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Maxim Integrated Products (Maxim Integrated Products) Operating Income : $959 Mil (TTM As of Jun. 2021)


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What is Maxim Integrated Products Operating Income?

Maxim Integrated Products's Operating Income for the three months ended in Jun. 2021 was $284 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2021 was $959 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Maxim Integrated Products's Operating Income for the three months ended in Jun. 2021 was $284 Mil. Maxim Integrated Products's Revenue for the three months ended in Jun. 2021 was $720 Mil. Therefore, Maxim Integrated Products's Operating Margin % for the quarter that ended in Jun. 2021 was 39.52%.

Good Sign:

Maxim Integrated Products Inc operating margin is expanding. Margin expansion is usually a good sign.

Maxim Integrated Products's 5-Year average Growth Rate for Operating Margin % was 6.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Maxim Integrated Products's annualized ROC % for the quarter that ended in Jun. 2021 was 56.51%. Maxim Integrated Products's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2021 was 137.33%.


Maxim Integrated Products Operating Income Historical Data

The historical data trend for Maxim Integrated Products'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.

Maxim Integrated Products Operating Income Chart

Maxim Integrated Products Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 714.75 849.40 753.48 691.76 959.13

Maxim Integrated Products Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 178.67 210.25 216.99 247.42 284.48

Maxim Integrated Products 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 Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $959 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.


Maxim Integrated Products  (NAS:MXIM) Operating Income Explanation

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

Maxim Integrated Products's annualized ROC % for the quarter that ended in Jun. 2021 is calculated as:

ROC % (Q: Jun. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2021 ) + Invested Capital (Q: Jun. 2021 ))/ count )
=1137.904 * ( 1 - 8.6% )/( (1822.775 + 1857.981)/ 2 )
=1040.044256/1840.378
=56.51 %

where

Invested Capital(Q: Mar. 2021 )
=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))
=4172.227 - 315.479 - ( 2033.973 - max(0, 534.503 - 2874.798+2033.973))
=1822.775

Invested Capital(Q: Jun. 2021 )
=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))
=4523.099 - 373.719 - ( 2291.399 - max(0, 637.312 - 3218.285+2291.399))
=1857.981

Note: The Operating Income data used here is four times the quarterly (Jun. 2021) data.

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

Maxim Integrated Products's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2021 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2021  Q: Jun. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1163.268/( ( (543.848 + max(306.322, 0)) + (554.339 + max(289.574, 0)) )/ 2 )
=1163.268/( ( 850.17 + 843.913 )/ 2 )
=1163.268/847.0415
=137.33 %

where Working Capital is:

Working Capital(Q: Mar. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(571.042 + 242.343 + 27.44) - (315.479 + 0 + 219.024)
=306.322

Working Capital(Q: Jun. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(658.829 + 237.414 + 30.643) - (373.719 + 0 + 263.593)
=289.574

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2021) EBIT data.

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

Maxim Integrated Products's Operating Margin % for the quarter that ended in Jun. 2021 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2021 )/Revenue (Q: Jun. 2021 )
=284.476/719.855
=39.52 %

* 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.


Maxim Integrated Products Operating Income Related Terms

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Maxim Integrated Products (Maxim Integrated Products) Business Description

Traded in Other Exchanges
N/A
Address
160 Rio Robles, San Jose, CA, USA, 95134
Maxim Integrated makes high-performance analog and mixed-signal integrated circuits. The company offers a wide range of products serving a host of analog-intensive applications, including power management, audio conversion, and sensors. Maxim supplies its diverse product portfolio to a broad base of customers in the communications, computing, industrial, automotive, and consumer-related end markets.
Executives
Jon Imperato officer: SVP of Sales and Marketing 160 RIO ROBLES SAN JOSE CA 95134
Tunc Doluca director, officer: PRESIDENT, CEO & DIRECTOR
James R Bergman director 28202 CABOT RD. STE 200 LAGUNA NIGEL CA 92677
Bryan Preeshl officer: SENIOR VICE PRESIDENT 160 RIO ROBLES SAN JOSE CA 95134
Mary Ann Wright director 486 S. PIERCE AVE., SUITE E, LOUISVILLE CO 80027
Robert Edward Grady director 555 CALIFORNIA STREET, SUITE 3450, SAN FRANCISCO CA 94104
Edwin Medlin officer: SVP, Chief Legal, Admin, Compl MAXIM INTEGRATED PRODUCTS INC 120 SAN GABRIEL DRIVE SUNNYVALE CA 94086
Brian C White officer: SENIOR VP and CFO C/O INTEGRATED DEVICE TECHNOLOGY, INC., 6024 SILVER CREEK VALLEY ROAD, SAN JOSE CA 95138
Vivek Jain officer: SENIOR VP 120 SAN GABRIEL DRIVE, SUNNYVALE CA 94086
Joseph R Bronson director 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
David Loftus officer: Vice President C/O INTERSIL CORPORATION 1001 MURPHY RANCH ROAD MILPITAS CA 95035
Mercedes Johnson director MICRON TECHNOLOGY, INC, 8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716
William P Sullivan director 5301 STEVENS CREEK BLVD, MS 1A-LC, SANTA CLARA CA 95051
William D Watkins director P O BOX 8, SAINT PETERS MO 63376
Tracy Accardi director 160 RIO ROBLES SAN JOSE CA 95134

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