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Transat AT (Transat AT) Operating Income : $74 Mil (TTM As of Jan. 2024)


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What is Transat AT Operating Income?

Transat AT's Operating Income for the three months ended in Jan. 2024 was $-20 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $74 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Transat AT's Operating Income for the three months ended in Jan. 2024 was $-20 Mil. Transat AT's Revenue for the three months ended in Jan. 2024 was $585 Mil. Therefore, Transat AT's Operating Margin % for the quarter that ended in Jan. 2024 was -3.46%.

Transat AT's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Transat AT's annualized ROC % for the quarter that ended in Jan. 2024 was -4.48%. Transat AT's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was -10.17%.


Transat AT Operating Income Historical Data

The historical data trend for Transat AT'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.

Transat AT Operating Income Chart

Transat AT Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.75 -245.96 -301.63 -219.22 66.07

Transat AT Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 -8.46 13.42 48.77 31.86 -20.24

Transat AT 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 Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $74 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.


Transat AT  (OTCPK:TRZBF) Operating Income Explanation

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

Transat AT's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

ROC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=-80.972 * ( 1 - 0.1% )/( (1682.41 + 1929.611)/ 2 )
=-80.891028/1806.0105
=-4.48 %

where

Invested Capital(Q: Oct. 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))
=1873.811 - 233.504 - ( 317.712 - max(0, 922.135 - 880.032+317.712))
=1682.41

Invested Capital(Q: Jan. 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))
=2075.625 - 301.74 - ( 337.694 - max(0, 1214.88 - 1059.154+337.694))
=1929.611

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

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

Transat AT's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2023  Q: Jan. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-81.184/( ( (789.899 + max(-343.565, 0)) + (806.172 + max(-486.863, 0)) )/ 2 )
=-81.184/( ( 789.899 + 806.172 )/ 2 )
=-81.184/798.0355
=-10.17 %

where Working Capital is:

Working Capital(Q: Oct. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(8.247 + 24.603 + 436.147) - (233.504 + 550.012 + 29.046)
=-343.565

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(8.967 + 28.26 + 578.89) - (301.74 + 765.004 + 36.236)
=-486.863

When net working capital is negative, 0 is used.

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

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

Transat AT's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jan. 2024 )/Revenue (Q: Jan. 2024 )
=-20.243/585.188
=-3.46 %

* 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.


Transat AT Operating Income Related Terms

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Transat AT (Transat AT) Business Description

Traded in Other Exchanges
Address
300 Leo-Pariseau Street, Suite 600, Montreal, QC, CAN, H2X 4C2
Transat A.T. Inc is a Canadian company that specializes in the organization, marketing, and distribution of holiday travel in the tourism industry. The company offers vacation packages, hotel stays, and air travel under the Transat and Air Transat brands. The company's core business consists of a Canadian leisure airline based in Canada that is vertically integrated with its other services of holiday packages, distribution through a dynamic travel agency network, value-added services at travel destinations, and accommodations. Its geographical segments include the Transatlantic, Americas, and others. It operates in one segment namely holiday travel.

Transat AT (Transat AT) Headlines