Switch to:
Australia and New Zealand Banking Group Ltd  (OTCPK:ANZBY) Operating Income: $6,210 Mil (TTM As of Mar. 2017)

Australia and New Zealand Banking Group Ltd's Operating Income for the six months ended in Mar. 2017 was $3,465 Mil. ts operating income for the trailing twelve months (TTM) ended in Mar. 2017 was $6,210 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Australia and New Zealand Banking Group Ltd's Operating Income for the six months ended in Mar. 2017 was $3,465 Mil. Australia and New Zealand Banking Group Ltd's Revenue for the six months ended in Mar. 2017 was $7,619 Mil. Therefore, Australia and New Zealand Banking Group Ltd's Operating Margin % for the quarter that ended in Mar. 2017 was 45.48%.

Australia and New Zealand Banking Group Ltd's 5-Year average Growth Rate for Operating Margin % was -0.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Australia and New Zealand Banking Group Ltd's annualized ROC % for the quarter that ended in Mar. 2017 was 3.86%. Australia and New Zealand Banking Group Ltd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2017 was 11.54%.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Australia and New Zealand Banking Group Ltd Annual Data

Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8,318.42 8,392.56 9,320.07 7,433.31 6,209.57

Australia and New Zealand Banking Group Ltd Semi-Annual Data

Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17
Operating Income 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 Premium Member Only Premium Member Only Premium Member Only 3,971.43 3,803.81 2,912.23 3,261.96 3,464.94

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.

Australia and New Zealand Banking Group Ltd's Operating Income for the fiscal year that ended in Sep. 2016 is calculated as

Operating Income(A: Sep. 2016 )
=Revenue-Cost of Goods Sold-Selling, General, & Admin. Expense
=15587.6993166-0-4735.76309795
-Research & Development-Depreciation, Depletion and Amortization-Others
-0-1119.96962794-3522.39939256
=6,210

Australia and New Zealand Banking Group Ltd's Operating Income for the quarter that ended in is calculated as

Operating Income(Q: Mar. 2017 )
=Revenue-Cost of Goods Sold-Selling, General, & Admin. Expense
=7618.90243902-0-2356.70731707
-Research & Development-Depreciation, Depletion and Amortization-Others (1)
-0-286.585365854-1510.67073171
=3,465

Operating Income(Q: Mar. 2017 )
=EBITDA-Depreciation, Depletion and Amortization-Others (2)
=3751.52439024-286.585365854-0
=3,465

For stock reported semi-annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Mar. 2017 was $6,210 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

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

Australia and New Zealand Banking Group Ltd's annualized ROC % for the quarter that ended in Mar. 2017 is calculated as:

ROC %(Q: Mar. 2017 )
=NOPAT/Average Invested Capital
=Operating Income*(1-Tax Rate)/( (Invested Capital (Q: Sep. 2016 ) + Invested Capital (Q: Mar. 2017 ))/2)
=6929.87804878 * ( 1 - 35.79% )/( (108893.697798 + 121755.335366)/2)
=4449.67469512/115324.516582
=3.86 %

where

Invested Capital(Q: Sep. 2016 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt + Total Equity - Cash
=16677.2968869 + 70920.2733485 + 43901.2908125 - 22605.1632498
=108893.697798

Invested Capital(Q: Mar. 2017 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt + Total Equity - Cash
=9144.05487805 + 129743.902439 + 44048.0182927 - 61180.6402439
=121755.335366

Note: The Operating Income data used here is two times the semi-annual (Mar. 2017) operating income data.

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

Australia and New Zealand Banking Group Ltd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2017 is calculated as:

ROC (Joel Greenblatt's)(Q: Mar. 2017 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2016  Q: Mar. 2017
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/2 )
=6929.87804878/( ( (1674.25968109 + max(48315.1100987, 0)) + (1508.38414634 + max(68563.2621951, 0)) )/2 )
=6929.87804878/( ( 49989.3697798 + 70071.6463415 )/2 )
=6929.87804878/60030.5080606
=11.54 %

where Working Capital is:

Working Capital(Q: Sep. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + -22605.1632498) - (6731.20728929 + 142.748671222 + -77794.229309)
=48315.1100987

Working Capital(Q: Mar. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + -61180.6402439) - (6138.7195122 + 311.737804878 + -136194.359756)
=68563.2621951

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Mar. 2017) EBIT data.

3. Operating Income is also linked to Operating Margin:

Australia and New Zealand Banking Group Ltd's Operating Margin % for the quarter that ended in Mar. 2017 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2017 )/Revenue (Q: Mar. 2017 )
=3464.93902439/7618.90243902
=45.48 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Related Terms


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK