Finding Reported Operating Profit or EBIT
- 02:18
Learn how to find the reported operating profit or EBIT in a company's financial reports.
Transcript
To help us find reported operating profit or reported EBIT.
You could call it IE non cleaned.
What we'd be looking for is the income statement.
We're going to have a look at Logitech if we go into their financial statements, and we're gonna use their year end 'cause it's got a bit more detail.
We should find that they've got a contents page and when we scroll, here it is.
Then we're gonna go to their financial statements and we have to scroll around a little to get the actual contents page for the financial statements.
And then we're looking for the income statement.
You can see their operating income on this line here and their operating income is their non uncleaned or reported EBIT.
Let's do that again for Ubisoft, which is the IFRS gaming company.
If we go to their contents page, then what I'm looking for is the financial statements.
I've gotta be careful because they're presenting consolidated financial statements and separate financial statements.
It's more sensible to look at the consolidated because it'll capture the whole group.
If we click in, we then looking for the income statement and we can see operating loss.
Here, they're making a modest loss, and again, this will be their reported EBIT or reported operating profit non cleaned.
Now this, uh, financial statement is interesting and unusual in that they really spell out what the ordinary operating activities are, and this is like cleaned EBIT.
So the gaming studio is saying to you, there's 50 of loss, which we don't believe will happen.
Again, that other or non-recurring or non-core, they should be cleaned out.
And so, although on a reported basis we're making an 82 loss or 83 ish, we would like you the analyst to consider us more like a 30 loss because there's 50 of unusual stuff which we'd like you to clean out.
This is like the gaming studio saying, here's our cleaned EBIT and here's our non cleaned or reported EBIT.