Aster DM Healthcare (BOM:540975) Operating Income

: ₹9,509 Mil (TTM As of Dec. 2022)

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Aster DM Healthcare's Operating Income for the three months ended in Dec. 2022 was ₹2,710 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2022 was ₹9,509 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Aster DM Healthcare's Operating Income for the three months ended in Dec. 2022 was ₹2,710 Mil. Aster DM Healthcare's Revenue for the three months ended in Dec. 2022 was ₹31,921 Mil. Therefore, Aster DM Healthcare's Operating Margin % for the quarter that ended in Dec. 2022 was 8.49%.

Good Sign:

Aster DM Healthcare Ltd operating margin is expanding. Margin expansion is usually a good sign.

Aster DM Healthcare's 5-Year average Growth Rate for Operating Margin % was 19.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Aster DM Healthcare's annualized ROC % for the quarter that ended in Dec. 2022 was 9.08%. Aster DM Healthcare's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2022 was 12.88%.

Aster DM Healthcare Operating Income Historical Data

The historical data trend for Aster DM Healthcare'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.

Aster DM Healthcare Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Operating Income

3,807.80

5,835.50

7,370.00

7,778.90

11,484.90

Aster DM Healthcare Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Operating Income																3,002.10	3,980.80	1,330.90	1,487.00	2,710.10

Aster DM Healthcare 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. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹9,509 Mil.

Aster DM Healthcare (BOM:540975) Operating Income Explanation

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

Aster DM Healthcare's annualized ROC % for the quarter that ended in Dec. 2022 is calculated as:

	ROC % (Q: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2022 )	+	Invested Capital (Q: Dec. 2022 ))	/ count )
=	10840.4 * ( 1 - 8.31% )	/	( (109448.2	+	0)	/ 1 )
=	9939.56276	/	109448.2
=	9.08 %

where

	Invested Capital		(Q: Sep. 2022 )
=	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	))
=	136463.5	-	24805.6	-	( 4632	-	max(0, 42121.5	-	44331.2	+	4632	))
=	109448.2

	Invested Capital		(Q: Dec. 2022 )
=	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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

Note: The Operating Income data used here is four times the quarterly (Dec. 2022) data.

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

Aster DM Healthcare's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2022 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2022 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2022		Q: Dec. 2022
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	10427.2	/	( ( (71253.4 + max(9710.5, 0))	+	(0 + max(0, 0)) )	/	1 )
=	10427.2	/	( ( 80963.9	+	0 )	/	1 )
=	10427.2	/	80963.9
=	12.88 %

where Working Capital is:

	Working Capital		(Q: Sep. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(22296	+	12064.8	+	5338.4)	-	(24805.6	+	0	+	5183.1)
=	9710.5

	Working Capital		(Q: Dec. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0)	-	(0	+	0	+	0)
=	0

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2022) EBIT data.

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

Aster DM Healthcare's Operating Margin % for the quarter that ended in Dec. 2022 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2022 )	/	Revenue (Q: Dec. 2022 )
	=	2710.1	/	31921.4
	=	8.49 %

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.

Aster DM Healthcare Operating Income Related Terms

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Aster DM Healthcare (BOM:540975) Business Description

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ASTERDM:India

Address

33rd Floor, Tower-D, Aspect Towers, Executive Tower at Bay Avenue, P.O Box 8703, Business Bay, Dubai, ARE

Website

https://www.asterdmhealthcare.com

Aster DM Healthcare Ltd is an India-based company that engages in the provision of healthcare solutions. The company operates in multiple business divisions of the healthcare industry, including hospitals, clinics, and retail pharmacies and provides health care services to patients across economic segments in several GCC states through various brands Aster, Medcare and Access. Its segments are Hospitals, Clinics, Retail pharmacies and others, of which key revenue is derived from the Hospitals segment The company conducts operations in all GCC states, comprising of United Arab Emirates, Qatar, Oman, Kingdom of Saudi Arabia, Jordan, Kuwait and Bahrain; India, and UAE.

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