T. Rowe Price Group (T. Rowe Price Group) Operating Income : $2,038 Mil (TTM As of Dec. 2023)

View and export this data going back to 1986. Start your Free Trial

What is T. Rowe Price Group Operating Income?

T. Rowe Price Group's Operating Income for the three months ended in Dec. 2023 was $419 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $2,038 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. T. Rowe Price Group's Operating Income for the three months ended in Dec. 2023 was $419 Mil. T. Rowe Price Group's Revenue for the three months ended in Dec. 2023 was $1,642 Mil. Therefore, T. Rowe Price Group's Operating Margin % for the quarter that ended in Dec. 2023 was 25.50%.

Warning Sign:

T. Rowe Price Group Inc operating margin has been in a 5-year decline. The average rate of decline per year is -5.1%.

T. Rowe Price Group's 5-Year average Growth Rate for Operating Margin % was -5.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. T. Rowe Price Group's annualized ROC % for the quarter that ended in Dec. 2023 was 12.72%. T. Rowe Price Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 122.07%.

T. Rowe Price Group Operating Income Historical Data

The historical data trend for T. Rowe Price Group'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.

T. Rowe Price Group Operating Income Chart

T. Rowe Price Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

Get a 7-Day Free Trial

2,387.00

2,745.70

3,710.00

2,496.00

2,038.00

T. Rowe Price Group 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															419.70	460.60	538.90	619.80	418.70

T. Rowe Price Group 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 $2,038 Mil.

T. Rowe Price Group (NAS:TROW) Operating Income Explanation

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

T. Rowe Price Group'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 )
=	1674.8 * ( 1 - 26.79% )	/	( (9540.5	+	9736.5)	/ 2 )
=	1226.12108	/	9638.5
=	12.72 %

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	))
=	12556.8	-	437.6	-	( 2578.7	-	max(0, 437.6	-	3330.7	+	2578.7	))
=	9540.5

	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	))
=	12278.8	-	475.7	-	( 2066.6	-	max(0, 475.7	-	2874.5	+	2066.6	))
=	9736.5

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

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

T. Rowe Price Group'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 )
=	1674.8	/	( ( (1049.6 + max(314.4, 0))	+	(1047.7 + max(332.2, 0)) )	/	2 )
=	1674.8	/	( ( 1364	+	1379.9 )	/	2 )
=	1674.8	/	1371.95
=	122.07 %

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)
=	(752	+	0	+	0)	-	(437.6	+	0	+	0)
=	314.4

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(807.9	+	0	+	0)	-	(475.7	+	0	+	0)
=	332.2

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 %:

T. Rowe Price Group'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 )
	=	418.7	/	1642
	=	25.50 %

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.

T. Rowe Price Group Operating Income Related Terms

Thank you for viewing the detailed overview of T. Rowe Price Group's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

T. Rowe Price Group (T. Rowe Price Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » T. Rowe Price Group Inc (NAS:TROW) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

1TROW:Italy TR1:Germany TR1:Germany TR1:Germany T1RO34:Brazil TROW:Austria

Address

100 East Pratt Street, Baltimore, MD, USA, 21202

Website

https://www.troweprice.com

T. Rowe Price provides asset-management services for individual and institutional investors. It offers a broad range of no-load U.S. and international stock, hybrid, bond, and money market funds. At the end of October 2023, the firm had $1.312 trillion in managed assets, composed of equity (51%), balanced (33%), fixed-income and money market (13%), and alternatives (3%) offerings. Approximately two thirds of the company's managed assets are held in retirement-based accounts, which provides T. Rowe Price with a somewhat stickier client base than most of its peers. The firm also manages private accounts, provides retirement planning advice, and offers discount brokerage and trust services. The company is primarily a U.S.-based asset manager, deriving just over 9% of its AUM from overseas.

Executives

Higginbotham Robert C.t.	officer: Vice President	100 E. PRATT STREET, BALTIMORE MD 21202
Thomson Andrew Justin Mackenzie	officer: Vice President	100 E. PRATT STREET, BALTIMORE MD 21202
William P Donnelly	director	C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Andrew C. Mccormick	officer: Vice President	100 E. PRATT STREET, BALTIMORE MD 21202
Cynthia F Smith	director	100 E. PRATT STREET, BALTIMORE MD 21202
Jessica M Hiebler	officer: Principal Accounting Officer	100 E. PRATT STREET, BALTIMORE MD 21202
William J Stromberg	officer: Vice President	100 E. PRATT STREET, BALTIMORE MD 21202
Kimberly H Johnson	officer: COO and VP	C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005
Joshua B Nelson	officer: Vice President	100 E. PRATT STREET, BALTIMORE MD 21202
Glenn R August	director, officer: Vice President	C/O OHA - 1114 AVENUE OF THE AMERICAS, 27TH FLOOR, NEW YORK NY 10036
Eileen P Rominger	director	100 E. PRATT STREET, BALTIMORE MD 21202
Sebastien Page	officer: Vice President	100 E. PRATT STREET, BALTIMORE MD 21202
Jennifer B Dardis	other: CFO and VP	100 E. PRATT STREET, BALTIMORE MD 21202
Mary K Bush	director	3509 WOODBINE STREET, CHEVY CHASE MD 20815
W. Sharps Robert	officer: Vice President	100 E. PRATT STREET, BALTIMORE MD 21202