Pepkor Holdings (JSE:PPH) Operating Income : R8,320 Mil (TTM As of Sep. 2023)

View and export this data going back to 2017. Start your Free Trial

What is Pepkor Holdings Operating Income?

Pepkor Holdings's Operating Income for the six months ended in Sep. 2023 was R3,755 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was R8,320 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Pepkor Holdings's Operating Income for the six months ended in Sep. 2023 was R3,755 Mil. Pepkor Holdings's Revenue for the six months ended in Sep. 2023 was R43,603 Mil. Therefore, Pepkor Holdings's Operating Margin % for the quarter that ended in Sep. 2023 was 8.61%.

Good Sign:

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

Pepkor Holdings's 5-Year average Growth Rate for Operating Margin % was 4.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Pepkor Holdings's annualized ROC % for the quarter that ended in Sep. 2023 was 8.87%. Pepkor Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was -16.23%.

Pepkor Holdings Operating Income Historical Data

The historical data trend for Pepkor 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.

Pepkor Holdings Operating Income Chart

Pepkor Holdings Annual Data

Trend

Jun15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

Get a 7-Day Free Trial

5,783.00

5,952.00

8,309.00

8,530.00

8,320.00

Pepkor Holdings Semi-Annual Data
	Jun15	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Operating Income	Get a 7-Day Free Trial											3,913.00	4,701.00	3,829.00	4,565.00	3,755.00

Pepkor 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 Sep. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was R8,320 Mil.

Pepkor Holdings (JSE:PPH) Operating Income Explanation

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

Pepkor Holdings's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	7510 * ( 1 - -10.64% )	/	( (95598	+	91711)	/ 2 )
=	8309.064	/	93654.5
=	8.87 %

where

	Invested Capital		(Q: Mar. 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	))
=	113412	-	14276	-	( 3538	-	max(0, 21296	-	32720	+	3538	))
=	95598

	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	))
=	108740	-	12102	-	( 4927	-	max(0, 23443	-	33256	+	4927	))
=	91711

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

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

Pepkor Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-4384	/	( ( (19635 + max(11828, 0))	+	(20193 + max(2383, 0)) )	/	2 )
=	-4384	/	( ( 31463	+	22576 )	/	2 )
=	-4384	/	27019.5
=	-16.23 %

where Working Capital is:

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(9234	+	17250	+	627)	-	(14276	+	0	+	1007)
=	11828

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1567	+	16974	+	1152)	-	(12102	+	0	+	5208)
=	2383

When net working capital is negative, 0 is used.

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

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

Pepkor Holdings's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	3755	/	43603
	=	8.61 %

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.

Pepkor Holdings Operating Income Related Terms

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

Pepkor Holdings (JSE:PPH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Pepkor Holdings Ltd (JSE:PPH) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

PPKRF:USA S1VA:Germany

Address

36 Stellenberg Road, Parow Industria, Cape Town, WC, ZAF, 7493

Website

https://www.pepkor.co.za

Pepkor Holdings Ltd is an operator of a chain of retail stores based in Parow East, South Africa. The company functions offer segments that include clothing and general merchandise, furniture, appliances and electronics, building materials and fintech, it generates the vast majority of its revenue from the clothing and general merchandise segment, which consists of clothing, footwear and homeware products, fast-moving consumer specialty goods, cellular and financial services, thereby enabling its customers to get easy access to everyday products and services at adorable prices. Geographically, it generates majority of its revenue from South Africa and also operates in other countries.