Morrison (Wm) Supermarkets (LSE:MRW) Operating Income : £200 Mil (TTM As of Jul. 2021)

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What is Morrison (Wm) Supermarkets Operating Income?

Morrison (Wm) Supermarkets's Operating Income for the six months ended in Jul. 2021 was £138 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2021 was £200 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Morrison (Wm) Supermarkets's Operating Income for the six months ended in Jul. 2021 was £138 Mil. Morrison (Wm) Supermarkets's Revenue for the six months ended in Jul. 2021 was £9,054 Mil. Therefore, Morrison (Wm) Supermarkets's Operating Margin % for the quarter that ended in Jul. 2021 was 1.52%.

Good Sign:

Morrison (Wm) Supermarkets PLC operating margin is expanding. Margin expansion is usually a good sign.

Morrison (Wm) Supermarkets's 5-Year average Growth Rate for Operating Margin % was 0.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Morrison (Wm) Supermarkets's annualized ROC % for the quarter that ended in Jul. 2021 was -1.81%. Morrison (Wm) Supermarkets's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2021 was 3.28%.

Morrison (Wm) Supermarkets Operating Income Historical Data

The historical data trend for Morrison (Wm) Supermarkets'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.

Morrison (Wm) Supermarkets Operating Income Chart

Morrison (Wm) Supermarkets Annual Data

Trend

Jan12

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Operating Income

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436.00

439.00

432.00

455.00

252.00

Morrison (Wm) Supermarkets Semi-Annual Data
	Jan12	Jul12	Jan13	Jul13	Jan14	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21
Operating Income	Get a 7-Day Free Trial															246.00	209.00	190.00	62.00	138.00

Morrison (Wm) Supermarkets 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 Jul. 2021 adds up the semi-annually data reported by the company within the most recent 12 months, which was £200 Mil.

Morrison (Wm) Supermarkets (LSE:MRW) Operating Income Explanation

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

Morrison (Wm) Supermarkets's annualized ROC % for the quarter that ended in Jul. 2021 is calculated as:

	ROC % (Q: Jul. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jan. 2021 )	+	Invested Capital (Q: Jul. 2021 ))	/ count )
=	276 * ( 1 - 165.85% )	/	( (10116	+	9967)	/ 2 )
=	-181.746	/	10041.5
=	-1.81 %

where

	Invested Capital		(Q: Jan. 2021 )
=	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	))
=	11036	-	2471	-	( 240	-	max(0, 2981	-	1430	+	240	))
=	10116

	Invested Capital		(Q: Jul. 2021 )
=	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	))
=	11261	-	2950	-	( 274	-	max(0, 3133	-	1477	+	274	))
=	9967

Note: The Operating Income data used here is two times the semi-annual (Jul. 2021) data.

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

Morrison (Wm) Supermarkets's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2021 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jul. 2021 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jan. 2021		Q: Jul. 2021
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	274	/	( ( (8355 + max(-1665, 0))	+	(8343 + max(-1759, 0)) )	/	2 )
=	274	/	( ( 8355	+	8343 )	/	2 )
=	274	/	8349
=	3.28 %

where Working Capital is:

	Working Capital		(Q: Jan. 2021 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(190	+	814	+	186)	-	(2471	+	0	+	384)
=	-1665

	Working Capital		(Q: Jul. 2021 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(405	+	739	+	59)	-	(2950	+	0	+	12)
=	-1759

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jul. 2021) EBIT data.

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

Morrison (Wm) Supermarkets's Operating Margin % for the quarter that ended in Jul. 2021 is calculated as:

Operating Margin %	=	Operating Income (Q: Jul. 2021 )	/	Revenue (Q: Jul. 2021 )
	=	138	/	9054
	=	1.52 %

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.

Morrison (Wm) Supermarkets Operating Income Related Terms

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Morrison (Wm) Supermarkets (LSE:MRW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Morrison (Wm) Supermarkets PLC (LSE:MRW) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

Gain Lane, Hilmore House, Bradford, West Yorkshire, GBR, BD3 7DL

Website

https://www.morrisons.com

Founded by William Morrison in 1899, Wm Morrison Supermarkets is the U.K.'s fourth- largest grocery chain, with a market share of around 10%. The 2004 takeover of rival Safeway transformed the firm in terms of scale and gave it a significant presence outside its base in Northern England. The company operates about 500 stores, entirely in the United Kingdom. Morrisons has an online presence via a partnership with Ocado and Amazon and has lately been trying to expand its wholesale channel with new agreements (McColl's).

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