Natural Grocers by Vitamin Cottage (Natural Grocers by Vitamin Cottage) Operating Income : $38 Mil (TTM As of Dec. 2023)

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What is Natural Grocers by Vitamin Cottage Operating Income?

Natural Grocers by Vitamin Cottage's Operating Income for the three months ended in Dec. 2023 was $11 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $38 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Natural Grocers by Vitamin Cottage's Operating Income for the three months ended in Dec. 2023 was $11 Mil. Natural Grocers by Vitamin Cottage's Revenue for the three months ended in Dec. 2023 was $302 Mil. Therefore, Natural Grocers by Vitamin Cottage's Operating Margin % for the quarter that ended in Dec. 2023 was 3.76%.

Good Sign:

Natural Grocers by Vitamin Cottage Inc operating margin is expanding. Margin expansion is usually a good sign.

Natural Grocers by Vitamin Cottage's 5-Year average Growth Rate for Operating Margin % was 8.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Natural Grocers by Vitamin Cottage's annualized ROC % for the quarter that ended in Dec. 2023 was 6.30%. Natural Grocers by Vitamin Cottage's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 8.28%.

Natural Grocers by Vitamin Cottage Operating Income Historical Data

The historical data trend for Natural Grocers by Vitamin Cottage'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.

Natural Grocers by Vitamin Cottage Operating Income Chart

Natural Grocers by Vitamin Cottage Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

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18.12

29.29

29.25

31.26

33.68

Natural Grocers by Vitamin Cottage 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															6.87	8.68	9.45	8.68	11.34

Natural Grocers by Vitamin Cottage 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 $38 Mil.

Natural Grocers by Vitamin Cottage (NYSE:NGVC) Operating Income Explanation

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

Natural Grocers by Vitamin Cottage'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 )
=	45.364 * ( 1 - 21.74% )	/	( (558.791	+	567.409)	/ 2 )
=	35.5018664	/	563.1
=	6.30 %

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	))
=	669.185	-	111.873	-	( 18.342	-	max(0, 154.029	-	152.55	+	18.342	))
=	558.791

	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	))
=	663.157	-	111.355	-	( 13.62	-	max(0, 158.866	-	143.259	+	13.62	))
=	567.409

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

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

Natural Grocers by Vitamin Cottage'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 )
=	43.212	/	( ( (502.111 + max(20.469, 0))	+	(505.469 + max(16.063, 0)) )	/	2 )
=	43.212	/	( ( 522.58	+	521.532 )	/	2 )
=	43.212	/	522.056
=	8.28 %

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)
=	(10.797	+	119.26	+	4.151)	-	(111.873	+	1.866	+	-2.8421709430404E-14)
=	20.469

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(9.324	+	116.077	+	4.238)	-	(111.355	+	2.221	+	0)
=	16.063

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 %:

Natural Grocers by Vitamin Cottage'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 )
	=	11.341	/	301.75
	=	3.76 %

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.

Natural Grocers by Vitamin Cottage Operating Income Related Terms

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Natural Grocers by Vitamin Cottage (Natural Grocers by Vitamin Cottage) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Natural Grocers by Vitamin Cottage Inc (NYSE:NGVC) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N2V:Germany

Address

12612 West Alameda Parkway, Lakewood, CO, USA, 80228

Website

https://www.naturalgrocers.com

Natural Grocers by Vitamin Cottage Inc operates natural and organic grocery and dietary supplement stores. It offers the following product categories, natural and organic food, dietary supplements, natural body care, household, pet care products, books and handouts. The company generates the majority of its revenue from grocery products and dietary supplements and rest from other products.

Executives

Todd Dissinger	officer: Chief Financial Officer	C/O NATURAL GROCERS BY VITAMIN COTTAGE, 12612 W. ALAMEDA PKWY., LAKEWOOD CO 80228
Dyami Isely-parvanta	other: 13D Group Member	12612 WEST ALAMEDA PKWY., LAKEWOOD CO 80228
Zephyr Isely 2012 Irrevocable Family Trust	other: 13D Group Member	PO BOX 260169, LAKEWOOD CO 80226-0169
Elizabeth Isely 2012 Irrevocable Family Trust	other: 13D Group Member	PO BOX 260169, LAKEWOOD CO 80226-0169
Kemper & Virginia Isely 2012 Irrevocable Family Trust	other: 13D Group Member	PO BOX 260169, LAKEWOOD CO 80226-0169
Heather C. Isely 2012 Irrevocable Family Trust	other: 13D Group Member	PO BOX 260169, LAKEWOOD CO 80226-0169
Robert Linnane	other: 13D Group Member	12612 WEST ALAMEDA PARKWAY, LAKEWOOD CO 80228
Charles Isely-rice	other: 13D Group Member	12612 WEST ALAMEDA PKWY, LAKEWOOD CO 80228
David C. Rooney	director	12612 W. ALAMEDA PKWY., LAKEWOOD CO 80228
Ritchie K. Isely	other: 13D Group Member	12612 WEST ALAMEDA PARKWAY, LAKEWOOD CO 80228
Masala Isely-rice	other: 13D Group Member	12612 WEST ALAMEDA PARKWAY, LAKEWOOD CO 80228
Charity Isely	other: 13D Group Member	12612 W. ALAMEDA PARKWAY, LAKEWOOD CO 80228
Sandra Buffa	officer: Chief Financial Officer	12612 W. ALAMEDA PARKWAY, LAKEWOOD CO 80228
Elizabeth Isely	director, officer: Executive Vice President	12612 W. ALAMEDA PARKWAY, LAKEWOOD CO 80228
Kemper Isely	director, officer: Chairman & Co-President	12612 W. ALAMEDA PARKWAY, LAKEWOOD CO 80228