S&P Global (S&P Global) Operating Income

: $4,053 Mil (TTM As of Dec. 2023)

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S&P Global's Operating Income for the three months ended in Dec. 2023 was $888 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $4,053 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. S&P Global's Operating Income for the three months ended in Dec. 2023 was $888 Mil. S&P Global's Revenue for the three months ended in Dec. 2023 was $3,152 Mil. Therefore, S&P Global's Operating Margin % for the quarter that ended in Dec. 2023 was 28.17%.

Warning Sign:

S&P Global Inc operating margin has been in a 5-year decline. The average rate of decline per year is -8.8%.

S&P Global's 5-Year average Growth Rate for Operating Margin % was -8.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. S&P Global's annualized ROC % for the quarter that ended in Dec. 2023 was 4.75%. S&P Global's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 542.48%.

S&P Global Operating Income Historical Data

The historical data trend for S&P Global'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.

S&P Global Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

3,177.00

3,601.00

4,210.00

3,019.00

4,054.00

S&P Global Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income																709.00	1,080.00	1,019.00	1,066.00	888.00

S&P Global 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 $4,053 Mil.

S&P Global (NYSE:SPGI) Operating Income Explanation

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

S&P Global'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 )
=	3552 * ( 1 - 18.89% )	/	( (60458	+	60893)	/ 2 )
=	2881.0272	/	60675.5
=	4.75 %

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	))
=	60561	-	517	-	( 1645	-	max(0, 5218	-	4804	+	1645	))
=	60458

	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	))
=	60589	-	678	-	( 1316	-	max(0, 6125	-	5143	+	1316	))
=	60893

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

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

S&P Global'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 )
=	3480	/	( ( (646 + max(-2012, 0))	+	(637 + max(-2251, 0)) )	/	2 )
=	3480	/	( ( 646	+	637 )	/	2 )
=	3480	/	641.5
=	542.48 %

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)
=	(2547	+	0	+	612)	-	(517	+	3022	+	1632)
=	-2012

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2826	+	0	+	1001)	-	(678	+	3461	+	1939)
=	-2251

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 %:

S&P Global'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 )
	=	888	/	3152
	=	28.17 %

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.

S&P Global Operating Income Related Terms

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

S&P Global (S&P Global) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » S&P Global Inc (NYSE:SPGI) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

SPGI:Mexico MHL:Germany MHL:Germany MHL:Germany SPGI34:Brazil

Address

55 Water Street, New York, NY, USA, 10041

Website

https://www.spglobal.com

S&P Global provides data and benchmarks to capital and commodity market participants. Its ratings business is the largest credit rating agency in the world and S&P's largest segment by profitability. S&P's largest segment by revenue is market intelligence, which provides desktop, data and advisory solutions, enterprise solutions, and credit/risk solutions mostly in the financial-services industry. S&P's other segments include commodity insights (Platts and other data), mobility (Carfax), and indexes.

Executives

Douglas L. Peterson	director, officer: CEO & President	MCGRAW HILL FINANCIAL, 1221 AVENUE OF THE AMERICAS, NEW YORK NY 10020
Saugata Saha	officer: President, S&P Global Platts	55 WATER STREET, NEW YORK NY 10041
Ewout L Steenbergen	officer: EVP & Chief Financial Officer	230 PARK AVENUE, NEW YORK NY 10169
Adam Jason Kansler	officer: President, Market Intelligence	C/O MARKIT LTD, 4TH FL, ROPEMAKER PLACE, 25 ROPEMAKER STREET, LONDON X0 EC2Y 9LY
Dimitra Manis	officer: Chief People Officer	55 WATER STREET, S&P GLOBAL, 45TH FLOOR, NEW YORK NY 10041
Steven J Kemps	officer: EVP, General Counsel	2515 MCKINNEY AVENUE, SUITE 1200, DALLAS TX 75201
Sally Moore	officer: EVP, Strategic Alliances	55 WATER STREET, NEW YORK NY 10041
Deborah D Mcwhinney	director	PO BOX 40 EAST BROADWAY, BUTTE MT 59701
Robert P Kelly	director	ONE MELLON CENTER, PITTSBURGH PA 15258-0001
Christopher Craig	officer: SVP and Controller	55 WATER STREET, LEGAL DEPARTMENT, NEW YORK NY 10041
Martina Cheung	officer: EMD, Head of Global Risk Svcs	55 WATER STREET, NEW YORK NY 10020
John L Berisford	officer: President, S&P Ratings	C/O THE PEPSI BOTTLING GROUP, INC., ONE PEPSI WAY, SOMERS NY 10589
Nancy Luquette	officer: SVP, Chief Risk & Audit Exec	S&P GLOBAL, 55 WATER STREET, NEW YORK NY 10041
Jacques Esculier	director	C/O AMERICAN STANDARD COMPANIES INC, ONE CENTENNIAL AVENUE, PISCATAWAY NJ 08855
Gay Huey Evans	director	SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084