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Office Propertiesome Trust (Office Propertiesome Trust) Operating Income : $108.2 Mil (TTM As of Mar. 2024)


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What is Office Propertiesome Trust Operating Income?

Office Propertiesome Trust's Operating Income for the three months ended in Mar. 2024 was $32.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $108.2 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Office Propertiesome Trust's Operating Income for the three months ended in Mar. 2024 was $32.3 Mil. Office Propertiesome Trust's Revenue for the three months ended in Mar. 2024 was $139.4 Mil. Therefore, Office Propertiesome Trust's Operating Margin % for the quarter that ended in Mar. 2024 was 23.14%.

Good Sign:

Office Properties Income Trust operating margin is expanding. Margin expansion is usually a good sign.

Office Propertiesome Trust's 5-Year average Growth Rate for Operating Margin % was 2.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Office Propertiesome Trust's annualized ROC % for the quarter that ended in Mar. 2024 was 3.34%. Office Propertiesome Trust's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 278.05%.


Office Propertiesome Trust Operating Income Historical Data

The historical data trend for Office Propertiesome Trust'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.

Office Propertiesome Trust Operating Income Chart

Office Propertiesome Trust 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 126.83 111.94 105.08 111.36 102.08

Office Propertiesome Trust Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 26.16 28.33 25.71 21.88 32.26

Office Propertiesome Trust 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 Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $108.2 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.


Office Propertiesome Trust  (NAS:OPI) Operating Income Explanation

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

Office Propertiesome Trust's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=129.052 * ( 1 - -1.14% )/( (3999.906 + 3817.493)/ 2 )
=130.5231928/3908.6995
=3.34 %

where

Invested Capital(Q: Dec. 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))
=3989.669 - 147.191 - ( 12.315 - max(0, 354.716 - 197.288+12.315))
=3999.906

Invested Capital(Q: Mar. 2024 )
=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))
=3957.93 - 116.924 - ( 23.513 - max(0, 117.248 - 193.483+23.513))
=3817.493

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

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

Office Propertiesome Trust's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=122.312/( ( (0 + max(35.257, 0)) + (0 + max(52.722, 0)) )/ 2 )
=122.312/( ( 35.257 + 52.722 )/ 2 )
=122.312/43.9895
=278.05 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(133.264 + 37.31 + 14.399) - (147.191 + 0 + 2.525)
=35.257

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(137.489 + 11.888 + 20.593) - (116.924 + 0 + 0.324)
=52.722

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

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

Office Propertiesome Trust's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=32.263/139.435
=23.14 %

* 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.


Office Propertiesome Trust Operating Income Related Terms

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Office Propertiesome Trust (Office Propertiesome Trust) Business Description

Traded in Other Exchanges
Address
255 Washington Street, Two Newton Place, Suite 300, Newton, MA, USA, 02458-1634
Office Properties Income Trust is a United States-based real estate investment trust. Its property portfolio is mainly composed of single-tenant office buildings, as well as multitenant properties, which are leased to parties of high credit quality characteristics. Its largest tenant is the U.S. government, followed by other smaller government entities and corporations. The company's properties are spread across the United States.
Executives
Brian E. Donley officer: CFO and Treasurer C/O THE RMR GROUP LLC,, TWO NEWTON PL., 255 WASHINGTON ST., NEWTON MA 02458
Mark A. Talley director C/O THE RMR GROUP LLC, TWO NEWTON PALCE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Jennifer B Clark director
Christopher J. Bilotto officer: Vice President C/O THE RMR GROUP LLC, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Matthew C. Brown officer: CFO and Treasurer C/O OFFICE PROPERTIES INCOME TRUST, TWO NEWTON PLACE, 255 WASHINGTON STREET, NEWTON MA 02458
Donna D. Fraiche director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
William A. Lamkin director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Jeffrey C. Leer officer: CFO and Treasurer C/O FIVE STAR SENIOR LIVING INC., 400 CENTRE STREET, NEWTON MA 02458
Elena Poptodorova director TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Reit Commonwealth 10 percent owner TWO NORTH RIVERSIDE PLAZA, SUITE 2000, CHICAGO IL 60606
Mark Lawrence Kleifges officer: Treasurer and CFO C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
David M Blackman officer: Treasurer and CFO C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Barry M. Portnoy director, 10 percent owner C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
John L Harrington director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Adam D. Portnoy director, 10 percent owner, officer: President C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458