Whole Foods Market (Whole Foods Market) Operating Income : $677 Mil (TTM As of Jun. 2017)

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What is Whole Foods Market Operating Income?

Whole Foods Market's Operating Income for the three months ended in Jun. 2017 was $180 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2017 was $677 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Whole Foods Market's Operating Income for the three months ended in Jun. 2017 was $180 Mil. Whole Foods Market's Revenue for the three months ended in Jun. 2017 was $3,725 Mil. Therefore, Whole Foods Market's Operating Margin % for the quarter that ended in Jun. 2017 was 4.83%.

Whole Foods Market's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Whole Foods Market's annualized ROC % for the quarter that ended in Jun. 2017 was 8.84%. Whole Foods Market's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2017 was 21.18%.

Whole Foods Market Operating Income Historical Data

The historical data trend for Whole Foods Market'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.

Whole Foods Market Operating Income Chart

Whole Foods Market Annual Data

Trend

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

Operating Income

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744.00

883.00

934.00

861.00

857.00

Whole Foods Market Quarterly Data
	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17
Operating Income	Get a 7-Day Free Trial															209.00	155.00	171.00	171.00	180.00

Whole Foods Market 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 Jun. 2017 adds up the quarterly data reported by the company within the most recent 12 months, which was $677 Mil.

Whole Foods Market (NAS:WFM) Operating Income Explanation

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

Whole Foods Market's annualized ROC % for the quarter that ended in Jun. 2017 is calculated as:

	ROC % (Q: Jun. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2017 )	+	Invested Capital (Q: Jun. 2017 ))	/ count )
=	720 * ( 1 - 38.73% )	/	( (4991	+	4989)	/ 2 )
=	441.144	/	4990
=	8.84 %

where

	Invested Capital		(Q: Mar. 2017 )
=	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	))
=	6513	-	751	-	( 888	-	max(0, 1337	-	2108	+	888	))
=	4991

	Invested Capital		(Q: Jun. 2017 )
=	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	))
=	6610	-	754	-	( 999	-	max(0, 1324	-	2191	+	999	))
=	4989

Note: The Operating Income data used here is four times the quarterly (Jun. 2017) data.

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

Whole Foods Market's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2017 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2017 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2017		Q: Jun. 2017
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	736	/	( ( (3469 + max(-115, 0))	+	(3482 + max(-130, 0)) )	/	2 )
=	736	/	( ( 3469	+	3482 )	/	2 )
=	736	/	3475.5
=	21.18 %

where Working Capital is:

	Working Capital		(Q: Mar. 2017 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(255	+	508	+	457)	-	(751	+	0	+	584)
=	-115

	Working Capital		(Q: Jun. 2017 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(246	+	483	+	463)	-	(754	+	0	+	568)
=	-130

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2017) EBIT data.

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

Whole Foods Market's Operating Margin % for the quarter that ended in Jun. 2017 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2017 )	/	Revenue (Q: Jun. 2017 )
	=	180	/	3725
	=	4.83 %

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.

Whole Foods Market Operating Income Related Terms

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Whole Foods Market (Whole Foods Market) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Whole Foods Market Inc (NAS:WFM) » Definitions » Operating Income

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Address

Website

http://www.wholefoodsmarket.com

Whole Foods Market is the world's leading retailer of natural and organic foods by units and is the first certified organic grocer in the United States. Whole Foods' only operating segment consists of natural and organic foods supermarkets. As of fiscal 2016, the company had 456 stores in the United States, Canada, and the United Kingdom. The average store size is about 39,000 square feet. About 15% of the company's sales were derived from the sale of private-label products. The company announced a pending acquisition by Amazon in June 2017.

Executives

Scott F Powers	director	STATE STREET CORPORATION, ONE LINCOLN STREET, BOSTON MA 02111
Sharon Mccollam	director	C/O OFFICEMAX INCORPORATED, 263 SHUMAN BLVD., NAPERVILLE IL 60563
Ken C Hicks	director	150 N. ORANGE GROVE BLVD, PASADENA CA 91103
Mary Ellen Coe	director	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Gabrielle Sulzberger	director	450 LEXINGTON AVENUE, FLOOR 13, NEW YORK NY 10017
Glenda J Flanagan	officer: Executive Vice President	550 BOWIE STREET, AUSTIN TX 78703
Joseph D Mansueto	director	C/O MORNINGSTAR, INC., 225 WEST WACKER DRIVE, CHICAGO IL 60606
Robb Walter E Iv	director	550 BOWIE STREET, AUSTIN TX 78703
Ralph Z Sorenson	director	WHOLE FOODS MARKET, INC. 550 BOWIE STREET AUSTIN TX 78703
William A Tindell	director	500 FREEPORT PARKWAY, COPPELL TX 75019
Green Equity Investors V, L.p.	other: See General Remarks.	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Gei Capital V, Llc	other: See General Remarks.	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Green Equity Investors Side V, L.p.	other: See General Remarks.	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Green V Holdings, Llc	other: See General Remarks.	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Lgp Management Inc	other: See General Remarks.	11111 SANTA MONICA BLVD, STE 2000, LOS ANGELES CA 90025