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Petco Health and Wellness Co (Petco Health and Wellness Co) Operating Income : $42 Mil (TTM As of Jan. 2024)


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What is Petco Health and Wellness Co Operating Income?

Petco Health and Wellness Co's Operating Income for the three months ended in Jan. 2024 was $0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $42 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Petco Health and Wellness Co's Operating Income for the three months ended in Jan. 2024 was $0 Mil. Petco Health and Wellness Co's Revenue for the three months ended in Jan. 2024 was $1,674 Mil. Therefore, Petco Health and Wellness Co's Operating Margin % for the quarter that ended in Jan. 2024 was 0.01%.

Warning Sign:

Petco Health and Wellness Co Inc operating margin has been in a 5-year decline. The average rate of decline per year is -19.4%.

Petco Health and Wellness Co's 5-Year average Growth Rate for Operating Margin % was -19.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Petco Health and Wellness Co's annualized ROC % for the quarter that ended in Jan. 2024 was 0.01%. Petco Health and Wellness Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 0.09%.


Petco Health and Wellness Co Operating Income Historical Data

The historical data trend for Petco Health and Wellness 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.

Petco Health and Wellness Co Operating Income Chart

Petco Health and Wellness Co Annual Data
Trend Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Operating Income
Get a 7-Day Free Trial 129.60 194.42 266.07 225.56 42.21

Petco Health and Wellness Co Quarterly Data
Jan19 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 77.56 27.62 24.04 -9.61 0.17

Petco Health and Wellness 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 Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $42 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.


Petco Health and Wellness Co  (NAS:WOOF) Operating Income Explanation

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

Petco Health and Wellness Co'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 )
=0.664 * ( 1 - 26.64% )/( (4730.09 + 4872.665)/ 2 )
=0.4871104/4801.3775
=0.01 %

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))
=5426.561 - 803.506 - ( 139.782 - max(0, 1114.563 - 1007.528+139.782))
=4730.09

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))
=5363.152 - 651.886 - ( 125.428 - max(0, 1113.143 - 951.744+125.428))
=4872.665

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

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

Petco Health and Wellness Co'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 )
=1.968/( ( (2218.47 + max(64.24, 0)) + (2200.417 + max(39.642, 0)) )/ 2 )
=1.968/( ( 2282.71 + 2240.059 )/ 2 )
=1.968/2261.3845
=0.09 %

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)
=(50.18 + 730.148 + 87.418) - (803.506 + 0 + 0)
=64.24

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(44.369 + 684.502 + 97.445) - (651.886 + 33.523 + 101.265)
=39.642

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 %:

Petco Health and Wellness Co'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 )
=0.166/1674.476
=0.01 %

* 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.


Petco Health and Wellness Co Operating Income Related Terms

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Petco Health and Wellness Co (Petco Health and Wellness Co) Business Description

Traded in Other Exchanges
Address
10850 Via Frontera, San Diego, CA, USA, 92127
Petco Health and Wellness Co Inc offer pet care products such as puppy food, treats, nutrition, and supplies through retail outlets and online platforms. The company generates revenue from the sale of products and services such as dog and cat food, supplies, and companion animals, among others.
Executives
Gary S Briggs director 117 ADAMS STREET, C/O ETSY, BROOKLYN NY 11201
Giovanni Insana officer: See Remarks 10850 VIA FRONTERA, SAN DIEGO CA 92127
Iris Yen director 10850 VIA FRONTERA, SAN DIEGO CA 92127
David Lubek director 10850 VIA FRONTERA, SAN DIEGO CA 92127
Ron Coughlin director, officer: Chief Executive Officer 3000 HANOVER STREET, PALO ALTO CA 94304
Justin Tichy officer: Chief Stores Officer 10850 VIA FRONTERA, SAN DIEGO CA 92127
Jason Heffelfinger officer: Chief Services Officer 10850 VIA FRONTERA, SAN DIEGO CA 92127
Amy College officer: Chief Merchandising Officer 10850 VIA FRONTERA, SAN DIEGO CA 92127
Michael Nuzzo officer: EVP, CFO & COO 6301 FITCH PATH, NEW ALBANY OH 43054
Brian Larose officer: Chief Financial Officer 10850 VIA FRONTERA, SAN DIEGO CA 92127
Katherine Nauman officer: Chief Marketing Officer 10850 VIA FRONTERA, SAN DIEGO CA 92127
Cvc Pet Lp 10 percent owner ONE MARITIME PLAZA, 16TH FLOOR, 300 CLAY STREET, SAN FRANCISCO CA 94111
Scooby Aggregator, Lp 10 percent owner ONE MARITIME PLAZA, 16TH FLOOR, 300 CLAY STREET, SAN FRANCISCO CA 94111
Canada Pension Plan Investment Board 10 percent owner ONE QUEEN STREET EAST, STE 2500, TORONTO ONTARIO A6 0000
Rajendra M Mohan director 1600 HARBOR BAY PARKWAY STE 200, C/O GOOD GUYS INC, ALAMEDA CA 94502