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Patterson Operating Income

: $231 Mil (TTM As of Jul. 2022)
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Patterson's Operating Income for the three months ended in Jul. 2022 was $35 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2022 was $231 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Patterson's Operating Income for the three months ended in Jul. 2022 was $35 Mil. Patterson's Revenue for the three months ended in Jul. 2022 was $1,523 Mil. Therefore, Patterson's Operating Margin % for the quarter that ended in Jul. 2022 was 2.29%.

Warning Sign:

Patterson Companies Inc operating margin has been in a 5-year decline. The average rate of decline per year is -11.9%.

Patterson's 5-Year average Growth Rate for Operating Margin % was -11.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Patterson's annualized ROC % for the quarter that ended in Jul. 2022 was 6.44%. Patterson's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2022 was 15.92%.


Patterson Operating Income Historical Data

The historical data trend for Patterson'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.

Patterson Annual Data
Trend Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22
Operating Income
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 219.89 137.72 102.94 210.61 157.00

Patterson Quarterly Data
Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22
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 -39.53 62.86 60.83 72.84 34.84

Patterson 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 Jul. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $231 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.


Patterson  (NAS:PDCO) Operating Income Explanation

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

Patterson's annualized ROC % for the quarter that ended in Jul. 2022 is calculated as:

ROC % (Q: Jul. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Apr. 2022 ) + Invested Capital (Q: Jul. 2022 ))/ count )
=139.376 * ( 1 - 21.9% )/( (1642.295 + 1739.23)/ 2 )
=108.852656/1690.7625
=6.44 %

where

Invested Capital(Q: Apr. 2022 )
=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))
=2741.63 - 957.321 - ( 142.014 - max(0, 1015.669 - 1679.022+142.014))
=1642.295

Invested Capital(Q: Jul. 2022 )
=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))
=2758.368 - 869.578 - ( 149.56 - max(0, 1043.564 - 1705.981+149.56))
=1739.23

Note: The Operating Income data used here is four times the quarterly (Jul. 2022) data.

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

Patterson's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2022 is calculated as:

ROC (Joel Greenblatt) %(Q: Jul. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Apr. 2022  Q: Jul. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=146.496/( ( (283.862 + max(579.687, 0)) + (290.11 + max(686.843, 0)) )/ 2 )
=146.496/( ( 863.549 + 976.953 )/ 2 )
=146.496/920.251
=15.92 %

where Working Capital is:

Working Capital(Q: Apr. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(447.162 + 785.604 + 304.242) - (957.321 + 0 + 0)
=579.687

Working Capital(Q: Jul. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(370.347 + 874.817 + 311.257) - (869.578 + 0 + 2.2737367544323E-13)
=686.843

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jul. 2022) EBIT data.

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

Patterson's Operating Margin % for the quarter that ended in Jul. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Jul. 2022 )/Revenue (Q: Jul. 2022 )
=34.844/1523.265
=2.29 %

* 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.


Patterson Operating Income Related Terms

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


Patterson Business Description

Patterson logo
Traded in Other Exchanges
Address
1031 Mendota Heights Road, Saint Paul, MN, USA, 55120
Patterson is a leading dental distributor and wholesaler of consumable products and equipment operating through two business segments, Patterson Dental and Patterson Animal Health. The firm offers dental and veterinary practice management products, including office software products, technical, financial, and educational services, primarily to two highly fragmented market segments throughout the U.S. and Canada. The company began as a dental distributor in 1877 and expanded to become a major supplier of animal health products to vets and production companies through an acquisition of Animal Health International in 2015. Patterson also has a presence in the U.K. animal health market.
Executives
Mckoy Philip director 120 BROADWAY SUITE 200 SANTA MONICA CA 90401
Rogan Timothy E officer: President - Dental 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Shirley Eric R officer: President-Patterson Dental 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Zurbay Donald officer: Chief Financial Officer C/O ST. JUDE MEDICAL, INC. ONE ST JUDE MEDICAL DRIVE ST. PAUL MN 55117
Malecha Francis Joseph director 9900 WEST 109TH STREET, SUITE 100 OVERLAND PARK KS 66210
Frohning Andrea L. officer: Chief Human Resources Officer 13515 BALLANTYNE CORPORATE PLACE CHARLOTTE NC 28277
Frenzel Robert director 414 NICOLLET MALL MINNEAPOLIS MN 55401
Goedken Dennis W officer: Interim CFO 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Walchirk Mark S director, officer: President & CEO 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Pohlman Kevin M officer: President - Animal Health 822 7TH STREET, SUITE 740 GREELEY CO 80631
Blanco Alex N director ONE BAXTER PARKWAY DEERFIELD IL 60015
Misiak David G officer: President, Patterson Dental 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55120
Baker Kelly A officer: CHRO 1031 MENDOTA HEIGHTS ST. PAUL MN 55120
Korsh Les B officer: VP, General Counsel 1031 MENDOTA HEIGHTS ROAD ST. PAUL MN 55110
Adent John Edward officer: CEO - Subsidiary 822 7TH STREET, SUITE 740 GREELEY CO 80631

Patterson Headlines

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