United Therapeutics (United Therapeutics) Operating Income : $1,185 Mil (TTM As of Dec. 2023)

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What is United Therapeutics Operating Income?

United Therapeutics's Operating Income for the three months ended in Dec. 2023 was $260 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $1,185 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. United Therapeutics's Operating Income for the three months ended in Dec. 2023 was $260 Mil. United Therapeutics's Revenue for the three months ended in Dec. 2023 was $615 Mil. Therefore, United Therapeutics's Operating Margin % for the quarter that ended in Dec. 2023 was 42.31%.

United Therapeutics'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. United Therapeutics's annualized ROC % for the quarter that ended in Dec. 2023 was 18.88%. United Therapeutics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 106.64%.

United Therapeutics Operating Income Historical Data

The historical data trend for United Therapeutics'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.

United Therapeutics Operating Income Chart

United Therapeutics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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-187.60

593.60

555.90

979.70

1,184.90

United Therapeutics 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															175.60	284.40	313.40	327.00	260.10

United Therapeutics 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 $1,185 Mil.

United Therapeutics (NAS:UTHR) Operating Income Explanation

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

United Therapeutics'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 )
=	1040.4 * ( 1 - 26.51% )	/	( (3975.4	+	4122.4)	/ 2 )
=	764.58996	/	4048.9
=	18.88 %

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	))
=	7023.6	-	333.4	-	( 2875.5	-	max(0, 744.1	-	3458.9	+	2875.5	))
=	3975.4

	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	))
=	7167	-	298	-	( 2994.1	-	max(0, 804.4	-	3551	+	2994.1	))
=	4122.4

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

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

United Therapeutics'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 )
=	1242	/	( ( (992.2 + max(139.3, 0))	+	(1045.4 + max(152.5, 0)) )	/	2 )
=	1242	/	( ( 1131.5	+	1197.9 )	/	2 )
=	1242	/	1164.7
=	106.64 %

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)
=	(258.6	+	104.3	+	220.5)	-	(333.4	+	0	+	110.7)
=	139.3

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(278.9	+	111.8	+	166.2)	-	(298	+	0	+	106.4)
=	152.5

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 %:

United Therapeutics'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 )
	=	260.1	/	614.7
	=	42.31 %

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.

United Therapeutics Operating Income Related Terms

Thank you for viewing the detailed overview of United Therapeutics's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

United Therapeutics (United Therapeutics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » United Therapeutics Corp (NAS:UTHR) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

UTH:Germany

Address

1040 Spring Street, Silver Spring, MD, USA, 20910

Website

https://www.unither.com

United Therapeutics specializes in drug development for pulmonary arterial hypertension, a rare and progressive disease marked by abnormally high blood pressure in the arteries of the lungs. The company's therapies for PAH largely focus on the prostacyclin pathway, and many of its treatments are based on the same molecule, treprostinil. Most of the company's sales are generated within the United States. United Therapeutics also markets a pediatric oncology drug, but its focus largely remains in pulmonary arterial hypertension.

Executives

Paul A Mahon	officer: EVP & General Counsel
Nilda Mesa	director	C/O UNITED THERAPEUTICS CORPORATION, 1040 SPRING STREET, SILVER SPRING MD 20910
Christopher Causey	director
Martine A Rothblatt	director, officer: Chief Executive Officer
Louis W Sullivan	director
Judy D. Olian	director	2000 AVENUE OF THE STARS 12TH FL, LOS ANGELES CA 90067
Michael Benkowitz	officer: President and COO	C/O UNITED THERAPEUTICS CORP, 1040 SPRING STREET, SILVER SPRING MD 20910
Christopher Patusky	director
Raymond Dwek	director
Linda Maxwell	director	1040 SPRING STREET, SILVER SPRING NC 27709
Tommy G Thompson	director	7711 CARONDELET, ST. LOUIS MO 63105
Katherine J Klein	director	STEINBERG HALL-DIETRICH HALL, 3620 LOCUST WALK, PHILADELPHIA PA 19104
Richard Giltner	director	C/O UNITED THERAPEUTICS CORPORTION, 1735 CONNECTICUT AVE. NW, WASHINGTON DC 20009
Roger Jeffs	director, officer: President and COO
David Zaccardelli	officer: EVP & Chief Operating Officer	300 TRI STATE INTERNATIONAL, SUITE 272, LINCOLNSHIRE IL 60069