GURUFOCUS.COM » STOCK LIST » Technology » Software » Bandwidth Inc (NAS:BAND) » Definitions » EBIT

Bandwidth (Bandwidth) EBIT : $-13.1 Mil (TTM As of Mar. 2024)


View and export this data going back to 2017. Start your Free Trial

What is Bandwidth EBIT?

Bandwidth's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2024 was $-10.4 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2024 was $-13.1 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Bandwidth's annualized ROC % for the quarter that ended in Mar. 2024 was -4.68%. Bandwidth's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -12.52%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Bandwidth's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -1.23%.


Bandwidth EBIT Historical Data

The historical data trend for Bandwidth'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.

Bandwidth EBIT Chart

Bandwidth Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EBIT
Get a 7-Day Free Trial Premium Member Only -17.69 -13.51 -2.41 20.35 -18.50

Bandwidth 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 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 -11.76 -3.42 -6.15 6.93 -10.42

Competitive Comparison of Bandwidth's EBIT

For the Software - Infrastructure subindustry, Bandwidth'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.


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

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

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



Bandwidth 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 $-13.1 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.


Bandwidth  (NAS:BAND) EBIT Explanation

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

Bandwidth'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 )
=-41.664 * ( 1 - 2.12% )/( (886.964 + 856.209)/ 2 )
=-40.7807232/871.5865
=-4.68 %

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))
=1101.048 - 84.08 - ( 153.475 - max(0, 122.771 - 252.775+153.475))
=886.964

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))
=1085.531 - 82.093 - ( 147.229 - max(0, 108.7 - 257.027+147.229))
=856.209

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

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

Bandwidth'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 )
=-41.664/( ( (335.371 + max(-60.511, 0)) + (330.177 + max(-39.475, 0)) )/ 2 )
=-41.664/( ( 335.371 + 330.177 )/ 2 )
=-41.664/332.774
=-12.52 %

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)
=(35.652 + 0 + 21.145) - (84.08 + 14.086 + 19.142)
=-60.511

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(43.79 + 0 + 20.346) - (82.093 + 12.091 + 9.427)
=-39.475

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:

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2024 )
=-13.051/1063.221
=-1.23 %

* 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.


Bandwidth EBIT Related Terms

Thank you for viewing the detailed overview of Bandwidth's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.


Bandwidth (Bandwidth) Business Description

Traded in Other Exchanges
Address
900 Main Campus Drive, Raleigh, NC, USA, 27606
Bandwidth Inc is cloud-based communications platform-as-a-service (CPaaS) provider that enables enterprises to create, scale and operate voice or messaging communications services across any mobile application or connected device. Company earns revenue through the sale of communications services offered through Application Programming Interface software solutions to large as well as small and medium-sized business, customers and is generally derived from usage and service fees. Usage revenue includes voice communication (driven by inbound and outbound minutes and toll-free minutes) and messaging communication (driven by the number of messages) that traverse the platform and network. Service fees include the provision and management of phone numbers and emergency services access.
Executives
Richard Brandon Asbill officer: General Counsel C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606
Devin M Krupka officer: Controller, PAO C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
Daryl Raiford officer: Chief Financial Officer C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606
Kade Ross officer: Chief Information Officer C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
David A. Morken director, 10 percent owner, officer: Chairman & CEO C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
Rebecca Bottorff officer: Chief People Officer C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
Anthony Bartolo officer: Chief Operating Officer C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606
Lukas M. Roush director C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
Marina C. Carreker officer: President C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606
Douglas A Suriano director C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
Brian D. Bailey director, 10 percent owner C/O CARMICHAEL INVESTMENT PARTNERS LLC, 4725 PIEDMONT ROW DRIVE, SUITE 210, CHARLOTTE NC 28210
Gabriela Gonzalez officer: Sr. VP Finance, Controller 1801 VARSITY DRIVE, RALEIGH NC 27606
John C. Murdock director, 10 percent owner, officer: President C/O BANDWIDTH INC., 2230 BANDMATE WAY, RALEIGH NC 27607
Jeffrey A. Hoffman officer: Chief Financial Officer C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606
W. Christopher Matton officer: General Counsel C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606