AerCap Holdings NV (AerCap Holdings NV) Operating Income : $2,069 Mil (TTM As of Dec. 2023)

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What is AerCap Holdings NV Operating Income?

AerCap Holdings NV's Operating Income for the three months ended in Dec. 2023 was $511 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $2,069 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. AerCap Holdings NV's Operating Income for the three months ended in Dec. 2023 was $511 Mil. AerCap Holdings NV's Revenue for the three months ended in Dec. 2023 was $1,896 Mil. Therefore, AerCap Holdings NV's Operating Margin % for the quarter that ended in Dec. 2023 was 26.98%.

AerCap Holdings NV's 5-Year average Growth Rate for Operating Margin % was -0.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. AerCap Holdings NV's annualized ROC % for the quarter that ended in Dec. 2023 was 2.87%. AerCap Holdings NV's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 3.38%.

AerCap Holdings NV Operating Income Historical Data

The historical data trend for AerCap Holdings NV'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.

AerCap Holdings NV Operating Income Chart

AerCap Holdings NV Annual Data

Trend

Dec14

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Dec20

Dec21

Dec22

Dec23

Operating Income

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1,410.79

1,034.34

983.63

1,710.18

2,067.08

AerCap Holdings NV 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															432.21	482.37	531.10	543.78	511.41

AerCap Holdings NV 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 $2,069 Mil.

AerCap Holdings NV (NYSE:AER) Operating Income Explanation

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

AerCap Holdings NV'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 )
=	2045.644 * ( 1 - 3.59% )	/	( (68372.336	+	68854.768)	/ 2 )
=	1972.2053804	/	68613.552
=	2.87 %

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	))
=	71593.664	-	806.031	-	( 2415.297	-	max(0, 1526.381	-	6778.313	+	2415.297	))
=	68372.336

	Invested Capital		(Q: Dec. 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	))
=	71274.559	-	792.61	-	( 1627.181	-	max(0, 1620.135	-	6040.07	+	1627.181	))
=	68854.768

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

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

AerCap Holdings NV'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 )
=	2045.644	/	( ( (60181.387 + max(-750.272, 0))	+	(60724.362 + max(-965.819, 0)) )	/	2 )
=	2045.644	/	( ( 60181.387	+	60724.362 )	/	2 )
=	2045.644	/	60452.8745
=	3.38 %

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)
=	(87.326	+	76.817	+	611.966)	-	(806.031	+	720.35	+	2.2737367544323E-13)
=	-750.272

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(73.667	+	85.668	+	494.981)	-	(792.61	+	827.525	+	0)
=	-965.819

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 %:

AerCap Holdings NV'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 )
	=	511.411	/	1895.807
	=	26.98 %

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.

AerCap Holdings NV Operating Income Related Terms

Thank you for viewing the detailed overview of AerCap Holdings NV's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

AerCap Holdings NV (AerCap Holdings NV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » AerCap Holdings NV (NYSE:AER) » Definitions » Operating Income

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R1D:Germany R1D:Germany

Address

65 St. Stephen's Green, AerCap House, Dublin, IRL, D02 YX20

Website

https://www.aercap.com

AerCap Holdings NV is an aircraft leasing company. Its major activities include leasing, financing, sales, and management of commercial aircraft and engines. It also provides aircraft asset management and corporate services to securitization vehicles, joint ventures, and other third parties. Through its subsidiary, the group also provides engine leasing, certified aircraft engines, airframes, and engine parts. Its geographical segments include China, United States, and Other countries.

Executives

Michael George Walsh	director	65 ST. STEPHEN'S GREEN, DUBLIN L2 2
James A Lawrence	director	2211 S 47TH ST, PHOENIX AZ 85034
Michael Gradon	director	AERCAP HOUSE, 65 ST. STEPHEN'S GREEN, DUBLIN L2 2
Aengus Kelly	officer: Chief Executive Officer	AERCAP HOUSE, 65 ST. STEPHEN'S GREEN, DUBLIN L2 2
Den Dikken Wouter Marinus	officer: Chief Operating Officer	AERCAP HOUSE, 65 ST. STEPHEN'S GREEN, DUBLIN L2 2
James N Chapman	director	14 ALPINE ROAD, GREENWICH CT 06830
Peter Juhas	officer: Chief Financial Officer	65 ST. STEPHEN'S GREEN, DUBLIN L2 2
Philip Gene Scruggs	officer: Chief Comm. Off. and President	AERCAP HOUSE, 65 ST. STEPHEN'S GREEN, DUBLIN L2 2
Robert G Warden	director	AERCAP HOUSE, 65 ST. STEPHEN'S GREEN, DUBLIN L2 2
Marius Jonkhart	director	AERCAP HOUSE, 65 ST. STEPHEN'S GREEN, DUBLIN L2 2
Al Noaimi Salem Rashed Abdulla Ali	director	AERCAP HOUSE, 65 ST. STEPHEN'S GREEN, DUBLIN L2 2
Walter Field Mclallen	director	1225 17TH AVE SOUTH, NASHVILLE TN 37212
Paul T Dacier	director	EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Pieter Korteweg	director	C/O CERBERUS CAPITAL MANAGEMENT L.P., 299 PARK AVENUE - 22ND FLOOR, NEW YORK NY 10171
Robert H Benmosche	director	180 MAIDEN LANE, NEW YORK NY 10038