Kumba Iron Ore (Kumba Iron Ore) Operating Income : $2,138 Mil (TTM As of Dec. 2023)

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What is Kumba Iron Ore Operating Income?

Kumba Iron Ore's Operating Income for the six months ended in Dec. 2023 was $1,239 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $2,138 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Kumba Iron Ore's Operating Income for the six months ended in Dec. 2023 was $1,239 Mil. Kumba Iron Ore's Revenue for the six months ended in Dec. 2023 was $2,574 Mil. Therefore, Kumba Iron Ore's Operating Margin % for the quarter that ended in Dec. 2023 was 48.13%.

Good Sign:

Kumba Iron Ore Ltd operating margin is expanding. Margin expansion is usually a good sign.

Kumba Iron Ore's 5-Year average Growth Rate for Operating Margin % was 3.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Kumba Iron Ore's annualized ROC % for the quarter that ended in Dec. 2023 was 48.63%. Kumba Iron Ore's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 82.38%.

Kumba Iron Ore Operating Income Historical Data

The historical data trend for Kumba Iron Ore'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.

Kumba Iron Ore Operating Income Chart

Kumba Iron Ore Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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2,026.05

2,826.27

3,774.45

1,868.52

2,143.16

Kumba Iron Ore 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															1,583.67	1,319.30	661.11	899.02	1,238.73

Kumba Iron Ore 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 $2,138 Mil.

Kumba Iron Ore (OTCPK:KUMBF) Operating Income Explanation

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

Kumba Iron Ore'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 )
=	2477.46 * ( 1 - 26.42% )	/	( (3459.519	+	4038.31)	/ 2 )
=	1822.915068	/	3748.9145
=	48.63 %

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	))
=	4628.057	-	535.242	-	( 633.296	-	max(0, 614.197	-	1715.783	+	633.296	))
=	3459.519

	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	))
=	5298.399	-	450.764	-	( 809.325	-	max(0, 792.098	-	2119.971	+	809.325	))
=	4038.31

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:

Kumba Iron Ore'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 )
=	2526.834	/	( ( (2422.592 + max(513.423, 0))	+	(2635.943 + max(562.879, 0)) )	/	2 )
=	2526.834	/	( ( 2936.015	+	3198.822 )	/	2 )
=	2526.834	/	3067.4185
=	82.38 %

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)
=	(350.977	+	579.201	+	152.309)	-	(535.242	+	0	+	33.822)
=	513.423

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(340.851	+	611.717	+	170.56)	-	(450.764	+	0	+	109.485)
=	562.879

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 %:

Kumba Iron Ore'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 )
	=	1238.73	/	2573.687
	=	48.13 %

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.

Kumba Iron Ore Operating Income Related Terms

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Kumba Iron Ore (Kumba Iron Ore) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Kumba Iron Ore Ltd (OTCPK:KUMBF) » Definitions » Operating Income

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KIO:South Africa KIROY:USA KUI:Germany

Address

144 Oxford Road, Rosebank, Melrose, Johannesburg, GT, ZAF, 2196

Website

https://www.angloamericankumba.com

Kumba Iron Ore Ltd is engaged in the exploration, mining, processing blending and sale of iron ore to the global steel industry. The company primarily operates in South Africa, with mining operations in the Northern Cape and Limpopo provinces, as well as a head office in Centurion, Gauteng, and a port operation in Saldanha Bay, Western Cape. The company's flagship asset is the Sishen mine, which it holds a majority stake, located near the town of Kathu in the Northern Cape Province. The Sishen mine is an opencast mine and produces the bulk of the group's iron ore, most of which is exported. It also holds interest in Kolomela mine.

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