China Telecom (China Telecom) Operating Income : $3,047 Mil (TTM As of Dec. 2023)

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What is China Telecom Operating Income?

China Telecom's Operating Income for the three months ended in Dec. 2023 was $-473 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $3,047 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. China Telecom's Operating Income for the three months ended in Dec. 2023 was $-473 Mil. China Telecom's Revenue for the three months ended in Dec. 2023 was $18,550 Mil. Therefore, China Telecom's Operating Margin % for the quarter that ended in Dec. 2023 was -2.55%.

Warning Sign:

China Telecom Corp Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -2.2%.

China Telecom's 5-Year average Growth Rate for Operating Margin % was -2.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. China Telecom's annualized ROC % for the quarter that ended in Dec. 2023 was -1.35%. China Telecom's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 3.59%.

China Telecom Operating Income Historical Data

The historical data trend for China Telecom'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.

China Telecom Operating Income Chart

China Telecom Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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4,144.75

5,150.70

4,858.93

4,794.67

5,199.85

China Telecom Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															-342.80	-	2,054.59	-472.56	1,465.25

China Telecom 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 $3,047 Mil.

China Telecom (NYSE:CHA) Operating Income Explanation

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

China Telecom'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 )
=	-1890.24 * ( 1 - 21.6% )	/	( (103244.801	+	115546.763)	/ 2 )
=	-1481.94816	/	109395.782
=	-1.35 %

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	))
=	114498.474	-	28533.33	-	( 11982.9	-	max(0, 42343.987	-	25064.33	+	11982.9	))
=	103244.801

	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	))
=	117057.505	-	20498.025	-	( 12863.925	-	max(0, 42496.849	-	23509.566	+	12863.925	))
=	115546.763

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

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

China Telecom'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 )
=	2705.804	/	( ( (72272.598 + max(-26743.617, 0))	+	(78301.588 + max(-29414.442, 0)) )	/	2 )
=	2705.804	/	( ( 72272.598	+	78301.588 )	/	2 )
=	2705.804	/	75287.093
=	3.59 %

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)
=	(7126.635	+	687.227	+	5267.568)	-	(28533.33	+	0	+	11291.717)
=	-26743.617

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(4511.078	+	478.558	+	5656.005)	-	(20498.025	+	0	+	19562.058)
=	-29414.442

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 %:

China Telecom'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 )
	=	-472.56	/	18549.682
	=	-2.55 %

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.

China Telecom Operating Income Related Terms

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China Telecom (China Telecom) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » China Telecom Corp Ltd (NYSE:CHA) » Definitions » Operating Income

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00728:Hong Kong ZCH:Germany 601728:China

Address

31 Jinrong Street, Xicheng District, Beijing, CHN, 100033

Website

https://www.chinatelecom-h.com

China Telecom is the largest fixed-line operator in China, originally covering 21 southern provinces. It has 102 million fixed-line subscribers, 189 million broadband customers, and 406 million wireless subscribers, having overtaken China Unicom to become the second-largest wireless operator in China behind China Mobile. The firm is increasing its cross-selling of products and seeing strong growth from industrial digitization services, such as internet data centers and cloud computing. Its internet data center business is already the largest in China, with a plan to have 560,000 cabinets by end 2023.