Rent the Runway (Rent the Runway) EBIT : $-77.0 Mil (TTM As of Jan. 2024)

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What is Rent the Runway EBIT?

Rent the Runway's earnings before interest and taxes (EBIT) for the three months ended in Jan. 2024 was $-16.5 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2024 was $-77.0 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Rent the Runway's annualized ROC % for the quarter that ended in Jan. 2024 was -32.32%. Rent the Runway's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was -38.85%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Rent the Runway's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was -23.98%.

Rent the Runway EBIT Historical Data

The historical data trend for Rent the Runway'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.

Rent the Runway EBIT Chart

Rent the Runway Annual Data

Trend

Jan20

Jan21

Jan22

Jan23

Jan24

EBIT

-130.00

-130.50

-125.90

-95.90

-76.90

Rent the Runway Quarterly Data
	Jan20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
EBIT	Get a 7-Day Free Trial											-11.50	-21.30	-17.50	-21.70	-16.50

Competitive Comparison of Rent the Runway's EBIT

For the Apparel Retail subindustry, Rent the Runway'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.

Rent the Runway's EV-to-EBIT Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Rent the Runway's EV-to-EBIT distribution charts can be found below:

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

Rent the Runway 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 $-77.0 Mil.

Rent the Runway (NAS:RENT) EBIT Explanation

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

Rent the Runway'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 )
=	-64.8 * ( 1 - -2.06% )	/	( (210.7	+	198.6)	/ 2 )
=	-66.13488	/	204.65
=	-32.32 %

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	))
=	310.3	-	43.8	-	( 105.9	-	max(0, 65.5	-	121.3	+	105.9	))
=	210.7

	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	))
=	278.5	-	25.8	-	( 84	-	max(0, 48.1	-	102.2	+	84	))
=	198.6

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

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

Rent the Runway'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 )
=	-66	/	( ( (176.2 + max(-47, 0))	+	(163.6 + max(-25.3, 0)) )	/	2 )
=	-66	/	( ( 176.2	+	163.6 )	/	2 )
=	-66	/	169.9
=	-38.85 %

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)
=	(0	+	0	+	15.4)	-	(43.8	+	11.8	+	6.8)
=	-47

	Working Capital		(Q: Jan. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	18.2)	-	(25.8	+	10.9	+	6.8)
=	-25.3

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:

Rent the Runway's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Jan. 2024 )
	=	-77	/	321.147
	=	-23.98 %

Rent the Runway EBIT Related Terms

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Rent the Runway (Rent the Runway) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Rent the Runway Inc (NAS:RENT) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

N/A

Address

10 Jay Street, Brooklyn, NY, USA, 11201

Website

https://www.renttherunway.com

Rent the Runway Inc is an e-commerce platform that allows users to rent, subscribe, or buy designer apparel and accessories.

Executives

Jennifer Hyman	director, 10 percent owner, officer: Chief Executive Officer	767 FIFTH AVENUE, C/O THE ESTEE LAUDER COMPANIES INC., NEW YORK NY 10153
Cara Schembri	officer: GC & Secretary	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Brian Donato	officer: Chief Supply Chain Officer	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Siddharth Thacker	officer: Chief Financial Officer	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Andrew Rau	officer: SVP, Supply Chain & Inventory	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Sarah K Tam	officer: Chief Merchant Officer	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Anushka Salinas	officer: President & COO	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Becky Case	officer: SVP, Engineering	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Larry Steinberg	officer: Chief Technology Officer	1000 WINDWARD CONCOURSE, SUITE 250, ALPHARETTA GA 30005
Emil Michael	director	C/O DPCM CAPITAL, INC., 382 NE 191 STREET, # 24148, MIAMI FL 33179
Scarlett O'sullivan	officer: Chief Financial Officer	225 WEST WASHINGTON STREET, INDIANAPOLIS IN 46204
Andrea Alexander	officer: Chief People Officer	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Carley Roney	director	C/O XO GROUP INC., 195 BROADWAY, 25TH FLOOR, NEW YORK NY 10007
Beth J Kaplan	director	1716 LOCUST STREET, DES MOINES IA 50309
Timothy E Bixby	director	C/O SHUTTERSTOCK, 350 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10118