BHP Group (BHP Group) Operating Income

: $29,373 Mil (TTM As of Dec. 2021)

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BHP Group's Operating Income for the six months ended in Dec. 2021 was $14,246 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2021 was $29,373 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. BHP Group's Operating Income for the six months ended in Dec. 2021 was $14,246 Mil. BHP Group's Revenue for the six months ended in Dec. 2021 was $30,527 Mil. Therefore, BHP Group's Operating Margin % for the quarter that ended in Dec. 2021 was 46.67%.

BHP Group's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. BHP Group's annualized ROC % for the quarter that ended in Dec. 2021 was 21.35%. BHP Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2021 was 41.73%.

BHP Group Operating Income Historical Data

The historical data trend for BHP Group'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.

BHP Group Annual Data

Trend

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Operating Income

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12,292.00

15,868.00

15,805.00

14,010.00

25,050.00

BHP Group Semi-Annual Data
	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21
Operating Income	Get a 7-Day Free Trial															7,979.00	6,031.00	9,923.00	15,127.00	14,246.00

BHP Group 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. 2021 adds up the semi-annually data reported by the company within the most recent 12 months, which was $29,373 Mil.

BHP Group (NYSE:BBL) Operating Income Explanation

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

BHP Group's annualized ROC % for the quarter that ended in Dec. 2021 is calculated as:

	ROC % (Q: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2021 )	+	Invested Capital (Q: Dec. 2021 ))	/ count )
=	28492 * ( 1 - 34.22% )	/	( (88810	+	86797)	/ 2 )
=	18742.0376	/	87803.5
=	21.35 %

where

	Invested Capital		(Q: Jun. 2021 )
=	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	))
=	108927	-	9827	-	( 15317	-	max(0, 16403	-	26693	+	15317	))
=	88810

	Invested Capital		(Q: Dec. 2021 )
=	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	))
=	105725	-	6406	-	( 12522	-	max(0, 20619	-	39673	+	12522	))
=	86797

Note: The Operating Income data used here is two times the semi-annual (Dec. 2021) data.

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

BHP Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2021 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2021 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2021		Q: Dec. 2021
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	29960	/	( ( (73813 + max(-2678, 0))	+	(60433 + max(9346, 0)) )	/	2 )
=	29960	/	( ( 73813	+	69779 )	/	2 )
=	29960	/	71796
=	41.73 %

where Working Capital is:

	Working Capital		(Q: Jun. 2021 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(6059	+	4426	+	612)	-	(9827	+	105	+	3843)
=	-2678

	Working Capital		(Q: Dec. 2021 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(4898	+	4514	+	17499)	-	(6406	+	27	+	11132)
=	9346

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2021) EBIT data.

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

BHP Group's Operating Margin % for the quarter that ended in Dec. 2021 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2021 )	/	Revenue (Q: Dec. 2021 )
	=	14246	/	30527
	=	46.67 %

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.

BHP Group Operating Income Related Terms

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BHP Group (BHP Group) Business Description

Industry

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Address

160 Victoria Street, Nova South, London, GBR, SW1E 5LB

Website

https://www.bhp.com

BHP is a leading global diversified miner supplying iron ore, copper, oil, gas, and metallurgical. The merger of BHP Limited (now BHP Ltd.) and Billiton PLC (now BHP PLC) created the present-day BHP. Shareholders in each company have equivalent economic and voting rights in BHP as a whole and in 2022 voted to reunify the dual listed structure. Major assets include Pilbara iron ore, Queensland coking coal, Escondida copper and conventional petroleum assets, principally in Australia and the Gulf of Mexico. Onshore U.S. oil and gas assets were sold in 2018 and the remaining Petroleum assets are likely to be spun off and merged with Woodside.