Arcontech Group (LSE:ARC) Operating Income : £0.96 Mil (TTM As of Dec. 2023)

View and export this data going back to 2000. Start your Free Trial

What is Arcontech Group Operating Income?

Arcontech Group's Operating Income for the six months ended in Dec. 2023 was £0.41 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was £0.96 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Arcontech Group's Operating Income for the six months ended in Dec. 2023 was £0.41 Mil. Arcontech Group's Revenue for the six months ended in Dec. 2023 was £1.45 Mil. Therefore, Arcontech Group's Operating Margin % for the quarter that ended in Dec. 2023 was 28.23%.

Good Sign:

Arcontech Group PLC operating margin is expanding. Margin expansion is usually a good sign.

Arcontech Group's 5-Year average Growth Rate for Operating Margin % was 4.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Arcontech Group's annualized ROC % for the quarter that ended in Dec. 2023 was 23.45%. Arcontech Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 254.04%.

Arcontech Group Operating Income Historical Data

The historical data trend for Arcontech 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.

Arcontech Group Operating Income Chart

Arcontech Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Operating Income

Get a 7-Day Free Trial

0.91

1.04

0.76

0.92

Arcontech 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															0.43	0.33	0.36	0.55	0.41

Arcontech 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 £0.96 Mil.

Arcontech Group (LSE:ARC) Operating Income Explanation

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

Arcontech 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 )
=	0.818 * ( 1 - 0% )	/	( (3.094	+	3.882)	/ 2 )
=	0.818	/	3.488
=	23.45 %

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	))
=	9.033	-	0.427	-	( 6.411	-	max(0, 1.399	-	6.911	+	6.411	))
=	3.094

	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	))
=	9.82	-	0.474	-	( 5.734	-	max(0, 1.606	-	7.07	+	5.734	))
=	3.882

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:

Arcontech 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 )
=	0.818	/	( ( (0.079 + max(-1.223, 0))	+	(0.565 + max(-0.398, 0)) )	/	2 )
=	0.818	/	( ( 0.079	+	0.565 )	/	2 )
=	0.818	/	0.322
=	254.04 %

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)
=	(0.136	+	0	+	0)	-	(0.427	+	0	+	0.932)
=	-1.223

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.138	+	0	+	0.0010000000000003)	-	(0.474	+	0	+	1.063)
=	-0.398

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 %:

Arcontech 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 )
	=	0.409	/	1.449
	=	28.23 %

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.

Arcontech Group Operating Income Related Terms

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

Arcontech Group (LSE:ARC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Arcontech Group PLC (LSE:ARC) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

11-21 Paul Street, 1st Floor, London, GBR, EC2A 4JU

Website

https://www.arcontech.com

Arcontech Group PLC is a real-time software company. The company develops and sells products and bespoke systems for collection, processing, distribution and presentation and time-sensitive financial markets data and provides computer consultancy services. Its products include Cityvision, Excelerator, Cityvison Cache, Cityvision Relay etc. The company has a software development and license fees segment. It operates in UK, Europe (excluding UK), Africa, North America, Australia, and Asia Pacific.