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Hydro One (TSX:H) EBIT : C$1,857 Mil (TTM As of Mar. 2024)


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What is Hydro One EBIT?

Hydro One's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2024 was C$503 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2024 was C$1,857 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Hydro One's annualized ROC % for the quarter that ended in Mar. 2024 was 5.45%. Hydro One's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 7.42%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Hydro One's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 4.58%.

Hydro One EBIT Historical Data

The historical data trend for Hydro One'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.

Hydro One EBIT Chart

Hydro One Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,253.00 1,470.00 1,602.00 1,832.00 1,842.00

Hydro One 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 487.00 473.00 538.00 343.00 503.00

Competitive Comparison of Hydro One's EBIT

For the Utilities - Regulated Electric subindustry, Hydro One'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.

Hydro One's EV-to-EBIT Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Hydro One's EV-to-EBIT distribution charts can be found below:

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


Hydro One 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 C$1,857 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.

Hydro One  (TSX:H) EBIT Explanation

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

Hydro One'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 )
=2116 * ( 1 - 14.74% )/( (32477 + 33770)/ 2 )
=1804.1016/33123.5
=5.45 %

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))
=32852 - 1741 - ( 79 - max(0, 2720 - 1354+79))
=32477

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))
=34107 - 1553 - ( 686 - max(0, 3253 - 2037+686))
=33770

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

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

Hydro One'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 )
=2012/( ( (26874 + max(-779, 0)) + (27389 + max(-1019, 0)) )/ 2 )
=2012/( ( 26874 + 27389 )/ 2 )
=2012/27131.5
=7.42 %

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)
=(830 + 35 + 97) - (1741 + 0 + 0)
=-779

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(479 + 34 + 110) - (1553 + 0 + 89)
=-1019

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:

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2024 )
=1857/40548.533
=4.58 %

* 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.

Hydro One EBIT Related Terms

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Hydro One (TSX:H) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Hydro One Ltd (TSX:H) » Definitions » EBIT
Comparable Companies
TSX:FTS TSX:EMA TSX:CUP.U NEE SO DUK LSE:NG. PCG AEP EXC D XEL ED PEG BOM:532555 WEC EIX BOM:532898 FE XMAD:ELE
Traded in Other Exchanges
HRNNF:USA 8H1:Germany
Address
483 Bay Street, South Tower, 8th Floor, Toronto, ON, CAN, M5G 2P5
Website
https://www.hydroone.com
Hydro One operates regulated transmission and distribution assets in Ontario. The area's largest electricity provider serves nearly 1.5 million customers. Transmission accounts for roughly 60% of the company's rate base, with distribution accounting for the remainder. Hydro One operates a small telecom business with annual revenue contributing less than 1% to consolidated results. The province of Ontario holds an approximate 47% common equity stake.
Executives
Darlene Ann Bradley Senior Officer