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Gold Fields Operating Income

: $1,566 Mil (TTM As of Dec. 2021)
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Gold Fields's Operating Income for the six months ended in Dec. 2021 was $834 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2021 was $1,566 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Gold Fields's Operating Income for the six months ended in Dec. 2021 was $834 Mil. Gold Fields's Revenue for the six months ended in Dec. 2021 was $2,212 Mil. Therefore, Gold Fields's Operating Margin % for the quarter that ended in Dec. 2021 was 37.71%.

Good Sign:

Gold Fields Ltd operating margin is expanding. Margin expansion is usually a good sign.

Gold Fields's 5-Year average Growth Rate for Operating Margin % was 22.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Gold Fields's annualized ROC % for the quarter that ended in Dec. 2021 was 17.26%. Gold Fields's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2021 was 27.18%.


Gold Fields Operating Income Historical Data

The historical data trend for Gold Fields'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.

Gold Fields Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Income
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 422.90 334.00 747.50 1,491.90 1,565.70

Gold Fields 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 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 Premium Member Only Premium Member Only Premium Member Only 449.50 585.60 906.30 731.70 834.00

Gold Fields 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 $1,566 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.


Gold Fields  (NYSE:GFI) Operating Income Explanation

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

Gold Fields'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 )
=1668 * ( 1 - 33.24% )/( (6779.9 + 6120.1)/ 2 )
=1113.5568/6450
=17.26 %

where

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:

Gold Fields'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 )
=1394/( ( (4966.5 + max(156.5, 0)) + (5079.1 + max(55.6, 0)) )/ 2 )
=1394/( ( 5123 + 5134.7 )/ 2 )
=1394/5128.85
=27.18 %

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)
=(0 + 0 + 873.7) - (0 + 0 + 717.2)
=156.5

Working Capital(Q: Dec. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(76.6 + 627.6 + 113.4) - (704 + 0 + 58)
=55.6

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 %:

Gold Fields'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 )
=834/2211.6
=37.71 %

* 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.


Gold Fields Operating Income Related Terms

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Gold Fields Business Description

Gold Fields logo
Address
150 Helen Road, Sandown, Sandton, ZAF, 2196
Gold Fields Ltd is a globally diversified gold miner and producer with eight operating mines in Australia, Ghana, Peru, and South Africa. The majority of group revenue is generated in the Australian mines, largely the St Ives and Granny Smith sites, with Ghana the second- largest contributor of revenue. The company is involved in underground and surface gold and copper mining and related activities, including exploration, development, extraction, processing, and smelting. In Peru, the company also produces copper, and it has other precious metal exploration interests in Africa, Eurasia, Australasia, and the Americas.

Gold Fields Headlines

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