The Hackett Group (The Hackett Group) Operating Income : $50.4 Mil (TTM As of Dec. 2023)

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What is The Hackett Group Operating Income?

The Hackett Group's Operating Income for the three months ended in Dec. 2023 was $12.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $50.4 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. The Hackett Group's Operating Income for the three months ended in Dec. 2023 was $12.7 Mil. The Hackett Group's Revenue for the three months ended in Dec. 2023 was $72.4 Mil. Therefore, The Hackett Group's Operating Margin % for the quarter that ended in Dec. 2023 was 17.48%.

Good Sign:

The Hackett Group Inc operating margin is expanding. Margin expansion is usually a good sign.

The Hackett Group's 5-Year average Growth Rate for Operating Margin % was 10.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. The Hackett Group's annualized ROC % for the quarter that ended in Dec. 2023 was 26.08%. The Hackett Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 199.26%.

The Hackett Group Operating Income Historical Data

The historical data trend for The Hackett 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.

The Hackett Group Operating Income Chart

The Hackett Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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34.72

19.13

46.48

54.60

50.44

The Hackett 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															13.62	11.25	12.79	13.74	12.66

The Hackett 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 $50.4 Mil.

The Hackett Group (NAS:HCKT) Operating Income Explanation

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

The Hackett 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 )
=	50.62 * ( 1 - 27.56% )	/	( (147.862	+	133.323)	/ 2 )
=	36.669128	/	140.5925
=	26.08 %

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	))
=	180.847	-	23.106	-	( 9.879	-	max(0, 46.971	-	75.26	+	9.879	))
=	147.862

	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	))
=	181.428	-	27.148	-	( 20.957	-	max(0, 49.888	-	75.438	+	20.957	))
=	133.323

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

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

The Hackett 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 )
=	45.908	/	( ( (21.642 + max(2.974, 0))	+	(21.463 + max(-10.797, 0)) )	/	2 )
=	45.908	/	( ( 24.616	+	21.463 )	/	2 )
=	45.908	/	23.0395
=	199.26 %

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)
=	(45.443	+	0	+	3.174)	-	(23.106	+	12.869	+	9.668)
=	2.974

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(35.64	+	0	+	2.368)	-	(27.148	+	12.087	+	9.57)
=	-10.797

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 %:

The Hackett 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 )
	=	12.655	/	72.403
	=	17.48 %

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.

The Hackett Group Operating Income Related Terms

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

The Hackett Group (The Hackett Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » The Hackett Group Inc (NAS:HCKT) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

AWT:Germany

Address

1001 Brickell Bay Drive, Suite 3000, 30th Floor, Miami, FL, USA, 33131

Website

https://www.thehackettgroup.com

The Hackett Group Inc is an advisory firm. The company's offerings include executive advisory programs, benchmarking, executive advisory, business transformation, and cloud enterprise application implementation. The company's executive and practices advisory programs offer performance metrics, peer-learning opportunities, and practice implementation practices. Benchmarking services help organizations measure and assess internal efficiency and effectiveness. The business transformation programs help customers develop strategies to improve performance. The company's technology advisory services help clients improve decision-making capabilities and deploy software applications. The Hackett Group generates the majority of its revenue in the United States.

Executives

Wix Alan T G	director
Bofill Maria De Los Angeles	director	15550 SW 54 STREET, MIAMI FL 33185-4144
Robert A Rivero	director	1001 BRICKELL BAY DRIVE, SUITE 3000, MIAMI FL 33131
Richard N Hamlin	director	1001 BRICKELL BAY DRIVE, STE 3000, MIAMI FL 33131
John R Harris	director	2201 CEDEAR SPRINGS RD, SUITE 701, DALLAS TX 75201
Ted A Fernandez	director, officer: Chairman and CEO
Roberto A Ramirez,	officer: Chief Financial Officer	ANSWERTHINK, INC., 1001 BRICKELL DRIVE, SUITE 3000, MIAMI FL 33131
David N Dungan	director, officer: Vice Chairman and COO
Edwin A Huston	director	UNISYS CORP, UNISYS WAY, BLUE BELL PA 19424-0001
Terence M Graunke	director, 10 percent owner	676 N. MICHIGAN AVENUE, SUITE 3900, CHICAGO IL 60611
Paul G Yovovich	10 percent owner	676 NORTH MICHIGAN AVENUE, SUITE 3900, CHICAGO IL 60611
Lake Capital Partners Lp	10 percent owner	676 N. MICHIGAN AVENUE, SUITE 3900, CHICAGO IL 60611
Archstone Holdings Llc	10 percent owner
Lake Capital Investment Partners Lp	10 percent owner	676 N. MICHIGAN AVENUE, SUITE 3900, CHICAGO IL 60611
Archstone Intermediate Holdings Llc	10 percent owner	676 North Michigan Avenue, Suite 3900, Chicago IL 60611