Spotify Technology (Spotify Technology) EBIT : $-37 Mil (TTM As of Mar. 2024)

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What is Spotify Technology EBIT?

Spotify Technology's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2024 was $247 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2024 was $-37 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Spotify Technology's annualized ROC % for the quarter that ended in Mar. 2024 was 19.29%. Spotify Technology's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 173.48%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Spotify Technology's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -0.07%.

Spotify Technology EBIT Historical Data

The historical data trend for Spotify Technology'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.

Spotify Technology EBIT Chart

Spotify Technology Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

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-97.78

-796.84

338.98

-330.51

-497.27

Spotify Technology Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
EBIT	Get a 7-Day Free Trial															-138.12	-250.27	87.51	-121.05	246.74

Competitive Comparison of Spotify Technology's EBIT

For the Internet Content & Information subindustry, Spotify Technology'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.

Spotify Technology's EV-to-EBIT Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Spotify Technology's EV-to-EBIT distribution charts can be found below:

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

Spotify Technology 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. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-37 Mil.

Spotify Technology (NYSE:SPOT) EBIT Explanation

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

Spotify Technology's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	730.436 * ( 1 - -13.22% )	/	( (4112.323	+	4464.13)	/ 2 )
=	826.9996392	/	4288.2265
=	19.29 %

where

	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	))
=	9101.418	-	3713.195	-	( 4595.42	-	max(0, 4460.196	-	5736.096	+	4595.42	))
=	4112.323

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	9864.13	-	3576.087	-	( 5077.174	-	max(0, 4310.87	-	6134.783	+	5077.174	))
=	4464.13

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

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

Spotify Technology's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	986.956	/	( ( (596.51 + max(-3620.501, 0))	+	(541.304 + max(-3276.087, 0)) )	/	2 )
=	986.956	/	( ( 596.51	+	541.304 )	/	2 )
=	986.956	/	568.907
=	173.48 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(656.489	+	0	+	183.206)	-	(3713.195	+	678.299	+	68.701999999999)
=	-3620.501

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(844.565	+	0	+	190.218)	-	(3576.087	+	689.13	+	45.653)
=	-3276.087

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

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

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

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Mar. 2024 )
	=	-37.066	/	54524.481
	=	-0.07 %

Spotify Technology EBIT Related Terms

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Spotify Technology (Spotify Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Spotify Technology SA (NYSE:SPOT) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

SPOT:Mexico 1SPOT:Italy 639:Germany 639:Germany S1PO34:Brazil SPOT:Austria

Address

5, Place de la Gare, Luxembourg, LUX, L-1616

Website

https://www.spotify.com

Spotify, headquartered in Stockholm, Sweden, is one of the world's largest music streaming service providers, with 489 million total listeners. The firm monetizes its users through a paid subscription model, referred to as its premium service, and an ad-based model, referred to as its ad-supported service. Revenue from premium and ad-supported services represented 87% and 13% of Spotify's 2022 total revenue, respectively.