Korn Ferry (Korn Ferry) Operating Income : $272 Mil (TTM As of Jan. 2024)

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What is Korn Ferry Operating Income?

Korn Ferry's Operating Income for the three months ended in Jan. 2024 was $54 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $272 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Korn Ferry's Operating Income for the three months ended in Jan. 2024 was $54 Mil. Korn Ferry's Revenue for the three months ended in Jan. 2024 was $677 Mil. Therefore, Korn Ferry's Operating Margin % for the quarter that ended in Jan. 2024 was 8.05%.

Good Sign:

Korn Ferry operating margin is expanding. Margin expansion is usually a good sign.

Korn Ferry's 5-Year average Growth Rate for Operating Margin % was 9.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Korn Ferry's annualized ROC % for the quarter that ended in Jan. 2024 was 9.37%. Korn Ferry's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 95.16%.

Korn Ferry Operating Income Historical Data

The historical data trend for Korn Ferry'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.

Korn Ferry Operating Income Chart

Korn Ferry Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Operating Income

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140.83

234.58

186.52

470.07

358.91

Korn Ferry Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Operating Income	Get a 7-Day Free Trial															53.68	73.99	57.19	86.34	54.48

Korn Ferry 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 Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $272 Mil.

Korn Ferry (NYSE:KFY) Operating Income Explanation

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

Korn Ferry's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	217.916 * ( 1 - 13.12% )	/	( (1992.631	+	2048.511)	/ 2 )
=	189.3254208	/	2020.571
=	9.37 %

where

	Invested Capital		(Q: Oct. 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	))
=	3360.961	-	721.345	-	( 646.985	-	max(0, 764.119	-	1421.54	+	646.985	))
=	1992.631

	Invested Capital		(Q: Jan. 2024 )
=	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	))
=	3556.325	-	805.746	-	( 782.524	-	max(0, 842.641	-	1544.709	+	782.524	))
=	2048.511

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

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

Korn Ferry's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jan. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Oct. 2023		Q: Jan. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	294.736	/	( ( (288.436 + max(-12.863, 0))	+	(331.041 + max(-106.581, 0)) )	/	2 )
=	294.736	/	( ( 288.436	+	331.041 )	/	2 )
=	294.736	/	309.7385
=	95.16 %

where Working Capital is:

	Working Capital		(Q: Oct. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(592.208	+	0	+	116.274)	-	(721.345	+	0	+	0)
=	-12.863

	Working Capital		(Q: Jan. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(589.717	+	0	+	109.448)	-	(805.746	+	0	+	0)
=	-106.581

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

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

Korn Ferry's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	54.479	/	676.873
	=	8.05 %

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.

Korn Ferry Operating Income Related Terms

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

Korn Ferry (Korn Ferry) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Korn Ferry (NYSE:KFY) » Definitions » Operating Income

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KFY:Germany

Address

1900 Avenue of the Stars, Suite 1500, Los Angeles, CA, USA, 90067

Website

https://www.kornferry.com

Korn Ferry is a United States-based firm engaged in organizational consulting and management recruitment that helps clients fill mid- to high-level management positions. The company's segment includes Consulting; Digital; Executive Search and RPO and Professional Search.

Executives

Matthew J Espe	director
Jeanne Macdonald	officer: CEO RPO	1900 AVENUE OF THE STARS, SUITE 1500, LOS ANGELES CA 90067
Charles L. Harrington	director	5875 TRINITY PKWY #300, CENTREVILLE VA 20120
Michael Distefano	officer: See Remarks	1900 AVENUE OF THE STARS, SUITE 1500, LOS ANGELES CA 90067
Gary D Burnison	director, officer: CEO	C/O KORN FERRY INTERNATIONAL, 800 CENTURY PARK EAST STE 900, LOS ANGELES CA 90067
Laura M Bishop	director	1900 AVENUE OF THE STARS, SUITE 1500, LOS ANGELES CA 90067
Robert P Rozek	officer: EVP and CFO	343 STATE STREET, ROCHESTER NY 146500211
Byrne K Mulrooney	officer: CEO of Futurestep	2050 SPECTRUM BOULEVARD, FT. LAUDERDALE FL 33309
Jerry Leamon	director	C/O KORN/FERRY INTERNATIONAL, 1900 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90067
George T Shaheen	director
Len J Lauer	director	2001 EDMUND HALLEY DRIVE, RESTON VA 20191
Lori Jean Robinson	director	5875 LANDERBROOK DRIVE, SUITE 220, CLEVELAND OH 44124
Mark Arian	officer: CEO of Hay Group	C/O KORN/FERRY INTERNATIONAL, 1900 AVE. OF THE STARS, SUITE 2600, LOS ANGELES CA 90067
Debra J Perry	director	515 RIDGEWOOD AVENUE, GLEN RIDGE NJ 07028
Angel R Martinez	director	C/O TUPPERWARE BRANDS CORP, PO BOX 2353, ORLANDO FL 32802-2353