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Resources Connection Operating Income

: $36.8 Mil (TTM As of Aug. 2021)
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Resources Connection's Operating Income for the three months ended in Aug. 2021 was $18.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2021 was $36.8 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Resources Connection's Operating Income for the three months ended in Aug. 2021 was $18.0 Mil. Resources Connection's Revenue for the three months ended in Aug. 2021 was $183.1 Mil. Therefore, Resources Connection's Operating Margin % for the quarter that ended in Aug. 2021 was 9.84%.

Warning Sign:

Resources Connection Inc operating margin has been in 5-year decline. The average rate of decline per year is -12.1%.

Resources Connection's 5-Year average Growth Rate for Operating Margin % was -12.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Resources Connection's annualized ROC % for the quarter that ended in Aug. 2021 was 13.53%. Resources Connection's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2021 was 85.64%.


Resources Connection Operating Income Historical Data

The historical data trend for Resources Connection'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.

Resources Connection Annual Data
Trend May12 May13 May14 May15 May16 May17 May18 May19 May20 May21
Operating Income
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 34.40 30.62 50.16 36.65 22.95

Resources Connection Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
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 4.21 1.25 2.04 15.46 18.02

Resources Connection 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 Aug. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $36.8 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.


Resources Connection  (NAS:RGP) Operating Income Explanation

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

Resources Connection's annualized ROC % for the quarter that ended in Aug. 2021 is calculated as:

ROC % (Q: Aug. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: May. 2021 ) + Invested Capital (Q: Aug. 2021 ))/ count )
=72.072 * ( 1 - 28.64% )/( (374.753 + 385.251)/ 2 )
=51.4305792/380.002
=13.53 %

where

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

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

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

ROC (Joel Greenblatt) %(Q: Aug. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: May. 2021  Q: Aug. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=73.296/( ( (45.198 + max(32.99, 0)) + (42.743 + max(50.244, 0)) )/ 2 )
=73.296/( ( 78.188 + 92.987 )/ 2 )
=73.296/85.5875
=85.64 %

where Working Capital is:

Working Capital(Q: May. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(116.455 + 0 + 7.235) - (71.5 + 0 + 19.2)
=32.99

Working Capital(Q: Aug. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(129.069 + 0 + 6.725) - (67.485 + 0 + 18.065)
=50.244

When net working capital is negative, 0 is used.

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

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

Resources Connection's Operating Margin % for the quarter that ended in Aug. 2021 is calculated as:

Operating Margin %=Operating Income (Q: Aug. 2021 )/Revenue (Q: Aug. 2021 )
=18.018/183.14
=9.84 %

* 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.


Resources Connection Operating Income Related Terms

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Resources Connection Business Description

Resources Connection logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
17101 Armstrong Avenue, Suite 100, Irvine, CA, USA, 92614
Resources Connection Inc provides consulting and business initiative support services primarily through its operative subsidiary, Resources Global Professionals. The company offers transformation and improvement, financial reporting and analysis, strategy development, and program and project management services and support. Its clients operate in the accounting, finance, corporate governance, risk and compliance management, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, and legal and regulatory sectors.
Executives
Duchene Kate W director, officer: President & CEO C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Ryu Jennifer Y officer: CFO 17101 ARMSTRONG AVENUE IRVINE CA 92614
Pisano A Robert director C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Von Maltzan Marco director 17101 ARMSTRONG AVE #100 RGP IRVINE CA 92614
Crawford Susan J director 17101 ARMSTRONG AVE IRVINE CA 92614
Shih Anne director 17101 ARMSTRONG AVENUE IRVINE CA 92614
Wargotz Michael H director AXCESS WORLDWIDE 515 MADISON AVE., 15TH FLOOR NEW YORK NY 10022
Cherbak Anthony director 695 TOWN CENTER DRIVE SUITE 600 COSTA MESA CA 92626
Kistinger Robert F director 17101 ARMSTRONG AVE IRVINE CA 92614
Sykes Jolene director 695 TOWN CENTER DRIVE SUITE 606 COSTA MESA CA 92626
Dimick Neil F director BUILDING 4, TRIDENT PLACE MOSQUITO WAY HATFIELD, HERTFORDSHIRE X0 AL10 9UL
Brackney Timothy L officer: President and COO 12 ANDERSON WAY MENLO PARK CA 94025
Bower John D officer: Chief Accounting Officer C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Murray Donald B director RESOURCES CONNECTION 695 TOWN CTR DR STE 600 COSTA MESA CA 92626
Mueller Herbert M officer: CFO & EVP PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: MUELLER HERBERT M 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;}

Resources Connection Headlines

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