Guoco Group (Guoco Group) Operating Income : $403 Mil (TTM As of Dec. 2023)

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What is Guoco Group Operating Income?

Guoco Group's Operating Income for the six months ended in Dec. 2023 was $297 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $403 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Guoco Group's Operating Income for the six months ended in Dec. 2023 was $297 Mil. Guoco Group's Revenue for the six months ended in Dec. 2023 was $1,587 Mil. Therefore, Guoco Group's Operating Margin % for the quarter that ended in Dec. 2023 was 18.74%.

Warning Sign:

Guoco Group Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -18.1%.

Guoco Group's 5-Year average Growth Rate for Operating Margin % was -18.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Guoco Group's annualized ROC % for the quarter that ended in Dec. 2023 was 3.90%. Guoco Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 17.39%.

Guoco Group Operating Income Historical Data

The historical data trend for Guoco 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.

Guoco Group Operating Income Chart

Guoco Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Operating Income

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401.91

212.93

28.96

284.44

213.16

Guoco Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial															234.14	51.77	107.86	105.95	297.42

Guoco 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 semi-annually data reported by the company within the most recent 12 months, which was $403 Mil.

Guoco Group (OTCPK:GULRY) Operating Income Explanation

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

Guoco 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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	594.838 * ( 1 - 10.59% )	/	( (13395.184	+	13879.073)	/ 2 )
=	531.8446558	/	13637.1285
=	3.90 %

where

	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	))
=	16937.697	-	672.097	-	( 2870.416	-	max(0, 1994.114	-	6093.699	+	2870.416	))
=	13395.184

	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	))
=	17584.182	-	720.694	-	( 2984.415	-	max(0, 3132.113	-	6419.252	+	2984.415	))
=	13879.073

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

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

Guoco 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: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	735.562	/	( ( (2238.671 + max(2178.89, 0))	+	(2258.633 + max(1783.685, 0)) )	/	2 )
=	735.562	/	( ( 4417.561	+	4042.318 )	/	2 )
=	735.562	/	4229.9395
=	17.39 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(94.853	+	2824.979	+	162.984)	-	(672.097	+	0	+	231.829)
=	2178.89

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(109.251	+	2571.922	+	11.879000000001)	-	(720.694	+	0	+	188.673)
=	1783.685

When net working capital is negative, 0 is used.

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

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

Guoco 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 )
	=	297.419	/	1587.099
	=	18.74 %

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.

Guoco Group Operating Income Related Terms

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Guoco Group (Guoco Group) Business Description

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GULRF:USA 00053:Hong Kong

Address

99 Queen's Road Central, 50th Floor, The Center, Hong Kong, HKG

Website

https://www.guoco.com

Guoco Group Ltd is a holdings company engaged in investment and financial businesses globally. The company operates in four main segments: principal investment, property development and investment, hospitality and leisure, and financial services. It generates additional revenue from oil and gas production. Principal investment segment covers direct and equity investments, and treasury operations. The property development and investment segment, develops residential and commercial properties in China and Southeast Asia. The main revenue driver, hospitality and leisure segment owns, leases, and manages hotels, and operates gaming businesses in the UK, Spain and Belgium. The financial-services segment includes commercial, consumer and investment banking, as well as insurance services.