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Penske Automotive Group Operating Income

: $1,243 Mil (TTM As of Sep. 2021)
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Penske Automotive Group's Operating Income for the three months ended in Sep. 2021 was $378 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2021 was $1,243 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Penske Automotive Group's Operating Income for the three months ended in Sep. 2021 was $378 Mil. Penske Automotive Group's Revenue for the three months ended in Sep. 2021 was $6,497 Mil. Therefore, Penske Automotive Group's Operating Margin % for the quarter that ended in Sep. 2021 was 5.81%.

Good Sign:

Penske Automotive Group Inc operating margin is expanding. Margin expansion is usually a good sign.

Penske Automotive Group's 5-Year average Growth Rate for Operating Margin % was 2.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Penske Automotive Group's annualized ROC % for the quarter that ended in Sep. 2021 was 10.91%. Penske Automotive Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2021 was 35.45%.


Penske Automotive Group Operating Income Historical Data

The historical data trend for Penske Automotive Group'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.

Penske Automotive Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Operating Income
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 574.90 611.40 664.90 652.70 704.50

Penske Automotive Group Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 284.20 242.50 219.60 402.70 377.80

Penske Automotive Group 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 Sep. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,243 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.


Penske Automotive Group  (NYSE:PAG) Operating Income Explanation

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

Penske Automotive Group's annualized ROC % for the quarter that ended in Sep. 2021 is calculated as:

ROC % (Q: Sep. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2021 ) + Invested Capital (Q: Sep. 2021 ))/ count )
=1511.2 * ( 1 - 25.23% )/( (10428.5 + 10285.9)/ 2 )
=1129.92424/10357.2
=10.91 %

where

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

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

Penske Automotive Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2021 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2021  Q: Sep. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1993.2/( ( (4854.9 + max(838.1, 0)) + (4789.5 + max(763.6, 0)) )/ 2 )
=1993.2/( ( 5693 + 5553.1 )/ 2 )
=1993.2/5623.05
=35.45 %

where Working Capital is:

Working Capital(Q: Jun. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(913.3 + 2936.9 + 126.9) - (3138.5 + 0 + 0.5)
=838.1

Working Capital(Q: Sep. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(737.7 + 2598.4 + 121.4) - (2693.4 + 0 + 0.5)
=763.6

When net working capital is negative, 0 is used.

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

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

Penske Automotive Group's Operating Margin % for the quarter that ended in Sep. 2021 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2021 )/Revenue (Q: Sep. 2021 )
=377.8/6497.3
=5.81 %

* 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.


Penske Automotive Group Operating Income Related Terms

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Penske Automotive Group Business Description

Penske Automotive Group logo
Industry
Consumer Cyclical » Vehicles & Parts NAICS : 441110 SIC : 5511
Traded in Other Exchanges
Address
2555 Telegraph Road, Bloomfield Hills, MI, USA, 48302-0954
Penske Automotive Group operates in 22 U.S. states and overseas. It has 143 U.S. light-vehicle franchises including in Puerto Rico as well as 161 franchises overseas, primarily in the United Kingdom. The company is the second- largest U.S.-based dealership in terms of light-vehicle revenue and sells more than 35 brands, with 93% of retail automotive revenue coming from luxury and import names. Other services, in addition to new and used vehicles, are parts and repair and finance and insurance. The firm's Premier Truck Group owns 35 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 19 CarShop used-vehicle stores in the U.S. and U.K. The company is based in Michigan and was called United Auto Group before changing its name in 2007.
Executives
Carlson John D. Jr. officer: EVP & CFO 2555 TELEGRAPH RD. BLOOMFIELD HILLS MI 48302
Barr John director 2555 TELEGRAPH ROAD BLOOMFIELD HILLS MI 48302-0954
Spradlin Shane M. officer: EVP, Gen. Counsel & Sec. 2555 TELEGRAPH RD. BLOOMFIELD HILLS MI 48302
Penske Roger S director, 10 percent owner, officer: Chair & CEO 2555 TELEGRAPH ROAD BLOOMFIELD HILLS MI 48302-0954
Denker Claude H Iii officer: EVP - Human Resources 2555 TELEGRAPH RD BLOOMFIELD HILLS MI 48302
Kurnick Robert H Jr director, officer: President 2555 TELEGRAPH ROAD BLOOMFIELD HILLS MI 48302-0954
Penske Gregory W director 3534 NORTH PECK ROAD EL MONTE CA 91731
Pierce Sandra E. director 2555 TELEGRAPH RD. BLOOMFIELD HILLS MI 48302
Duerheimer Wolfgang director 2555 TELEGRAPH RD BLOOMFIELD HILLS MI 48302
Penske Roger S Jr director 2555 TELEGRAPH ROAD BLOOMFIELD HILLS MI 48302
Mcwaters Kimberly J director 20410 NORTH 19TH AVENUE PHOENIX AZ 85027
Smith Greg C director FORD MOTOR COMPANY 21175 OAKWOOD BLVD DEARBORN MI 48124
Davis Lisa Ann director 2555 TELEGRAPH RD BLOOMFIELD HILLS MI 48302
Eisenson Michael R director C/O CHARLESBANK CAPITAL PARTNERS 600 ATLANTIC AV 28TH FL BOSTON MA 02210
Thompson H Brian director 1950 OLD GALLOWS ROAD SUITE 201 VIENNA VA 22182

Penske Automotive Group Headlines

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