Telefonica Brasil (Telefonica Brasil) Operating Income : $1,411 Mil (TTM As of Dec. 2023)

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What is Telefonica Brasil Operating Income?

Telefonica Brasil's Operating Income for the three months ended in Dec. 2023 was $493 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $1,411 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Telefonica Brasil's Operating Income for the three months ended in Dec. 2023 was $493 Mil. Telefonica Brasil's Revenue for the three months ended in Dec. 2023 was $2,762 Mil. Therefore, Telefonica Brasil's Operating Margin % for the quarter that ended in Dec. 2023 was 17.86%.

Warning Sign:

Telefonica Brasil SA operating margin has been in a 5-year decline. The average rate of decline per year is -3.3%.

Telefonica Brasil's 5-Year average Growth Rate for Operating Margin % was -3.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Telefonica Brasil's annualized ROC % for the quarter that ended in Dec. 2023 was 8.81%. Telefonica Brasil's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 15.46%.

Telefonica Brasil Operating Income Historical Data

The historical data trend for Telefonica Brasil'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.

Telefonica Brasil Operating Income Chart

Telefonica Brasil Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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1,616.60

1,139.66

1,255.75

1,342.76

1,736.15

Telefonica Brasil Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															331.88	405.94	465.10	452.32	493.27

Telefonica Brasil 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 $1,411 Mil.

Telefonica Brasil (NYSE:VIV) Operating Income Explanation

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

Telefonica Brasil'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 )
=	1973.06 * ( 1 - 0.79% )	/	( (22071.122	+	22358.127)	/ 2 )
=	1957.472826	/	22214.6245
=	8.81 %

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	))
=	24296.105	-	2557.554	-	( 922.638	-	max(0, 4260.99	-	3928.419	+	922.638	))
=	22071.122

	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	))
=	24641.41	-	2454.559	-	( 889.715	-	max(0, 4098.98	-	3927.704	+	889.715	))
=	22358.127

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

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

Telefonica Brasil'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 )
=	1442.196	/	( ( (9208.599 + max(-838.673, 0))	+	(9453.069 + max(-696.64, 0)) )	/	2 )
=	1442.196	/	( ( 9208.599	+	9453.069 )	/	2 )
=	1442.196	/	9330.834
=	15.46 %

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)
=	(1837.828	+	179.876	+	518.215)	-	(2557.554	+	185.916	+	631.122)
=	-838.673

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1901.726	+	167.928	+	419.249)	-	(2454.559	+	195.942	+	535.042)
=	-696.64

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 %:

Telefonica Brasil'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 )
	=	493.265	/	2762.302
	=	17.86 %

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.

Telefonica Brasil Operating Income Related Terms

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Telefonica Brasil (Telefonica Brasil) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Telefonica Brasil SA (NYSE:VIV) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

TSPA:Germany VIVT3:Brazil VIV:Argentina

Address

Avenida Engenheiro Luis Carlos Berrini, 1376, 32nd Floor, Sao Paulo, SP, BRA, 04571-936

Website

https://www.telefonica.com.br

Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with 98 million customers, equal to about 40% market share. The firm is strongest in the postpaid business, where it has 60 million customers, about 42% share of this market. It is the incumbent fixed-line telephone operator in Sao Paulo state and, following the acquisition of GVT, the owner of an extensive fiber network across the country. The firm provides internet access to 6 million households on this network. Following its parent Telefonica's footsteps, Vivo is cross-selling fixed-line and wireless services as a converged offering. The firm also sells pay-tv services to its fixed-line customers.