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KSB SE KGaA (KSB SE KGaA) Operating Income : $221 Mil (TTM As of Dec. 2023)


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What is KSB SE KGaA Operating Income?

KSB SE KGaA's Operating Income for the six months ended in Dec. 2023 was $114 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $221 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. KSB SE KGaA's Operating Income for the six months ended in Dec. 2023 was $114 Mil. KSB SE KGaA's Revenue for the six months ended in Dec. 2023 was $1,562 Mil. Therefore, KSB SE KGaA's Operating Margin % for the quarter that ended in Dec. 2023 was 7.29%.

Good Sign:

KSB SE & Co KGaA operating margin is expanding. Margin expansion is usually a good sign.

KSB SE KGaA's 5-Year average Growth Rate for Operating Margin % was 21.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. KSB SE KGaA's annualized ROC % for the quarter that ended in Dec. 2023 was 10.71%. KSB SE KGaA's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 20.30%.


KSB SE KGaA Operating Income Historical Data

The historical data trend for KSB SE KGaA'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.

KSB SE KGaA Operating Income Chart

KSB SE KGaA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 102.58 73.38 155.66 162.22 221.58

KSB SE KGaA 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 98.46 41.81 120.33 106.97 113.91

KSB SE KGaA 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 $221 Mil.

* 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.


KSB SE KGaA  (OTCPK:KSVRF) Operating Income Explanation

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

KSB SE KGaA'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 )
=227.822 * ( 1 - 1.56% )/( (2125.171 + 2062.548)/ 2 )
=224.2679768/2093.8595
=10.71 %

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))
=2758.811 - 417.054 - ( 216.586 - max(0, 969.725 - 1938.385+216.586))
=2125.171

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))
=2911.471 - 400.386 - ( 448.537 - max(0, 983.954 - 1982.033+448.537))
=2062.548

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:

KSB SE KGaA'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 )
=253.08/( ( (660.762 + max(611.459, 0)) + (707.855 + max(513.635, 0)) )/ 2 )
=253.08/( ( 1272.221 + 1221.49 )/ 2 )
=253.08/1246.8555
=20.30 %

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)
=(635.085 + 823.754 + 94.642) - (417.054 + 0 + 524.968)
=611.459

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(604.779 + 791.213 + 73.198) - (400.386 + 0 + 555.169)
=513.635

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 %:

KSB SE KGaA'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 )
=113.911/1562.032
=7.29 %

* 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.

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.


KSB SE KGaA Operating Income Related Terms

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KSB SE KGaA (KSB SE KGaA) Business Description

Traded in Other Exchanges
Address
Johann-Klein-Strasse 9, Frankenthal, RP, DEU, 67227
KSB SE & Co KGaA is a German-based company. It is a provider of pumps, valves, and related services. Its operations are carried out in three segments namely Pumps, Valves, and KSB SupremeServ Segment comprises the spare parts business for pumps and valves. A majority part of its sales and revenue is comes from the Pumps segment. The Pumps segment includes single and multistage pumps, submersible pumps, and associated control and drives systems. The company's pumps are used in various applications where fluids need to be transported as well as in other applications which belong to industry, building services, water engineering, wastewater engineering, energy supply, and mining.

KSB SE KGaA (KSB SE KGaA) Headlines

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