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Sage Group (The) (Sage Group (The)) Operating Income : $493 Mil (TTM As of Sep. 2023)


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What is Sage Group (The) Operating Income?

Sage Group (The)'s Operating Income for the six months ended in Sep. 2023 was $249 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $493 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Sage Group (The)'s Operating Income for the six months ended in Sep. 2023 was $249 Mil. Sage Group (The)'s Revenue for the six months ended in Sep. 2023 was $1,358 Mil. Therefore, Sage Group (The)'s Operating Margin % for the quarter that ended in Sep. 2023 was 18.32%.

Warning Sign:

Sage Group (The) PLC operating margin has been in a 5-year decline. The average rate of decline per year is -6.4%.

Sage Group (The)'s 5-Year average Growth Rate for Operating Margin % was -6.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Sage Group (The)'s annualized ROC % for the quarter that ended in Sep. 2023 was 8.44%. Sage Group (The)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 294.34%.


Sage Group (The) Operating Income Historical Data

The historical data trend for Sage Group (The)'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.

Sage Group (The) Operating Income Chart

Sage Group (The) Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 516.09 489.64 449.18 377.12 497.53

Sage Group (The) 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 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 208.79 216.07 191.39 243.93 248.76

Sage Group (The) 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 $493 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.


Sage Group (The)  (OTCPK:SGGEF) Operating Income Explanation

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

Sage Group (The)'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 )
=497.524 * ( 1 - 22.38% )/( (4395.632 + 4758.663)/ 2 )
=386.1781288/4577.1475
=8.44 %

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))
=4605.583 - 406.553 - ( 697.816 - max(0, 1384.709 - 1188.107+697.816))
=4395.632

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))
=4871.287 - 200.495 - ( 861.386 - max(0, 1466.584 - 1378.713+861.386))
=4758.663

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:

Sage Group (The)'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 )
=410.892/( ( (150.485 + max(-875.001, 0)) + (128.713 + max(-946.781, 0)) )/ 2 )
=410.892/( ( 150.485 + 128.713 )/ 2 )
=410.892/139.599
=294.34 %

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)
=(445.388 + 0 + 44.903) - (406.553 + 0 + 958.739)
=-875.001

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(368.812 + 0 + 133.664) - (200.495 + 0 + 1248.762)
=-946.781

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 %:

Sage Group (The)'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 )
=248.762/1357.673
=18.32 %

* 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.


Sage Group (The) Operating Income Related Terms

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Sage Group (The) (Sage Group (The)) Business Description

Traded in Other Exchanges
Address
C23 - 5 & 6 Cobalt Park Way, Cobalt Park, Newcastle upon Tyne, GBR, NE28 9EJ
The Sage Group is a U.K.-based provider of accounting and enterprise resource planning, or ERP, software, predominantly to customers in the U.S. and Europe. The company was founded in 1981 and historically sold on-premises software products with perpetual software licenses. However, the company is transitioning toward cloud connected and cloud native products, sold via software-as-a-service, or SaaS, contracts. Sage's main cloud native products include Sage Accounting, for small businesses, and Sage Intacct, which Sage acquired in 2017, for midsize businesses.