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KKB Engineering Bhd (XKLS:9466) Operating Income : RM44.6 Mil (TTM As of Dec. 2023)


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What is KKB Engineering Bhd Operating Income?

KKB Engineering Bhd's Operating Income for the three months ended in Dec. 2023 was RM13.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was RM44.6 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. KKB Engineering Bhd's Operating Income for the three months ended in Dec. 2023 was RM13.5 Mil. KKB Engineering Bhd's Revenue for the three months ended in Dec. 2023 was RM166.1 Mil. Therefore, KKB Engineering Bhd's Operating Margin % for the quarter that ended in Dec. 2023 was 8.13%.

Good Sign:

KKB Engineering Bhd operating margin is expanding. Margin expansion is usually a good sign.

KKB Engineering Bhd's 5-Year average Growth Rate for Operating Margin % was 0.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. KKB Engineering Bhd's annualized ROC % for the quarter that ended in Dec. 2023 was 8.11%. KKB Engineering Bhd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 46.29%.


KKB Engineering Bhd Operating Income Historical Data

The historical data trend for KKB Engineering 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.

KKB Engineering Bhd Operating Income Chart

KKB Engineering Bhd 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 71.12 36.02 38.76 24.42 44.63

KKB Engineering Bhd Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 13.88 2.73 14.68 13.73 13.50

KKB Engineering 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 Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was RM44.6 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.


KKB Engineering Bhd  (XKLS:9466) Operating Income Explanation

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

KKB Engineering Bhd's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=53.984 * ( 1 - 64.1% )/( (222.23 + 255.721)/ 2 )
=19.380256/238.9755
=8.11 %

where

Invested Capital(Q: Sep. 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))
=609.789 - 148.094 - ( 239.465 - max(0, 148.179 - 461.975+239.465))
=222.23

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

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

KKB Engineering Bhd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=62.764/( ( (135.809 + max(-9.4269999999999, 0)) + (135.348 + max(-34.437, 0)) )/ 2 )
=62.764/( ( 135.809 + 135.348 )/ 2 )
=62.764/135.5785
=46.29 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(87.11 + 47.88 + 3.676) - (148.094 + 0 + -0.0010000000000048)
=-9.4269999999999

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(79.535 + 51.505 + 3.871) - (155 + 0 + 14.348)
=-34.437

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

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

KKB Engineering Bhd's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=13.496/166.063
=8.13 %

* 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.


KKB Engineering Bhd Operating Income Related Terms

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KKB Engineering Bhd (XKLS:9466) Business Description

Traded in Other Exchanges
N/A
Address
Bintawa Industrial Estate, Lot 865, Section 66, Jalan Kilang, Kuching, SWK, MYS, 93450
KKB Engineering Bhd is a Malaysia-based company engaged in steel fabrication; civil construction; hot-dip galvanizing; the manufacturing of liquefied petroleum gas (LPG) cylinders; structural steel fabrication for oil & gas facilities; and manufacturing and trading of steel pipes and pipe specials. It operates through two segments namely Engineering and construction; and Manufacturing sectors. The Engineering and construction segment includes civil engineering works and construction, steel fabrication, and hot-dip galvanizing. The Manufacturing segment manufactures LPG cylinders, steel pipes, and related products. It generates a vast majority of its revenue from the engineering and construction segment.

KKB Engineering Bhd (XKLS:9466) Headlines

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