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Zoom Video Communications (Zoom Video Communications) EBIT : $525 Mil (TTM As of Jan. 2024)


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What is Zoom Video Communications EBIT?

Zoom Video Communications's earnings before interest and taxes (EBIT) for the three months ended in Jan. 2024 was $169 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2024 was $525 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Zoom Video Communications's annualized ROC % for the quarter that ended in Jan. 2024 was 16.56%. Zoom Video Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 190.00%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Zoom Video Communications's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 4.42%.


Zoom Video Communications EBIT Historical Data

The historical data trend for Zoom Video Communications'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.

Zoom Video Communications EBIT Chart

Zoom Video Communications Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
EBIT
Get a 7-Day Free Trial 12.70 659.85 1,063.59 245.43 525.28

Zoom Video Communications Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 -129.89 9.74 177.62 169.39 168.53

Competitive Comparison of Zoom Video Communications's EBIT

For the Software - Application subindustry, Zoom Video Communications'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.


Zoom Video Communications's EV-to-EBIT Distribution in the Software Industry

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

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



Zoom Video Communications 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 Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $525 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.


Zoom Video Communications  (NAS:ZM) EBIT Explanation

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

Zoom Video Communications's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

ROC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=674.12 * ( 1 - 15.32% )/( (3371.607 + 3524.253)/ 2 )
=570.844816/3447.93
=16.56 %

where

Invested Capital(Q: Oct. 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))
=9317.472 - 214.111 - ( 6494.417 - max(0, 1753.005 - 7484.759+6494.417))
=3371.607

Invested Capital(Q: Jan. 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))
=9929.793 - 241.508 - ( 6962.485 - max(0, 1762.187 - 7926.219+6962.485))
=3524.253

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

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

Zoom Video Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2023  Q: Jan. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=674.12/( ( (356.909 + max(-762.29, 0)) + (352.679 + max(-773.808, 0)) )/ 2 )
=674.12/( ( 356.909 + 352.679 )/ 2 )
=674.12/354.794
=190.00 %

where Working Capital is:

Working Capital(Q: Oct. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(514.045 + 0 + 452.766) - (214.111 + 1337.835 + 177.155)
=-762.29

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(536.078 + 0 + 427.656) - (241.508 + 1291.99 + 204.044)
=-773.808

When net working capital is negative, 0 is used.

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

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

Zoom Video Communications's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Jan. 2024 )
=525.279/11883.910
=4.42 %

* 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.


Zoom Video Communications EBIT Related Terms

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Zoom Video Communications (Zoom Video Communications) Business Description

Address
55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
Executives
Aparna Bawa officer: General Counsel C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Shane Crehan officer: Chief Accounting Officer C/O EVENTBRITE, INC., 155 5TH STREET, 7TH FLOOR, SAN FRANCISCO CA 94103
Velchamy Sankarlingam officer: Pres. of Engineering & Product C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Eric S. Yuan director, 10 percent owner, officer: Chief Executive Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Santiago Subotovsky director C/O EMERGENCE CAPITAL PARTNERS, 160 BOVENT ROAD SUITE 300, SAN MATEO CA 94402
Kelly Steckelberg officer: Chief Financial Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Jonathan Chadwick director 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Gregory Tomb officer: President 650 CASTRO ST, SUITE 400, MOUNTAIN VIEW CA 94041
Cindy L Hoots director C/O ZOOM VIDEO COMMUNICATIONS, INC, 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
William R Mcdermott director 2225 LAWSON LANE, SANTA CLARA CA 95054
Ryan Azus officer: Chief Revenue Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Carl M. Eschenbach director, 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, PALO ALTO CA 94025
Janine Pelosi officer: Chief Marketing Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Kimberly Hammonds director 100 EAST DAVIE STREET, RALEIGH NC 27601
Bart Swanson director C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113