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GCP Applied Technologies (GCP Applied Technologies) Operating Income : $72.4 Mil (TTM As of Jun. 2022)


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What is GCP Applied Technologies Operating Income?

GCP Applied Technologies's Operating Income for the three months ended in Jun. 2022 was $21.4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2022 was $72.4 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. GCP Applied Technologies's Operating Income for the three months ended in Jun. 2022 was $21.4 Mil. GCP Applied Technologies's Revenue for the three months ended in Jun. 2022 was $268.4 Mil. Therefore, GCP Applied Technologies's Operating Margin % for the quarter that ended in Jun. 2022 was 7.97%.

GCP Applied Technologies'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. GCP Applied Technologies's annualized ROC % for the quarter that ended in Jun. 2022 was 7.44%. GCP Applied Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2022 was 16.72%.


GCP Applied Technologies Operating Income Historical Data

The historical data trend for GCP Applied Technologies'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.

GCP Applied Technologies Operating Income Chart

GCP Applied Technologies Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 100.60 100.30 110.90 93.40 89.30

GCP Applied Technologies Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Operating Income Get a 7-Day Free Trial 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 28.90 25.30 15.20 10.50 21.40

GCP Applied Technologies 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. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $72.4 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.


GCP Applied Technologies  (NYSE:GCP) Operating Income Explanation

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

GCP Applied Technologies's annualized ROC % for the quarter that ended in Jun. 2022 is calculated as:

ROC % (Q: Jun. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2022 ) + Invested Capital (Q: Jun. 2022 ))/ count )
=85.6 * ( 1 - 33.33% )/( (775 + 759.9)/ 2 )
=57.06952/767.45
=7.44 %

where

Note: The Operating Income data used here is four times the quarterly (Jun. 2022) data.

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

GCP Applied Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2022 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2022  Q: Jun. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=64.8/( ( (264.4 + max(123.1, 0)) + (257.1 + max(130.3, 0)) )/ 2 )
=64.8/( ( 387.5 + 387.4 )/ 2 )
=64.8/387.45
=16.72 %

where Working Capital is:

Working Capital(Q: Mar. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(168.4 + 143.5 + 15.4) - (179.2 + 0 + 25)
=123.1

Working Capital(Q: Jun. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(170.5 + 149.1 + 12.6) - (177.4 + 0 + 24.5)
=130.3

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2022) EBIT data.

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

GCP Applied Technologies's Operating Margin % for the quarter that ended in Jun. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2022 )/Revenue (Q: Jun. 2022 )
=21.4/268.4
=7.97 %

* 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.


GCP Applied Technologies Operating Income Related Terms

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GCP Applied Technologies (GCP Applied Technologies) Business Description

Traded in Other Exchanges
N/A
Address
2325 Lakeview Parkway, Alpharetta, GA, USA, 30009
GCP Applied Technologies Inc is a provider of construction products and technologies. Its business is spread across two segments. Its Specialty Construction Chemicals segment manufactures and markets products to reduce the cost and improve the performance of cement, concrete, mason and other cement-based construction materials. Its Specialty Building Materials segment creates products that protect structures from water, air, vapor, and fire damage. It generates maximum revenue from the Specialty Construction Chemicals segment. Geographically, it derives a majority of revenue from the United States.
Executives
James Waddell officer: Chief Accounting Officer C/O GCP APPLIED TECHNOLOGIES INC., 62 WHITTEMORE AVENUE, CAMBRIDGE MA 02140
G Holdings Inc. 10 percent owner 1 CAMPUS DRIVE, PARSIPPANY NJ 07054
Standard Industries Holdings Inc. 10 percent owner 1 CAMPUS DRIVE, PARSIPPANY NJ 07054
G-i Holdings Inc. 10 percent owner 1 CAMPUS DRIVE, PARSIPPANY NJ 07054
Dalbergia Investments Llc 10 percent owner 1 CAMPUS DRIVE, PARSIPPANY NJ 07054
G Holdings Llc 10 percent owner 1 CAMPUS DRIVE, PARSIPPANY NJ 07054
Standard Industries Inc. 10 percent owner 1 CAMPUS DRIVE,, PARSIPPANY NJ 07054
Lauzon Armand F Jr director 227 WEST MONROE STREET, SUITE 2600, CHICAGO IL 60606
Simon Bates director, officer: See Remarks 62 WHITTEMORE AVE, CAMBRIDGE MA 02140
David J. Millstone 10 percent owner C/O 40 NORTH MANAGEMENT LLC, 9 WEST 57TH STREET, 47TH FLOOR, NEW YORK NY 10019
Andrew M Ross director 6060 PARKLAND BLVD, MAYFIELD VILLAGE OH 44124
David S. Winter 10 percent owner C/O 40 NORTH MANAGEMENT LLC, 9 WEST 57TH STREET, 47TH FLOOR, NEW YORK NY 10019
Robert H Yanker director 3505 RIVERLY ROAD, ATLANTA GA 30327
Janet Plaut Giesselman director 25435 HARVARD RD., BEACHWOOD OH 44122
Si Gp Iii Llc 10 percent owner 9 WEST 57TH STREET, 47TH FLOOR, NEW YORK NY 10019