Amcon Distributing Co (Amcon Distributing Co) Operating Income

: $22 Mil (TTM As of Mar. 2024)

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Amcon Distributing Co's Operating Income for the three months ended in Mar. 2024 was $3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $22 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Amcon Distributing Co's Operating Income for the three months ended in Mar. 2024 was $3 Mil. Amcon Distributing Co's Revenue for the three months ended in Mar. 2024 was $602 Mil. Therefore, Amcon Distributing Co's Operating Margin % for the quarter that ended in Mar. 2024 was 0.56%.

Good Sign:

Amcon Distributing Co operating margin is expanding. Margin expansion is usually a good sign.

Amcon Distributing Co's 5-Year average Growth Rate for Operating Margin % was 14.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Amcon Distributing Co's annualized ROC % for the quarter that ended in Mar. 2024 was 2.24%. Amcon Distributing Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 5.13%.

Amcon Distributing Co Operating Income Historical Data

The historical data trend for Amcon Distributing Co'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.

Amcon Distributing Co Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

9.22

9.57

17.83

22.60

25.97

Amcon Distributing Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income																5.33	7.91	7.21	3.82	3.34

Amcon Distributing Co 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 Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $22 Mil.

Amcon Distributing Co (AMEX:DIT) Operating Income Explanation

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

Amcon Distributing Co'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 )
=	13.376 * ( 1 - 53.17% )	/	( (296.611	+	263.633)	/ 2 )
=	6.2639808	/	280.122
=	2.24 %

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	))
=	362.373	-	64.765	-	( 0.997	-	max(0, 72.757	-	243.431	+	0.997	))
=	296.611

	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	))
=	336.157	-	71.572	-	( 0.952	-	max(0, 82.088	-	205.246	+	0.952	))
=	263.633

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

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

Amcon Distributing Co'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 )
=	13.6	/	( ( (105.076 + max(176.151, 0))	+	(117.306 + max(131.877, 0)) )	/	2 )
=	13.6	/	( ( 281.227	+	249.183 )	/	2 )
=	13.6	/	265.205
=	5.13 %

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)
=	(68.823	+	158.167	+	13.926)	-	(64.765	+	0	+	0)
=	176.151

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(66.881	+	121.324	+	15.244)	-	(71.572	+	0	+	-1.4210854715202E-14)
=	131.877

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. Operating Income is also linked to Operating Margin %:

Amcon Distributing Co's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	3.344	/	601.877
	=	0.56 %

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.

Amcon Distributing Co Operating Income Related Terms

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Amcon Distributing Co (Amcon Distributing Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Amcon Distributing Co (AMEX:DIT) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

7405 Irvington Road, Omaha, NE, USA, 68122

Website

https://www.amcon.com

Amcon Distributing Co is engaged in the wholesale and retail distribution of consumer products such as cigarettes, tobacco, confectionery, health food, and others. It operates in two segments: Wholesale distribution segment distributing consumer products to the retail outlets including convenience stores, grocery stores, liquor stores, drug stores, and tobacco shops in the Central, Rocky Mountain, and Southern regions of the United States; and the Retail health food segment is a specialty retailer of natural/organic groceries and dietary supplements throughout the Midwest and Florida. The company earns a majority of the revenue from the Wholesale distribution segment.

Executives

Kathleen M Evans	director, officer: President	15701 NORTH 47TH ST, OMAHA NE 68152
Charles J. Schmaderer	officer: VP,Controller,Secretary	7405 IRVINGTON ROAD, OMAHA NE 68122
Jeremy W Hobbs	director	444 NORTH MICHIGAN AVE, STE 2050, CHICAGO IL 60611
John R Loyack	director	ALVARADO SQUARE MS 2818, ALBUQUERQUE NM 87158
William F Wright	director, 10 percent owner, officer: Chairman	1431 STRATFORD CT, DEL MAR CA 92014
Timothy R Pestotnik	director	600 W BROADWAY, STE 2600, SAN DIEGO CA 92101
Stanley Mayer	director
Christopher H Atayan	director, officer: CEO and Vice Chairman	C/O SLUSSER ASSOCIATES, INC., 153 EAST 53RD STREET, NEW YORK NY 10022
Andrew Charles Plummer	officer: Chief Financial Officer	18325 JEFFERSON ST, OMAHA NE 68135
Eric J Hinkefent	officer: President of CNF and HFA	ROUTE 5, BOX 445, COWETA OK 74429
Raymond F Bentele	director	C/O MALLINCKRODT GROUP INC, 7733 FORSYTH BLVD, ST LOUIS MO 63105
Philip E Campbell	officer: SVP - Planning and Compliance	1302 ELMSHADE COVE, ROUND ROCK TX 78664
Draupnir Llc	10 percent owner	500 N DEARBORN, 2ND FL, CHICAGO IL 60610
Allen D Petersen	director, 10 percent owner	122 WEST COUNTY LINE ROAD, BARRINGTON HILLS IL 60010
Dawson Foundation Alexander	10 percent owner	4045 SOUTH SPENCER STREEET, SUITE 312, LAS VEGAS NV 89119