Compass Group (LSE:CPG) EBIT : £1,940 Mil (TTM As of Sep. 2023)

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What is Compass Group EBIT?

Compass Group's earnings before interest and taxes (EBIT) for the six months ended in Sep. 2023 was £1,020 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2023 was £1,940 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Compass Group's annualized ROC % for the quarter that ended in Sep. 2023 was 12.90%. Compass Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 118.57%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Compass Group's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 4.68%.

Compass Group EBIT Historical Data

The historical data trend for Compass Group'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.

Compass Group EBIT Chart

Compass Group Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

EBIT

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1,616.00

354.00

584.00

1,592.00

1,940.00

Compass Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
EBIT	Get a 7-Day Free Trial															391.00	673.00	919.00	920.00	1,020.00

Competitive Comparison of Compass Group's EBIT

For the Restaurants subindustry, Compass Group'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.

Compass Group's EV-to-EBIT Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Compass Group's EV-to-EBIT distribution charts can be found below:

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

Compass Group 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 Sep. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was £1,940 Mil.

Compass Group (LSE:CPG) EBIT Explanation

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

Compass Group's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	2500 * ( 1 - 26.2% )	/	( (12489	+	16116)	/ 2 )
=	1845	/	14302.5
=	12.90 %

where

	Invested Capital		(Q: Mar. 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	))
=	17302	-	5516	-	( 1198	-	max(0, 6444	-	5741	+	1198	))
=	12489

	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	))
=	17600	-	3424	-	( 843	-	max(0, 7635	-	5695	+	843	))
=	16116

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

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

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

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	2040	/	( ( (1673 + max(-1261, 0))	+	(1768 + max(-2457, 0)) )	/	2 )
=	2040	/	( ( 1673	+	1768 )	/	2 )
=	2040	/	1720.5
=	118.57 %

where Working Capital is:

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(3891	+	542	+	110)	-	(5516	+	0	+	288)
=	-1261

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(3059	+	567	+	271)	-	(3424	+	0	+	2930)
=	-2457

When net working capital is negative, 0 is used.

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

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

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

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Sep. 2023 )
	=	1940	/	41426.480
	=	4.68 %

Compass Group EBIT Related Terms

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Compass Group (LSE:CPG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Compass Group PLC (LSE:CPG) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

CMPGY:USA CMPGF:USA CPG:Mexico CPGl:UK XGR2:Germany

Address

Guildford Street, Compass House, Chertsey, Surrey, GBR, KT16 9BQ

Website

https://www.compass-group.com

Compass Group is the largest food-service company globally, operating in more than 50 countries with annual sales of more than GBP 25 billion. Compass Group's model stems from operating on-premises catering facilities, rather than centralised industrial kitchens. Food service is Compass' core focus and contributes more than 80% of revenue. In addition, the company provides support services to clients through activities including cleaning services, office services (for example, concierge services), grounds maintenance, and so on.