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Volcano Bhd (XKLS:0232) Operating Income : RM3.46 Mil (TTM As of Mar. 2024)


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What is Volcano Bhd Operating Income?

Volcano Bhd's Operating Income for the three months ended in Mar. 2024 was RM1.18 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was RM3.46 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Volcano Bhd's Operating Income for the three months ended in Mar. 2024 was RM1.18 Mil. Volcano Bhd's Revenue for the three months ended in Mar. 2024 was RM17.17 Mil. Therefore, Volcano Bhd's Operating Margin % for the quarter that ended in Mar. 2024 was 6.87%.

Volcano Bhd'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. Volcano Bhd's annualized ROC % for the quarter that ended in Mar. 2024 was 4.59%. Volcano Bhd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 7.51%.


Volcano Bhd Operating Income Historical Data

The historical data trend for Volcano Bhd'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.

Volcano Bhd Operating Income Chart

Volcano Bhd Annual Data
Trend Dec18 Dec19 Dec20
Operating Income
8.72 6.99 4.04

Volcano Bhd Quarterly Data
Dec18 Dec19 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Mar23 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 2.44 0.61 1.63 0.65 1.18

Volcano Bhd 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 RM3.46 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.


Volcano Bhd  (XKLS:0232) Operating Income Explanation

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

Volcano Bhd'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 )
=4.716 * ( 1 - 25.11% )/( (77.102 + 76.852)/ 2 )
=3.5318124/76.977
=4.59 %

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:

Volcano Bhd'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 )
=5.628/( ( (49.605 + max(25.793, 0)) + (48.768 + max(25.67, 0)) )/ 2 )
=5.628/( ( 75.398 + 74.438 )/ 2 )
=5.628/74.918
=7.51 %

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)
=(14.317 + 19.318 + 0.94799999999999) - (8.79 + 0 + 0)
=25.793

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(14.903 + 18.857 + 0.40700000000001) - (8.497 + 0 + 0)
=25.67

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 %:

Volcano Bhd'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 )
=1.179/17.169
=6.87 %

* 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.


Volcano Bhd Operating Income Related Terms

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Volcano Bhd (XKLS:0232) Business Description

Traded in Other Exchanges
N/A
Address
1411 Jalan Perusahaan Kawasan, Perusahaan Perai 1, Butterworth, Perai, PNG, MYS, 13600
Volcano Bhd is a manufacturer of parts and components including metal and non-metal nameplates and plastic injection moulded parts. Geographically the company's manufacturing facilities is located in Malaysia and Thailand to serve multinational customers across various industries such as electrical and electronic, automotive, food, furniture, aerospace and label industries. The company operates in Malaysia, Singapore, Thailand, Indonesia, China, USA and other countries. It earns majority of its revenue from Thailand.

Volcano Bhd (XKLS:0232) Headlines

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