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XBP Europe Holdings (XBP Europe Holdings) Operating Income : $-1.9 Mil (TTM As of Mar. 2024)


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What is XBP Europe Holdings Operating Income?

XBP Europe Holdings's Operating Income for the three months ended in Mar. 2024 was $0.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $-1.9 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. XBP Europe Holdings's Operating Income for the three months ended in Mar. 2024 was $0.5 Mil. XBP Europe Holdings's Revenue for the three months ended in Mar. 2024 was $40.4 Mil. Therefore, XBP Europe Holdings's Operating Margin % for the quarter that ended in Mar. 2024 was 1.22%.

XBP Europe Holdings'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. XBP Europe Holdings's annualized ROC % for the quarter that ended in Mar. 2024 was 2.97%. XBP Europe Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -5.87%.


XBP Europe Holdings Operating Income Historical Data

The historical data trend for XBP Europe Holdings'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.

XBP Europe Holdings Operating Income Chart

XBP Europe Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
-1.54 -19.05 -4.64 -1.15 -3.25

XBP Europe Holdings Quarterly Data
Dec19 Dec20 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 -0.84 1.62 -1.10 -2.94 0.49

XBP Europe Holdings 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 $-1.9 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.


XBP Europe Holdings  (NAS:XBP) Operating Income Explanation

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

XBP Europe Holdings'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 )
=1.972 * ( 1 - -26.32% )/( (86.32 + 81.621)/ 2 )
=2.4910304/83.9705
=2.97 %

where

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

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

XBP Europe Holdings'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 )
=-1.208/( ( (20.864 + max(-44.177, 0)) + (20.278 + max(-39.586, 0)) )/ 2 )
=-1.208/( ( 20.864 + 20.278 )/ 2 )
=-1.208/20.571
=-5.87 %

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)
=(20.885 + 4.74 + 5.827) - (48.623 + 6.54 + 20.466)
=-44.177

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(20.892 + 4.738 + 8.488) - (50.684 + 6.732 + 16.288)
=-39.586

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 %:

XBP Europe Holdings'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 )
=0.493/40.35
=1.22 %

* 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.


XBP Europe Holdings Operating Income Related Terms

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XBP Europe Holdings (XBP Europe Holdings) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
2701 East Grauwyler Road, Irving, TX, USA, 75061
XBP Europe Holdings Inc is a pan-European integrator of bills, payments and related solutions and services seeking to enable the digital transformation of its more than 2,000 clients. The company's name - XBP stands for exchange for bills and payments and reflects the company's strategy to connect buyers and suppliers, across industries, including banking, healthcare, insurance, utilities and the public sector, to optimize clients' bills and payments and related digitization processes. The company provides business process management solutions with proprietary software suites and deep domain expertise, serving as a technology and services partner for its clients. Its cloud-based structure enables it to deploy its solutions across the European market, the Middle East, and Africa.