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Korn Ferry Operating Income

: $418 Mil (TTM As of Jan. 2022)
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Korn Ferry's Operating Income for the three months ended in Jan. 2022 was $126 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2022 was $418 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Korn Ferry's Operating Income for the three months ended in Jan. 2022 was $126 Mil. Korn Ferry's Revenue for the three months ended in Jan. 2022 was $685 Mil. Therefore, Korn Ferry's Operating Margin % for the quarter that ended in Jan. 2022 was 18.44%.

Good Sign:

Korn Ferry operating margin is expanding. Margin expansion is usually a good sign.

Korn Ferry's 5-Year average Growth Rate for Operating Margin % was 7.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Korn Ferry's annualized ROC % for the quarter that ended in Jan. 2022 was 22.69%. Korn Ferry's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2022 was 152.75%.


Korn Ferry Operating Income Historical Data

The historical data trend for Korn Ferry'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.

Korn Ferry Annual Data
Trend Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21
Operating Income
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 154.89 208.52 140.83 234.58 186.52

Korn Ferry Quarterly Data
Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22
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 65.99 86.25 101.26 103.78 126.29

Korn Ferry 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 Jan. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $418 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.


Korn Ferry  (NYSE:KFY) Operating Income Explanation

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

Korn Ferry's annualized ROC % for the quarter that ended in Jan. 2022 is calculated as:

ROC % (Q: Jan. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2021 ) + Invested Capital (Q: Jan. 2022 ))/ count )
=505.16 * ( 1 - 24.05% )/( (1667.368 + 1714.929)/ 2 )
=383.66902/1691.1485
=22.69 %

where

Invested Capital(Q: Oct. 2021 )
=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))
=3117.488 - 647.233 - ( 802.887 - max(0, 697.069 - 1549.236+802.887))
=1667.368

Invested Capital(Q: Jan. 2022 )
=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))
=3336.096 - 804.568 - ( 919.615 - max(0, 851.151 - 1667.75+919.615))
=1714.929

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

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

Korn Ferry's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2022 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2021  Q: Jan. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=476.052/( ( (275.68 + max(61.601, 0)) + (286.016 + max(-98.141, 0)) )/ 2 )
=476.052/( ( 337.281 + 286.016 )/ 2 )
=476.052/311.6485
=152.75 %

where Working Capital is:

Working Capital(Q: Oct. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(608.141 + 0 + 100.693) - (647.233 + 0 + 0)
=61.601

Working Capital(Q: Jan. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(603.346 + 0 + 103.081) - (804.568 + 0 + 0)
=-98.141

When net working capital is negative, 0 is used.

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

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

Korn Ferry's Operating Margin % for the quarter that ended in Jan. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Jan. 2022 )/Revenue (Q: Jan. 2022 )
=126.29/684.956
=18.44 %

* 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.


Korn Ferry Operating Income Related Terms

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


Korn Ferry Business Description

Korn Ferry logo
Industry
Industrials » Business Services NAICS : 561311 SIC : 7361
Traded in Other Exchanges
Address
1900 Avenue of the Stars, Suite 2600, Los Angeles, CA, USA, 90067
Korn Ferry is a United States-based firm engaged in organizational consulting and management recruitment that helps clients fill mid- to high-level management positions. The largest of its revenue segments is its advisory segment, which provides consulting services related to organizational structure. The executive search segment provides executive-level talent sourcing. The recruitment process outsourcing and professional search segment provide broad-level talent sourcing and digital segment. The company has operations in North America, Asia-Pacific, Latin America, and other regions.
Executives
Burnison Gary D director, officer: CEO C/O KORN FERRY INTERNATIONAL 800 CENTURY PARK EAST STE 900 LOS ANGELES CA 90067
Gold Christina A director C/O ITT CORPORATION 1133 WESTCHESTER AVENUE WHITE PLAINS NY 10604
Martinez Angel R director C/O TUPPERWARE BRANDS CORP PO BOX 2353 ORLANDO FL 32802-2353
Beneby Doyle N director C/O KORN FERRY INTERNATIONAL 1900 AVENUE OF THE STARS, SUITE 2600 LOS ANGELES CA 90067
Shaheen George T director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SHAHEEN GEORGE T a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Perry Debra J director 515 RIDGEWOOD AVENUE GLEN RIDGE NJ 07028
Leamon Jerry director C/O KORN/FERRY INTERNATIONAL 1900 AVENUE OF THE STARS, SUITE 2600 LOS ANGELES CA 90067
Robinson Lori Jean director 5875 LANDERBROOK DRIVE SUITE 220 CLEVELAND OH 44124
Rozek Robert P officer: EVP, CFO & CCO 343 STATE STREET ROCHESTER NY 146500211
Mulrooney Byrne K officer: CEO-RPO, Pro. Srch. & Dig. 2050 SPECTRUM BOULEVARD FT. LAUDERDALE FL 33309
Arian Mark officer: CEO of Advisory C/O KORN/FERRY INTERNATIONAL 1900 AVE. OF THE STARS, SUITE 2600 LOS ANGELES CA 90067
Lauer Len J director 2001 EDMUND HALLEY DRIVE RESTON VA 20191
Floyd William R director ONE THOUSAND BEVERLY WAY FORT SMITH AR 72919
Kaye Stephen D officer: CEO of Hay Group C/O KORN FERRY INTERNATIONAL 1900 AVENUE OF THE STARS, SUITE 2600 LOS ANGELES CA 90067
Hg (bermuda) Ltd 10 percent owner SE PEARMAN BUILDING, 3RD FLOOR 9 PAR-LA-VILLE ROAD HAMILTON D0 HM 08

Korn Ferry Headlines

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