China Evergrande Group (China Evergrande Group) Operating Income : $1,502 Mil (TTM As of Jun. 2023)

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What is China Evergrande Group Operating Income?

China Evergrande Group's Operating Income for the six months ended in Jun. 2023 was $100 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was $1,502 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. China Evergrande Group's Operating Income for the six months ended in Jun. 2023 was $100 Mil. China Evergrande Group's Revenue for the six months ended in Jun. 2023 was $17,899 Mil. Therefore, China Evergrande Group's Operating Margin % for the quarter that ended in Jun. 2023 was 0.56%.

China Evergrande Group'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. China Evergrande Group's annualized ROC % for the quarter that ended in Jun. 2023 was 0.11%. China Evergrande Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 was -52.71%.

China Evergrande Group Operating Income Historical Data

The historical data trend for China Evergrande 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.

China Evergrande Group Operating Income Chart

China Evergrande Group Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Operating Income

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19,357.76

12,090.91

9,851.05

-11,647.12

302.51

China Evergrande Group Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
Operating Income	Get a 7-Day Free Trial															-63.04	-11,583.53	-1,144.70	1,401.81	99.98

China Evergrande 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 Jun. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was $1,502 Mil.

China Evergrande Group (OTCPK:EGRNF) Operating Income Explanation

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

China Evergrande Group's annualized ROC % for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	199.96 * ( 1 - -21.09% )	/	( (212472.281	+	217371.046)	/ 2 )
=	242.131564	/	214921.6635
=	0.11 %

where

	Invested Capital		(Q: Dec. 2022 )
=	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	))
=	263685.758	-	149860.005	-	( 3222.313	-	max(0, 337496.306	-	238849.778	+	3222.313	))
=	212472.281

	Invested Capital		(Q: Jun. 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	))
=	243527.383	-	125732.119	-	( 1115.704	-	max(0, 319988.55	-	220412.768	+	1115.704	))
=	217371.046

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

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

China Evergrande Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2022		Q: Jun. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-5288.91	/	( ( (10233.085 + max(-17653.657, 0))	+	(9833.831 + max(-19377.776, 0)) )	/	2 )
=	-5288.91	/	( ( 10233.085	+	9833.831 )	/	2 )
=	-5288.91	/	10033.458
=	-52.71 %

where Working Capital is:

	Working Capital		(Q: Dec. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(32834.316	+	163032.833	+	39760.316)	-	(149860.005	+	0	+	103421.117)
=	-17653.657

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(31408.663	+	151769.766	+	36118.635)	-	(125732.119	+	0	+	112942.721)
=	-19377.776

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2023) EBIT data.

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

China Evergrande Group's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	99.98	/	17898.875
	=	0.56 %

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.

China Evergrande Group Operating Income Related Terms

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China Evergrande Group (China Evergrande Group) Business Description

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03333:Hong Kong EV1:Germany

Address

Number. 78 Huangpu Avenue West, Tianhe District, Guangdong Province, Guangzhou, CHN, 510620

Website

https://www.evergrande.com

China Evergrande Group is a large real estate developer. In 2019, it was ranked in third place by sales value among developers in China. It has projects in more than 200 cities across China and property development accounts for 90% of earnings. The firm also has interests in banking, insurance, tourism, and healthcare. Evergrande was listed in Hong Kong in late 2009. The company is in the process of spinning off its real estate business into a Shenzhen-listed entity. Free float is 25%, with the company's founder Hui Ka Yan holding the remaining share.