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RLJ Lodging Trust (RLJ Lodging Trust) Operating Income : $153 Mil (TTM As of Dec. 2023)


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What is RLJ Lodging Trust Operating Income?

RLJ Lodging Trust's Operating Income for the three months ended in Dec. 2023 was $27 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $153 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. RLJ Lodging Trust's Operating Income for the three months ended in Dec. 2023 was $27 Mil. RLJ Lodging Trust's Revenue for the three months ended in Dec. 2023 was $320 Mil. Therefore, RLJ Lodging Trust's Operating Margin % for the quarter that ended in Dec. 2023 was 8.46%.

RLJ Lodging Trust's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. RLJ Lodging Trust's annualized ROC % for the quarter that ended in Dec. 2023 was 2.46%. RLJ Lodging Trust's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 80.29%.


RLJ Lodging Trust Operating Income Historical Data

The historical data trend for RLJ Lodging Trust'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.

RLJ Lodging Trust Operating Income Chart

RLJ Lodging Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 232.86 -257.25 -50.02 121.05 152.58

RLJ Lodging Trust Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Income 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 25.80 30.21 60.87 34.46 27.04

RLJ Lodging Trust 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 Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $153 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.


RLJ Lodging Trust  (NYSE:RLJ) Operating Income Explanation

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

RLJ Lodging Trust's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=108.176 * ( 1 - 2.76% )/( (4287.205 + 4279.754)/ 2 )
=105.1903424/4283.4795
=2.46 %

where

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))
=4940.342 - 185.691 - ( 494.563 - max(0, 185.691 - 653.137+494.563))
=4287.205

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))
=4919.295 - 192.858 - ( 516.675 - max(0, 192.858 - 639.541+516.675))
=4279.754

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

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

RLJ Lodging Trust's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=109.876/( ( (137.546 + max(-27.117, 0)) + (136.14 + max(-69.992, 0)) )/ 2 )
=109.876/( ( 137.546 + 136.14 )/ 2 )
=109.876/136.843
=80.29 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(47.99 + 0 + 110.584) - (185.691 + 0 + 0)
=-27.117

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(26.163 + 0 + 96.703) - (192.858 + 0 + 0)
=-69.992

When net working capital is negative, 0 is used.

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

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

RLJ Lodging Trust's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=27.044/319.708
=8.46 %

* 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.

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.


RLJ Lodging Trust Operating Income Related Terms

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RLJ Lodging Trust (RLJ Lodging Trust) Business Description

Traded in Other Exchanges
Address
3 Bethesda Metro Center, Suite 1000, Bethesda, MD, USA, 20814
RLJ Lodging Trust is a real estate investment trust that acquires focused-service and compact full-service hotels. Its portfolio consists of hotels in various states across the United States and the District of Columbia. Its hotels are under the Marriott, Hilton, and Hyatt brand names. These hotels are concentrated in urban areas, dense suburban markets, and business districts within metropolitan areas where utmost of their customers are business, leisure, and other travelers. Its revenue streams include hotel operations revenue, which is composed of the sale of rooms, food, and beverages, and other property revenue. The company derives the substantial majority of its revenue from the operation of hotels.
Executives
Arthur Reginald Collins director 3911 LORCOM LANE, ARLINGTON VA 22207
Nathaniel A Davis director 1500 ECKINGTON PLACE NE, WASHINGTON DC 20002
Chad Perry officer: EVP and General Counsel C/O TANGER FACTORY OUTLET CENTERS, INC., 3200 NORTHLINE AVENUE, SUITE 360, GREENSBORO NC 27408
Patricia L Gibson director 545 E JOHN CARPENTER FREEWAY, SUITE 1300, IRVING TX 75062
Thomas Bardenett officer: EVP and COO C/O EXTENDED STAY AMERICA, INC., 11525 N. COMMUNITY HOUSE ROAD, SUITE 100, CHARLOTTE NC 28277
La Forgia Robert M director C/O HILTON HOTELS CORP, 9336 CIVIC CENTER DRIVE, BEVERLY HILLS CA 90210
Robert Mccarthy director C/O SANTANDER CONSUMER USA HOLDINGS INC, 1601 ELM STREET, SUITE 800, DALLAS TX 75201
Evan Bayh director 3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814
Robin Mcbride Zeigler director 44 SOUTH BAYLES AVENUE, PORT WASHINGTON NY 11050
Sean M Mahoney officer: EVP, CFO and Treasurer 3 BETHESDA METRO CTR #1000, BETHESDA MD 20814
Robert L Johnson director, officer: Executive Chairman C/O RLJ COMPANIES, 3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814
Leslie D. Hale director, officer: President and CEO 3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814
Christopher Andrew Gormsen officer: Chief Accounting Officer C/O RLJ LODGING TRUST, 3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814
Joseph J Ryan director C/O RLJ LODGING TRUST, 3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20817
California Public Employees Retirement System 10 percent owner 400 Q ST, SUITE 4800, SACRAMENTO CA 95811