 172.18 + 0)
=-695.636

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(588.585 + 0 + 2288.531) - (3132.017 + 156.214 + 4.5474735088646E-13)
=-411.115

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

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

LPL Financial Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2023 )
=1631.579/23324.449
=7.00 %

* 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.


LPL Financial Holdings EBIT Related Terms

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LPL Financial Holdings (LPL Financial Holdings) Business Description

Traded in Other Exchanges
Address
4707 Executive Drive, San Diego, CA, USA, 92121
LPL Financial Holdings is an independent broker/dealer that provides a platform of proprietary technology, brokerage, and investment advisory services to financial advisors and institutions. As of the end of 2022, the company had nearly 20,000 advisors on its platform managing over $1 trillion of client assets.
Executives
Sallie R. Larsen officer: MD, Chief Human Cap. Officer ONE BEACON STREET, 22ND FLOOR, BOSTON MA 02018
Aneri Jambusaria officer: Managing Director C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Dan H. Arnold officer: MD & Division President, FIS C/O LPL INVESTMENT HOLDINGS INC., ONE BEACON STREET, BOSTON MA 02108
Richard Steinmeier officer: Managing Director C/O LPL FINANCIAL HOLDINGS, INC., 75 STATE STREET, 22ND FLOOR, BOSTON MA 02109
Althea Brown officer: Managing Director C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Matthew Enyedi officer: Managing Director C/O LPL FINANCIAL HOLDINGS, INC., 75 STATE STREET, 22ND FLOOR, BOSTON MA 02109
Glavin William Francis Jr director 6803 SOUTH TUCSON WAY, CENTENNIAL CO 80112
Richard P Schifter director 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Michelle Oroschakoff officer: MD, Chief Risk Officer 75 STATE STREET, 24TH FLOOR, BOSTON MA 02109
Matthew J Audette officer: Chief Financial Officer C/O DAVIS POLK & WARDWELL, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Albert J Ko director C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Brent Simonich officer: EVP, CAO and Treasurer C/O E*TRADE FINANCIAL CORP., 11 TIMES SQUARE, 32ND FLOOR, NEW YORK NY 10036-9992
Kabir Sethi officer: Managing Director C/O LPL FINANCIAL, 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
Edward Fandrey officer: Managing Director C/O LPL FINANCIAL, 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121
George Burton White officer: MD, Chief Investment Officer ONE BEACON STREET, 22ND FLOOR, BOSTON MA 02108