Shopify (Shopify) EBIT : $-78 Mil (TTM As of Dec. 2023)

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What is Shopify EBIT?

Shopify's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $289 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $-78 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Shopify's annualized ROC % for the quarter that ended in Dec. 2023 was 20.65%. Shopify's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 853.14%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Shopify's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -0.09%.

Shopify EBIT Historical Data

The historical data trend for Shopify'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.

Shopify EBIT Chart

Shopify Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

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-95.82

248.94

3,141.74

-822.00

-78.00

Shopify 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															-188.00	-193.00	-296.00	122.00	289.00

Competitive Comparison of Shopify's EBIT

For the Software - Application subindustry, Shopify'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.

Shopify's EV-to-EBIT Distribution in the Software Industry

For the Software industry and Technology sector, Shopify's EV-to-EBIT distribution charts can be found below:

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

Shopify 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 $-78 Mil.

Shopify (NYSE:SHOP) EBIT Explanation

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

Shopify'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 )
=	1156 * ( 1 - 3.67% )	/	( (5013	+	5770)	/ 2 )
=	1113.5748	/	5391.5
=	20.65 %

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	))
=	10464	-	533	-	( 4918	-	max(0, 852	-	6161	+	4918	))
=	5013

	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	))
=	11299	-	521	-	( 5008	-	max(0, 898	-	6275	+	5008	))
=	5770

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

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

Shopify'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 )
=	1156	/	( ( (124 + max(-627, 0))	+	(147 + max(-527, 0)) )	/	2 )
=	1156	/	( ( 124	+	147 )	/	2 )
=	1156	/	135.5
=	853.14 %

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)
=	(48	+	0	+	162)	-	(533	+	304	+	0)
=	-627

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(242	+	0	+	112)	-	(521	+	302	+	58)
=	-527

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:

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

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	-78	/	86953.071
	=	-0.09 %

Shopify EBIT Related Terms

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Shopify (Shopify) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Shopify Inc (NYSE:SHOP) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

SHOP:Mexico 307:Germany 307:Germany SHOP:Canada S2HO34:Brazil

Address

151 O'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P2L8

Website

https://www.shopify.com

Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.