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Easyhome New Retail Group Co (SZSE:000785) Operating Income : ¥2,136 Mil (TTM As of Mar. 2024)


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What is Easyhome New Retail Group Co Operating Income?

Easyhome New Retail Group Co's Operating Income for the three months ended in Mar. 2024 was ¥722 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ¥2,136 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Easyhome New Retail Group Co's Operating Income for the three months ended in Mar. 2024 was ¥722 Mil. Easyhome New Retail Group Co's Revenue for the three months ended in Mar. 2024 was ¥3,137 Mil. Therefore, Easyhome New Retail Group Co's Operating Margin % for the quarter that ended in Mar. 2024 was 23.02%.

Warning Sign:

Easyhome New Retail Group Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.2%.

Easyhome New Retail Group Co's 5-Year average Growth Rate for Operating Margin % was -8.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Easyhome New Retail Group Co's annualized ROC % for the quarter that ended in Mar. 2024 was 4.15%. Easyhome New Retail Group Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 18.37%.


Easyhome New Retail Group Co Operating Income Historical Data

The historical data trend for Easyhome New Retail Group Co'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.

Easyhome New Retail Group Co Operating Income Chart

Easyhome New Retail Group Co 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 3,012.96 2,108.70 4,424.84 3,682.98 2,273.72

Easyhome New Retail Group Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 859.69 558.67 504.77 350.61 721.97

Easyhome New Retail Group Co 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 Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥2,136 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.


Easyhome New Retail Group Co  (SZSE:000785) Operating Income Explanation

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

Easyhome New Retail Group Co's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=2887.86 * ( 1 - 24.38% )/( (52661.66 + 52660.942)/ 2 )
=2183.799732/52661.301
=4.15 %

where

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))
=53681.288 - 4598.538 - ( 3643.411 - max(0, 10348.992 - 6770.082+3643.411))
=52661.66

Invested Capital(Q: Mar. 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))
=53233.505 - 4092.733 - ( 2904.153 - max(0, 10043.266 - 6523.096+2904.153))
=52660.942

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

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

Easyhome New Retail Group Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2872.924/( ( (15835.63 + max(-3545.426, 0)) + (15444.975 + max(-2437.4, 0)) )/ 2 )
=2872.924/( ( 15835.63 + 15444.975 )/ 2 )
=2872.924/15640.3025
=18.37 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1125.024 + 437.721 + 1163.847) - (4598.538 + 0 + 1673.48)
=-3545.426

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1334.425 + 548.578 + 1309.138) - (4092.733 + 0 + 1536.808)
=-2437.4

When net working capital is negative, 0 is used.

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

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

Easyhome New Retail Group Co's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=721.965/3136.687
=23.02 %

* 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.


Easyhome New Retail Group Co Operating Income Related Terms

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Easyhome New Retail Group Co (SZSE:000785) Business Description

Traded in Other Exchanges
N/A
Address
No. 9 Zhongnan Road, Wuchang District, Hubei Province, Wuhan, CHN, 430071
Easyhome New Retail Group Co Ltd, formerly Wuhan Zhongnan Commercial Group Co Ltd is a China-based commercial and retailing company. It is mainly engaged in commercial property development, shopping mall decoration, and e-commerce business. The company owns department stores, shopping mall, cheap supermarkets, hypermarkets and retail store with China Merchants Plaza Shopping Center, China Merchants Xudong Cheap Price Plaza and Wuhan Pinpin. The firm is also engaged in shop leasing and project development business.
Executives
Zhang Jian Director
Du Xue Gang Executives
Hao Jian Director
Chen Liang Directors, executives
Wang Ning Directors, executives
Li Xuan Xuan Executives
Zhu Chan Fei Executives
Gao Ya Qi Secretary Dong
Chen Chen Executives
Wang Peng Executives
Wang Lin Peng Directors, executives
Li Tao Director
Ren Qu Supervisors
Xiao Shu Gang Supervisors
Niu Bo Xia Supervisors

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