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MercadoLibre Operating Income

: $392 Mil (TTM As of Sep. 2021)
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MercadoLibre's Operating Income for the three months ended in Sep. 2021 was $160 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2021 was $392 Mil.

Warning Sign:

MercadoLibre Inc had lost money in 50% of the time over the past 12quarters.

Operating Margin % is calculated as Operating Income divided by its Revenue. MercadoLibre's Operating Income for the three months ended in Sep. 2021 was $160 Mil. MercadoLibre's Revenue for the three months ended in Sep. 2021 was $1,857 Mil. Therefore, MercadoLibre's Operating Margin % for the quarter that ended in Sep. 2021 was 8.63%.

MercadoLibre's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. MercadoLibre's annualized ROC % for the quarter that ended in Sep. 2021 was 20.41%. MercadoLibre's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2021 was 64.73%.


MercadoLibre Operating Income Historical Data

The historical data trend for MercadoLibre'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.

MercadoLibre Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Operating Income
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 194.77 144.87 -69.48 -153.16 127.69

MercadoLibre Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 83.07 -25.13 90.84 166.17 160.38

MercadoLibre 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. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $392 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.


MercadoLibre  (NAS:MELI) Operating Income Explanation

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

MercadoLibre's annualized ROC % for the quarter that ended in Sep. 2021 is calculated as:

ROC % (Q: Sep. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2021 ) + Invested Capital (Q: Sep. 2021 ))/ count )
=641.512 * ( 1 - 24.5% )/( (2311.238 + 2435.901)/ 2 )
=484.34156/2373.5695
=20.41 %

where

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))
=6142.694 - 3133.095 - ( 1260.391 - max(0, 3869.29 - 4567.651+1260.391))
=2311.238

Invested Capital(Q: Sep. 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))
=6800.017 - 3367.526 - ( 1289.905 - max(0, 4286.531 - 5283.121+1289.905))
=2435.901

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

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

MercadoLibre's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2021 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2021  Q: Sep. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=682.112/( ( (1015.25 + max(-1638.632, 0)) + (1092.334 + max(-1645.71, 0)) )/ 2 )
=682.112/( ( 1015.25 + 1092.334 )/ 2 )
=682.112/1053.792
=64.73 %

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)
=(69.844 + 169.449 + 1330.982) - (3133.095 + 0 + 75.812)
=-1638.632

Working Capital(Q: Sep. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(70.542 + 226.694 + 1494.773) - (3367.526 + 0 + 70.193)
=-1645.71

When net working capital is negative, 0 is used.

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

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

MercadoLibre's Operating Margin % for the quarter that ended in Sep. 2021 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2021 )/Revenue (Q: Sep. 2021 )
=160.378/1857.452
=8.63 %

* 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.


MercadoLibre Operating Income Related Terms

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


MercadoLibre Business Description

MercadoLibre logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 454110 SIC : 5961
Address
Pasaje Posta 4789, 6th Floor, Buenos Aires, ARG, C1430EKG
Founded in 1999, MercadoLibre's commerce segment (representing 64% of net revenue in 2020) includes online marketplaces in more than a dozen Latin American countries, display and paid search advertising capabilities (MercadoClics), online store management services (MercadoShops), and third-party logistics solutions (MercadoEnvios). Its fintech segment includes an online/offline payment-processing platform (MercadoPago), mobile wallet platform, credit solutions for buyers/sellers, and asset management offerings (Mercado Fondo). The company derives more than 95% of its revenue from Brazil, Argentina, and Mexico.
Executives
Aguzin Alejandro Nicolas director ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430DNN
Calemzuk Emiliano director C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Segal Susan director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SEGAL SUSAN a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Vazquez Mario director TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 430DNN
Malka Meyer director C/O MERCADOLIBRE, INC. ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1C1430CRG
Sallouti Roberto Balls director ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1 C1430CRG
Galperin Marcos director, officer: President and CEO C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Tolda Stelleo officer: Executive VP and COO C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Ebay Inc 10 percent owner 2025 HAMILTON AVENUE SAN JOSE CA 95125
Rabinovich Daniel officer: EVP-Chief Technology Officer ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430CRG
Melamud Marcelo officer: VP - Chief Accounting Officer TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Spence A Michael director 121 INNOVATION DR STE 200 IRVINE CA 92612
Arnt Pedro officer: Executive VP and CFO ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430CRG
Osvaldo Gimenez officer: Executive VP - Payments TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Olivan Javier director 62 RIDGE VIEW DRIVE ATHERTON X1 94027

MercadoLibre Headlines

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