Black Knight (Black Knight) Operating Income : $265 Mil (TTM As of Sep. 2023)

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What is Black Knight Operating Income?

Black Knight's Operating Income for the three months ended in Sep. 2023 was $62 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $265 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Black Knight's Operating Income for the three months ended in Sep. 2023 was $62 Mil. Black Knight's Revenue for the three months ended in Sep. 2023 was $275 Mil. Therefore, Black Knight's Operating Margin % for the quarter that ended in Sep. 2023 was 22.55%.

Warning Sign:

Black Knight Inc operating margin has been in a 5-year decline. The average rate of decline per year is -5%.

Black Knight's 5-Year average Growth Rate for Operating Margin % was -5.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Black Knight's annualized ROC % for the quarter that ended in Sep. 2023 was 4.58%. Black Knight's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was -100.87%.

Black Knight Operating Income Historical Data

The historical data trend for Black Knight's Operating Income 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.

Black Knight Operating Income Chart

Black Knight Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Operating Income

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271.60

295.00

298.20

316.30

310.00

Black Knight Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Operating Income	Get a 7-Day Free Trial															83.40	44.10	86.50	72.50	62.00

Black Knight Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $265 Mil.

Black Knight (NYSE:BKI) Operating Income Explanation

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

Black Knight's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	248 * ( 1 - 9.33% )	/	( (5668.6	+	4147)	/ 2 )
=	224.8616	/	4907.8
=	4.58 %

where

	Invested Capital		(Q: Jun. 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	))
=	5768.5	-	84	-	( 15.9	-	max(0, 257.3	-	369	+	15.9	))
=	5668.6

	Invested Capital		(Q: Sep. 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	))
=	4323.7	-	82.6	-	( 94.1	-	max(0, 237.8	-	720.7	+	94.1	))
=	4147

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

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

Black Knight's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-372.4	/	( ( (150.5 + max(53.8, 0))	+	(139.5 + max(394.6, 0)) )	/	2 )
=	-372.4	/	( ( 204.3	+	534.1 )	/	2 )
=	-372.4	/	369.2
=	-100.87 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(159.8	+	0	+	99.2)	-	(84	+	50.3	+	70.9)
=	53.8

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(127.8	+	0	+	498.8)	-	(82.6	+	0	+	149.4)
=	394.6

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Black Knight's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	62	/	275
	=	22.55 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Black Knight Operating Income Related Terms

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

Black Knight (Black Knight) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Black Knight Inc (NYSE:BKI) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

601 Riverside Avenue, Jacksonville, FL, USA, 32204

Website

https://www.blackknightinc.com

Black Knight Inc is a technology company that, through its subsidiaries, provides software, data, and analytics solutions to the mortgage and consumer loan, real estate, and capital markets industry. The company's product portfolio includes software solutions to support loan origination, processing and servicing, and data and analytics solutions such as automated valuation models, data integration, risk assessment, among others. Black Knight's business is organized in two segments: software solutions and data/analytics. The majority of revenue comes from the company's software solutions segment, and most of the company's revenue is earned in the United States.

Executives

Joseph M Otting	director	C/O CIT GROUP INC., 1 CIT DRIVE, #3251-9, LIVINGSTON NJ 07039
Anthony M Jabbour	officer: Chief Executive Officer	601 RIVERSIDE AVE, JACKSONVILLE FL 32204
Michele M Meyers	officer: Chief Accounting Officer	601 RIVERSIDE AVENUE, JACKSONVILLE FL 32207
John D Rood	director	3020 HARTLEY ROAD SUITE 300, JACKSONVILLE FL 32257
Catherine Levinson Burke	director	C/O NCR CORPORATION, 864 SPRING STREET NW, ATLANTA GA 30308
Michael L Gravelle	officer: Corp. Secretary & General Coun	601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Kirk T Larsen	officer: Chief Financial Officer	601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Foley William P Ii	director, officer: Chairman	FIDELITY NATIONAL FINANCIAL, INC., 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Richard N Massey	director	900 S. SHACKLEFORD ROAD, SUITE 401, LITTLE ROCK AR 72211
Nancy L. Shanik	director	CITIZENS FINANCIAL GROUP, INC., 600 WASHINGTON BLVD., CS119N, STAMFORD CT 06901
Shelley S Leonard	officer: Chief Product & Digital Ofcr	601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Joseph M Nackashi	officer: President	LENDER PROCESSING SERVICES, INC., 601 RIVERSIDE AVE., JACKSONVILLE FL 32204
Anthony Orefice	officer: Chief Operating Officer	C/O BLACK KNIGHT FINANCIAL SERVICES, INC, 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Thomas J. Sanzone	officer: Chief Executive Officer	BLACK KNIGHT FINANCIAL SERVICES, INC., 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Thl Equity Fund Vi Investors (bkfs-lm), Llc	10 percent owner	C/O THOMAS H. LEE PARNTERS, L.P., 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110