Millicom International Cellular (Millicom International Cellular) Operating Income : $772 Mil (TTM As of Dec. 2023)

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What is Millicom International Cellular Operating Income?

Millicom International Cellular's Operating Income for the three months ended in Dec. 2023 was $207 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $772 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Millicom International Cellular's Operating Income for the three months ended in Dec. 2023 was $207 Mil. Millicom International Cellular's Revenue for the three months ended in Dec. 2023 was $1,475 Mil. Therefore, Millicom International Cellular's Operating Margin % for the quarter that ended in Dec. 2023 was 14.03%.

Good Sign:

Millicom International Cellular SA operating margin is expanding. Margin expansion is usually a good sign.

Millicom International Cellular's 5-Year average Growth Rate for Operating Margin % was 9.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Millicom International Cellular's annualized ROC % for the quarter that ended in Dec. 2023 was -14.48%. Millicom International Cellular's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 21.78%.

Millicom International Cellular Operating Income Historical Data

The historical data trend for Millicom International Cellular'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.

Millicom International Cellular Operating Income Chart

Millicom International Cellular Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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436.00

243.00

405.00

883.00

773.00

Millicom International Cellular Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															230.00	179.00	188.00	198.00	207.00

Millicom International Cellular 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 Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $772 Mil.

Millicom International Cellular (NAS:TIGO) Operating Income Explanation

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

Millicom International Cellular's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	828 * ( 1 - 336.36% )	/	( (13502	+	13532)	/ 2 )
=	-1957.0608	/	13517
=	-14.48 %

where

	Invested Capital		(Q: Sep. 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	))
=	14457	-	1235	-	( 759	-	max(0, 2168	-	1888	+	759	))
=	13502

	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	))
=	14516	-	1397	-	( 775	-	max(0, 2329	-	1916	+	775	))
=	13532

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

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

Millicom International Cellular's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	860	/	( ( (3896 + max(-994, 0))	+	(4002 + max(-1158, 0)) )	/	2 )
=	860	/	( ( 3896	+	4002 )	/	2 )
=	860	/	3949
=	21.78 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(421	+	65	+	279)	-	(1235	+	167	+	357)
=	-994

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(443	+	45	+	273)	-	(1397	+	309	+	213)
=	-1158

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

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

Millicom International Cellular's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	207	/	1475
	=	14.03 %

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.

Millicom International Cellular Operating Income Related Terms

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Millicom International Cellular (Millicom International Cellular) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Millicom International Cellular SA (NAS:TIGO) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

TIGO SDB:Sweden TIGOs:UK 0GRK:UK M4M1:Germany M4M1:Germany M4M:Germany

Address

2, Rue du Fort Bourbon, Luxembourg, LUX, L-1249

Website

https://www.millicom.com

Millicom offers wireless and fixed-line telecom services primarily in smaller, less congested markets or in less developed countries in Latin America. Countries served include Bolivia (100% owned), Nicaragua (100%), Panama (100%), El Salvador (100%), Guatemala (100%), Paraguay (100%), Colombia (50%), Costa Rica (100%) and Honduras (67% but not controlled or consolidated in the firm's financial statements). The firm's fixed-line networks reach nearly 13 million homes while its wireless networks cover about 120 million people. Increasingly, Millicom offers a converged package that may include fixed-line phone, broadband, and pay television in conjunction with wireless services. The firm plans to carve out its infrastructure assets and mobile financial services business in 2023.