Johnson Matthey (Johnson Matthey) Operating Income : $512 Mil (TTM As of Sep. 2023)

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What is Johnson Matthey Operating Income?

Johnson Matthey's Operating Income for the six months ended in Sep. 2023 was $220 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $512 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Johnson Matthey's Operating Income for the six months ended in Sep. 2023 was $220 Mil. Johnson Matthey's Revenue for the six months ended in Sep. 2023 was $8,083 Mil. Therefore, Johnson Matthey's Operating Margin % for the quarter that ended in Sep. 2023 was 2.73%.

Warning Sign:

Johnson Matthey PLC operating margin has been in a 5-year decline. The average rate of decline per year is -10.3%.

Johnson Matthey's 5-Year average Growth Rate for Operating Margin % was -10.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Johnson Matthey's annualized ROC % for the quarter that ended in Sep. 2023 was 7.00%. Johnson Matthey's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 14.29%.

Johnson Matthey Operating Income Historical Data

The historical data trend for Johnson Matthey'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.

Johnson Matthey Operating Income Chart

Johnson Matthey Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Operating Income

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737.81

650.99

643.55

720.69

558.25

Johnson Matthey Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Operating Income	Get a 7-Day Free Trial															403.85	333.33	249.15	291.26	220.30

Johnson Matthey 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 semi-annually data reported by the company within the most recent 12 months, which was $512 Mil.

Johnson Matthey (OTCPK:JMPLY) Operating Income Explanation

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

Johnson Matthey'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: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	440.594 * ( 1 - 23.17% )	/	( (5213.592	+	4461.633)	/ 2 )
=	338.5083702	/	4837.6125
=	7.00 %

where

	Invested Capital		(Q: Mar. 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	))
=	8530.34	-	2527.913	-	( 788.835	-	max(0, 3512.136	-	5300.971	+	788.835	))
=	5213.592

	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	))
=	8055.693	-	2912.129	-	( 681.931	-	max(0, 3163.366	-	4768.564	+	681.931	))
=	4461.633

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

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

Johnson Matthey'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: Mar. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	378.712	/	( ( (1675.971 + max(798.544, 0))	+	(1766.089 + max(1060.643, 0)) )	/	2 )
=	378.712	/	( ( 2474.515	+	2826.732 )	/	2 )
=	378.712	/	2650.6235
=	14.29 %

where Working Capital is:

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1582.524	+	2065.534	+	447.816)	-	(2527.913	+	0	+	769.417)
=	798.544

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2176.98	+	1877.475	+	32.178)	-	(2912.129	+	0	+	113.861)
=	1060.643

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

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

Johnson Matthey'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 )
	=	220.297	/	8082.921
	=	2.73 %

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.

Johnson Matthey Operating Income Related Terms

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Johnson Matthey (Johnson Matthey) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Johnson Matthey PLC (OTCPK:JMPLY) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

JMPLF:USA JMATl:UK JMAT:UK JMT2:Germany

Address

25 Farringdon Street, 5th Floor, London, GBR, EC4A 4AB

Website

https://www.matthey.com

Based in the U.K., Johnson Matthey is a global leader in production of emissions catalysts for automobiles and trucks. The company also manufactures industrial catalysts for the chemicals and oil and gas sectors, and a variety of other industrial products derived from platinum-group metals. The company is seeking to be a leader in hydrogen technologies.