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Founder Holdings (Founder Holdings) Operating Income : $30.0 Mil (TTM As of Dec. 2023)


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What is Founder Holdings Operating Income?

Founder Holdings's Operating Income for the six months ended in Dec. 2023 was $23.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $30.0 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Founder Holdings's Operating Income for the six months ended in Dec. 2023 was $23.3 Mil. Founder Holdings's Revenue for the six months ended in Dec. 2023 was $78.0 Mil. Therefore, Founder Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was 29.82%.

Good Sign:

Founder Holdings Ltd operating margin is expanding. Margin expansion is usually a good sign.

Founder Holdings's 5-Year average Growth Rate for Operating Margin % was 0.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Founder Holdings's annualized ROC % for the quarter that ended in Dec. 2023 was 64.21%. Founder Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 69.50%.


Founder Holdings Operating Income Historical Data

The historical data trend for Founder Holdings'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.

Founder Holdings Operating Income Chart

Founder Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.39 26.95 29.39 26.85 29.98

Founder Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 20.04 2.31 24.52 6.71 23.25

Founder Holdings 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 semi-annually data reported by the company within the most recent 12 months, which was $30.0 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.


Founder Holdings  (OTCPK:FHGDF) Operating Income Explanation

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

Founder Holdings'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: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=46.5 * ( 1 - -1.1% )/( (66.908 + 79.52)/ 2 )
=47.0115/73.214
=64.21 %

where

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

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

Founder Holdings'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: Jun. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=21.966/( ( (31.273 + max(-1.491, 0)) + (31.444 + max(0.493, 0)) )/ 2 )
=21.966/( ( 31.273 + 31.937 )/ 2 )
=21.966/31.605
=69.50 %

where Working Capital is:

Working Capital(Q: Jun. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(23.224 + 15.384 + 0.133) - (26.477 + 0 + 13.755)
=-1.491

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(26.421 + 11.513 + 3.327) - (12.217 + 0 + 28.551)
=0.493

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

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

Founder Holdings'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 )
=23.25/77.977
=29.82 %

* 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.


Founder Holdings Operating Income Related Terms

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Founder Holdings (Founder Holdings) Business Description

Traded in Other Exchanges
Address
9 Hoi Shing Road, Unit 1408, 14th Floor, New Territories, Cable TV Tower, Tsuen Wan, Hong Kong, HKG
Founder Holdings Ltd is engaged in software development and systems integration. It operates in the business division of the provision of software development and system integration and information products distribution. Geographically, the company operates in Hong Kong, Mainland China, and other countries, of which key revenue is generated from Mainland China. The group serves in the fields of printing, media, publishing, big data, and fonts library.

Founder Holdings (Founder Holdings) Headlines

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