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Healthcare Realty Trust (Healthcare Realty Trust) Operating Income : $54 Mil (TTM As of Dec. 2023)


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What is Healthcare Realty Trust Operating Income?

Healthcare Realty Trust's Operating Income for the three months ended in Dec. 2023 was $14 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $54 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Healthcare Realty Trust's Operating Income for the three months ended in Dec. 2023 was $14 Mil. Healthcare Realty Trust's Revenue for the three months ended in Dec. 2023 was $330 Mil. Therefore, Healthcare Realty Trust's Operating Margin % for the quarter that ended in Dec. 2023 was 4.36%.

Warning Sign:

Healthcare Realty Trust Inc operating margin has been in a 5-year decline. The average rate of decline per year is -23.5%.

Healthcare Realty Trust's 5-Year average Growth Rate for Operating Margin % was -23.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Healthcare Realty Trust's annualized ROC % for the quarter that ended in Dec. 2023 was 0.45%. Healthcare Realty Trust's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 22.29%.


Healthcare Realty Trust Operating Income Historical Data

The historical data trend for Healthcare Realty Trust'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.

Healthcare Realty Trust Operating Income Chart

Healthcare Realty Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 77.61 81.98 85.68 82.78 54.22

Healthcare Realty Trust 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 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 21.36 11.47 14.09 14.24 14.42

Healthcare Realty Trust 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 $54 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.


Healthcare Realty Trust  (NYSE:HR) Operating Income Explanation

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

Healthcare Realty Trust'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 )
=57.684 * ( 1 - 0% )/( (13261.236 + 12482.553)/ 2 )
=57.684/12871.8945
=0.45 %

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))
=13103.728 - 204.947 - ( 24.668 - max(0, 444.761 - 82.306+24.668))
=13261.236

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))
=12637.131 - 211.994 - ( 25.699 - max(0, 562.087 - 504.671+25.699))
=12482.553

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

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

Healthcare Realty Trust'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 )
=77.208/( ( (323.759 + max(-151.123, 0)) + (275.975 + max(93.069, 0)) )/ 2 )
=77.208/( ( 323.759 + 369.044 )/ 2 )
=77.208/346.4015
=22.29 %

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)
=(0 + 0 + 57.638) - (204.947 + 0 + 3.814)
=-151.123

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(180.069 + 0 + 125.289) - (211.994 + 0 + 0.29499999999996)
=93.069

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 %:

Healthcare Realty Trust'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 )
=14.421/330.441
=4.36 %

* 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.


Healthcare Realty Trust Operating Income Related Terms

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Healthcare Realty Trust (Healthcare Realty Trust) Business Description

Traded in Other Exchanges
Address
3310 West End Avenue, Suite 700, Nashville, TN, USA, 37203
Healthcare Realty Trust Inc is a healthcare facility real estate investment trust. The company focuses on owning, leasing, and managing outpatient facilities and other healthcare properties. The company considers merger and acquisition investment as a component of its operational growth strategy. It works with developers that have strong ties to a local health system and physicians. The company works to invest in outpatient facilities that are integral to a hospital's operations. It generates all of its revenue in the United States.
Executives
Robert E Hull officer: EVP - Investments 3310 WEST END AVENUE, SUITE 700, NASHVILLE TN 37203
Julie F. Wilson officer: EVP - Operations 3310 WEST END AVENUE, SUITE 700, ATTENTION: ANDREW LOOPE, NASHVILLE TN 37203
John Knox Singleton director
Kilroy James Joseph Iv director 3310 WEST END AVENUE, SUITE 700, NASHVILLE TN 37203
Nancy H Agee director PO BOX 13007, ROANOKE VA 24030
Ajay Gupta director 3310 WEST END AVENUE, SUITE 700, NASHVILLE TN 37203
Bryant John M Jr officer: EVP and General Counsel 3310 WEST END AVENUE, SUITE 700, NASHVILLE TN 37203
J Christopher Douglas officer: EVP and CFO 3310 WEST END AVENUE, SUITE 700, NASHVILLE TN 37203
Amanda L Callaway officer: SVP & Chief Accounting Officer 3310 WEST END AVENUE, SUITE 700, NASHVILLE TN 37203
Edward Hall Braman director 3310 WEST END AVENUE, SUITE 700, NASHVILLE TN 37203
Todd J Meredith director, officer: President and CEO 3310 WEST END AVENUE, SUITE 700, NASHVILLE TN 37203
Christann M Vasquez director 3310 WEST END AVENUE, SUITE 700, NASHVILLE TN 37203
Lyle Peter F Sr director 3310 WEST END AVENUE, SUITE 700, NASHVILLE TN 37203
John V Abbott director 3310 WEST END AVENUE, SUITE 700, NASHVILLE TN 37203
Reshma Block director 16435 N SCOTTSDALE ROAD, SUITE 320, SCOTTSDALE AZ 85254