USD 7,987 Mil as of today(2020-02-19). In depth view into Qualcomm Operating Income explanation, calculation, historical data and more" />QCOM Operating Income | Qualcomm - GuruFocus.com
Switch to:

Qualcomm Operating Income

: USD 7,987 Mil (TTM As of Dec. 2019)
View and export this data going back to 1991. Start your Free Trial

Qualcomm's Operating Income for the three months ended in Dec. 2019 was USD 1,030 Mil. ts operating income for the trailing twelve months (TTM) ended in Dec. 2019 was USD 7,987 Mil.

Warning Sign:

Qualcomm Inc had operating loss over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Qualcomm's Operating Income for the three months ended in Dec. 2019 was USD 1,030 Mil. Qualcomm's Revenue for the three months ended in Dec. 2019 was USD 5,077 Mil. Therefore, Qualcomm's Operating Margin % for the quarter that ended in Dec. 2019 was 20.29%.

Warning Sign:

Qualcomm Inc operating margin has been in 5-year decline. The average rate of decline per year is -17.4%.

Qualcomm's 5-Year average Growth Rate for Operating Margin % was -17.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Qualcomm's annualized ROC % for the quarter that ended in Dec. 2019 was 45.71%. Qualcomm's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 was 140.12%.


Qualcomm Operating Income Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Qualcomm Annual Data
Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5,776.00 6,495.00 2,581.00 621.00 7,667.00

Qualcomm Quarterly Data
Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19
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 710.00 940.00 5,317.00 700.00 1,030.00

Qualcomm 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.

Qualcomm's Operating Income for the fiscal year that ended in Sep. 2019 is calculated as

Operating Income(A: Sep. 2019 )
=Revenue-Cost of Goods Sold-Selling, General, & Admin. Expense
=24273-8599-2195
-Research & Development-Depreciation, Depletion and Amortization-Others
-5398-1401--987
=7,667

Qualcomm's Operating Income for the quarter that ended in is calculated as

Operating Income(Q: Dec. 2019 )
=Revenue-Cost of Goods Sold-Selling, General, & Admin. Expense
=5077-2113-528
-Research & Development-Depreciation, Depletion and Amortization-Others (1)
-1406-351--351
=1,030

Operating Income(Q: Dec. 2019 )
=EBITDA-Depreciation, Depletion and Amortization-Others (2)
=1446-351-65
=1,030

Operating Income for the trailing twelve months (TTM) ended in Dec. 2019 was 940 (Mar. 2019 ) + 5317 (Jun. 2019 ) + 700 (Sep. 2019 ) + 1030 (Dec. 2019 ) = USD 7,987 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Qualcomm  (NAS:QCOM) Operating Income Explanation

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

Qualcomm's annualized ROC % for the quarter that ended in Dec. 2019 is calculated as:

ROC %(Q: Dec. 2019 )
=NOPAT/Average Invested Capital
=Operating Income*(1-Tax Rate)/( (Invested Capital (Q: Sep. 2019 ) + Invested Capital (Q: Dec. 2019 ))/2)
=4120 * ( 1 - 2.32% )/( (8582 + 9025)/2)
=4024.416/8803.5
=45.71 %

where

Invested Capital(Q: Sep. 2019 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation + Total Stockholders Equity - Cash
=13437 + 2496 + 4909 - 12260
=8582

Invested Capital(Q: Dec. 2019 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation + Total Stockholders Equity - Cash
=13437 + 2498 + 4513 - 11423
=9025

Note: The Operating Income data used here is four times the quarterly (Dec. 2019) operating income data.

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

Qualcomm's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 is calculated as:

ROC (Joel Greenblatt's)(Q: Dec. 2019 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2019  Q: Dec. 2019
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/2 )
=4380/( ( (3081 + max(-3359, 0)) + (3171 + max(-1914, 0)) )/2 )
=4380/( ( 3081 + 3171 )/2 )
=4380/3126
=140.12 %

where Working Capital is:

Working Capital(Q: Sep. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1046 + 1400 + 634) - (4275 + 565 + 1599)
=-3359

Working Capital(Q: Dec. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2737 + 1420 + 625) - (2657 + 511 + 3528)
=-1914

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2019) EBIT data.

3. Operating Income is also linked to Operating Margin:

Qualcomm's Operating Margin % for the quarter that ended in Dec. 2019 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2019 )/Revenue (Q: Dec. 2019 )
=1030/5077
=20.29 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Qualcomm Operating Income Related Terms

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
/* */