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Booz Allen Hamilton Holding (Booz Allen Hamilton Holding) Operating Income : $706 Mil (TTM As of Dec. 2023)


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What is Booz Allen Hamilton Holding Operating Income?

Booz Allen Hamilton Holding's Operating Income for the three months ended in Dec. 2023 was $248 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $706 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Booz Allen Hamilton Holding's Operating Income for the three months ended in Dec. 2023 was $248 Mil. Booz Allen Hamilton Holding's Revenue for the three months ended in Dec. 2023 was $2,570 Mil. Therefore, Booz Allen Hamilton Holding's Operating Margin % for the quarter that ended in Dec. 2023 was 9.63%.

Warning Sign:

Booz Allen Hamilton Holding Corp operating margin has been in a 5-year decline. The average rate of decline per year is -8.2%.

Booz Allen Hamilton Holding's 5-Year average Growth Rate for Operating Margin % was -8.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Booz Allen Hamilton Holding's annualized ROC % for the quarter that ended in Dec. 2023 was 13.34%. Booz Allen Hamilton Holding's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 299.17%.


Booz Allen Hamilton Holding Operating Income Historical Data

The historical data trend for Booz Allen Hamilton Holding'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.

Booz Allen Hamilton Holding Operating Income Chart

Booz Allen Hamilton Holding Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 602.39 669.20 754.37 685.18 446.85

Booz Allen Hamilton Holding 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 58.64 -42.91 234.42 266.99 247.56

Booz Allen Hamilton Holding 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 $706 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.


Booz Allen Hamilton Holding  (NYSE:BAH) Operating Income Explanation

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

Booz Allen Hamilton Holding'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 )
=990.232 * ( 1 - 29.77% )/( (5548.944 + 4879.403)/ 2 )
=695.4399336/5214.1735
=13.34 %

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))
=7162.609 - 1056.369 - ( 557.296 - max(0, 1605.741 - 2700.555+557.296))
=5548.944

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))
=6474.728 - 993.512 - ( 601.813 - max(0, 1597.408 - 2676.935+601.813))
=4879.403

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

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

Booz Allen Hamilton Holding'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 )
=1025.908/( ( (348.554 + max(-706.697, 0)) + (337.286 + max(-653.728, 0)) )/ 2 )
=1025.908/( ( 348.554 + 337.286 )/ 2 )
=1025.908/342.92
=299.17 %

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)
=(678.241 + 0 + 133.412) - (1056.369 + 14.918 + 447.063)
=-706.697

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(737.599 + 0 + 107.036) - (993.512 + 19.45 + 485.401)
=-653.728

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 %:

Booz Allen Hamilton Holding'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 )
=247.558/2569.801
=9.63 %

* 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.


Booz Allen Hamilton Holding Operating Income Related Terms

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Booz Allen Hamilton Holding (Booz Allen Hamilton Holding) Business Description

Traded in Other Exchanges
Address
8283 Greensboro Drive, Hamilton Building, McLean, VA, USA, 22102
Booz Allen Hamilton Holding Corp is a provider of management consulting services to the U.S. government. Other services offered include technology, such as cloud computing and cybersecurity consulting, and engineering consulting. The consulting services are focused on defense, intelligence, and civil markets. In addition to the U.S. government, Booz Allen Hamilton provides its management and technology consulting services to large corporations, institutions, and nonprofit organizations. The company assists clients in long-term engagements around the globe.
Executives
Kristine Anderson officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Melody C Barnes director 1631 MONUMENT AVENUE, RICHMOND VA 23220
Ralph W Shrader director, officer: President and CEO, other: Member of 13D Group 8283 GREENSBORO, MCLEAN VA 22102
Horacio Rozanski officer: Executive Vice President, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Nancy Laben officer: EVP and General Counsel, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Susan L Penfield officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Elizabeth M Thompson officer: SVP & Chief Personnel Officer, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Rory P Read director ONE DELL WAY, ROUND ROCK TX 78682
Richard Crowe officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Matthew Calderone officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Lloyd Jr Howell officer: Executive Vice President, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Thomas Pfeifer officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Karen M Dahut officer: Senior Vice President, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Scott M Murphy officer: VP, PAO & Controller 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Gretchen W Mcclain director XYLEM INC., 1133 WESTCHESTER AVENUE, SUITE N200, WHITE PLAINS NY 10604