B/E Aerospace (B/E Aerospace) Operating Income : $507 Mil (TTM As of Dec. 2016)

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What is B/E Aerospace Operating Income?

B/E Aerospace's Operating Income for the three months ended in Dec. 2016 was $109 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2016 was $507 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. B/E Aerospace's Operating Income for the three months ended in Dec. 2016 was $109 Mil. B/E Aerospace's Revenue for the three months ended in Dec. 2016 was $730 Mil. Therefore, B/E Aerospace's Operating Margin % for the quarter that ended in Dec. 2016 was 14.87%.

B/E Aerospace'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. B/E Aerospace's annualized ROC % for the quarter that ended in Dec. 2016 was 12.85%. B/E Aerospace's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2016 was 35.40%.

B/E Aerospace Operating Income Historical Data

The historical data trend for B/E Aerospace'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.

B/E Aerospace Operating Income Chart

B/E Aerospace Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Operating Income

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540.00

629.30

384.00

452.30

506.60

B/E Aerospace Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
Operating Income	Get a 7-Day Free Trial															124.10	129.40	136.60	132.00	108.60

B/E Aerospace 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. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $507 Mil.

B/E Aerospace (NAS:BEAV) Operating Income Explanation

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

B/E Aerospace's annualized ROC % for the quarter that ended in Dec. 2016 is calculated as:

	ROC % (Q: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2016 )	+	Invested Capital (Q: Dec. 2016 ))	/ count )
=	434.4 * ( 1 - 29.52% )	/	( (2324.3	+	2441.3)	/ 2 )
=	306.16512	/	2382.8
=	12.85 %

where

	Invested Capital		(Q: Sep. 2016 )
=	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	))
=	3349.2	-	899.1	-	( 125.8	-	max(0, 899.1	-	1870.5	+	125.8	))
=	2324.3

	Invested Capital		(Q: Dec. 2016 )
=	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	))
=	3370.1	-	726.8	-	( 202	-	max(0, 857.1	-	1868.6	+	202	))
=	2441.3

Note: The Operating Income data used here is four times the quarterly (Dec. 2016) data.

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

B/E Aerospace's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2016 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2016 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2016		Q: Dec. 2016
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	434.4	/	( ( (392.3 + max(845.6, 0))	+	(407 + max(809.5, 0)) )	/	2 )
=	434.4	/	( ( 1237.9	+	1216.5 )	/	2 )
=	434.4	/	1227.2
=	35.40 %

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)
=	(432.3	+	1252	+	60.4)	-	(899.1	+	0	+	0)
=	845.6

	Working Capital		(Q: Dec. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(353.5	+	1258.9	+	54.2)	-	(726.8	+	130.3	+	1.1368683772162E-13)
=	809.5

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2016) EBIT data.

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

B/E Aerospace's Operating Margin % for the quarter that ended in Dec. 2016 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2016 )	/	Revenue (Q: Dec. 2016 )
	=	108.6	/	730.4
	=	14.87 %

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.

B/E Aerospace Operating Income Related Terms

Thank you for viewing the detailed overview of B/E Aerospace's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

B/E Aerospace (B/E Aerospace) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » B/E Aerospace Inc (NAS:BEAV) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.beaerospace.com

B/E Aerospace Inc is a Delaware corporation incorporated in 1987. The Company manufactures aircraft cabin interior products. It designs, develops and manufactures products for both commercial aircrafts and business jets. It offers products including aircraft cabin seating, lighting systems, oxygen systems, food and beverage preparation and storage equipment, galley systems, and modular lavatory systems. It also provides cabin interior reconfiguration, program management and certification services. In addition, it also designs, engineers and manufactures customized and fully integrated thermal and power management solutions. The Company sells and supports its products through its direct sales and product support organization. The Company's operations are subject to changing federal, state and foreign laws and regulations establishing health and environmental quality standards, including those governing discharges of pollutants into the air and water and the management and disposal of hazardous substances and wastes.

Executives

James F Albaugh	director	C/O THE BOEING COMPANY, 100 NORTH RIVERSIDE PLAZA, CHICAGO IL 60606
David J Anderson	director	C/O HONEYWELL INTERNATIONAL INC, 101 COLUMBIA ROAD, MORRISTOWN NJ 09762
Mary M Vandeweghe	director	1601 W. DIEHL ROAD, NAPERVILLE IL 60563
Amin J Khoury	director, officer: Executive Chairman	1300 CORPORATE CENTER WAY, WELLINGTON FL 33414
Joseph T Lower	officer: VP and CFO	200 SW 1ST AVE, SUITE 1600, FORT LAUDERDALE FL 33301
Richard Hamermesh	director	C/O BE AEROSPACE, INC., 1400 CORPORATE CENTER WAY, WELLINGTON FL 33414
John T Whates	director	1400 CORPORATE CENTER WAY, WELLINGTON FL 33414
John A Cuomo	officer: Vice President & GM	6348 WALKER LANE, ALEXANDRIA VA 22310
Thomas P Mccaffrey	officer: Sr. VP & CFO	1300 CORPORATE CENTER WAY, WELLINGTON FL 33414
Charles L Chadwell	director	C/O BE AEROSPACE, INC., 1400 CORPORATE CENTER WAY, WELLINGTON FL 33414
Kyri Loupis	other: VP/CFO Consumable Mgmt Grp	C/O JULIEN YOO, GOLDMAN SACHS, 200 WEST STREET, NEW YORK NY 10282
David C Hurley	director	C/O BE AEROSPACE INC, 1400 CORPORATE CENTERWAY, WELLINGTON FL 33414
Brian H Rowe	director	538 COMMONS DRIVE, GOLDEN CO 80401