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IHS Markit Operating Income

: $1,148 Mil (TTM As of Aug. 2021)
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IHS Markit's Operating Income for the three months ended in Aug. 2021 was $318 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2021 was $1,148 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. IHS Markit's Operating Income for the three months ended in Aug. 2021 was $318 Mil. IHS Markit's Revenue for the three months ended in Aug. 2021 was $1,181 Mil. Therefore, IHS Markit's Operating Margin % for the quarter that ended in Aug. 2021 was 26.91%.

Good Sign:

IHS Markit Ltd operating margin is expanding. Margin expansion is usually a good sign.

IHS Markit's 5-Year average Growth Rate for Operating Margin % was 14.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. IHS Markit's annualized ROC % for the quarter that ended in Aug. 2021 was 5.58%. IHS Markit's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2021 was 84.74%.


IHS Markit Operating Income Historical Data

The historical data trend for IHS Markit'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.

IHS Markit Annual Data
Trend Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20
Operating Income
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 444.40 644.10 777.80 1,091.10 1,356.90

IHS Markit Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
Operating Income 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 Premium Member Only Premium Member Only Premium Member Only 282.00 266.60 247.50 316.60 317.70

IHS Markit 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 Aug. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,148 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.


IHS Markit  (NYSE:INFO) Operating Income Explanation

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

IHS Markit's annualized ROC % for the quarter that ended in Aug. 2021 is calculated as:

ROC % (Q: Aug. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: May. 2021 ) + Invested Capital (Q: Aug. 2021 ))/ count )
=1270.8 * ( 1 - 30.37% )/( (16061 + 15677.9)/ 2 )
=884.85804/15869.45
=5.58 %

where

Note: The Operating Income data used here is four times the quarterly (Aug. 2021) data.

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

IHS Markit's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2021 is calculated as:

ROC (Joel Greenblatt) %(Q: Aug. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: May. 2021  Q: Aug. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1163.6/( ( (963.1 + max(265.9, 0)) + (952.8 + max(564.5, 0)) )/ 2 )
=1163.6/( ( 1229 + 1517.3 )/ 2 )
=1163.6/1373.15
=84.74 %

where Working Capital is:

Working Capital(Q: May. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(870.9 + 0 + 1094.5) - (443.3 + 1009.5 + 246.7)
=265.9

Working Capital(Q: Aug. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(857.8 + 0 + 1463.3) - (480.7 + 939.7 + 336.2)
=564.5

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Aug. 2021) EBIT data.

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

IHS Markit's Operating Margin % for the quarter that ended in Aug. 2021 is calculated as:

Operating Margin %=Operating Income (Q: Aug. 2021 )/Revenue (Q: Aug. 2021 )
=317.7/1180.5
=26.91 %

* 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.


IHS Markit Operating Income Related Terms

Thank you for viewing the detailed overview of IHS Markit's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


IHS Markit Business Description

IHS Markit logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.

IHS Markit Headlines

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