Fisher & Paykel Healthcare (NZSE:FPH) Operating Income : NZ$271 Mil (TTM As of Sep. 2023)

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What is Fisher & Paykel Healthcare Operating Income?

Fisher & Paykel Healthcare's Operating Income for the six months ended in Sep. 2023 was NZ$110 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was NZ$271 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Fisher & Paykel Healthcare's Operating Income for the six months ended in Sep. 2023 was NZ$110 Mil. Fisher & Paykel Healthcare's Revenue for the six months ended in Sep. 2023 was NZ$816 Mil. Therefore, Fisher & Paykel Healthcare's Operating Margin % for the quarter that ended in Sep. 2023 was 13.52%.

Warning Sign:

Fisher & Paykel Healthcare Corp Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.3%.

Fisher & Paykel Healthcare's 5-Year average Growth Rate for Operating Margin % was -4.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Fisher & Paykel Healthcare's annualized ROC % for the quarter that ended in Sep. 2023 was 8.48%. Fisher & Paykel Healthcare's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 18.02%.

Fisher & Paykel Healthcare Operating Income Historical Data

The historical data trend for Fisher & Paykel Healthcare'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.

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Fisher & Paykel Healthcare Operating Income Chart

Fisher & Paykel Healthcare Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Operating Income

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247.60

328.00

604.30

370.30

240.70

Fisher & Paykel Healthcare Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Operating Income	Get a 7-Day Free Trial															236.00	134.30	80.10	160.60	110.30

Fisher & Paykel Healthcare 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. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was NZ$271 Mil.

Fisher & Paykel Healthcare (NZSE:FPH) Operating Income Explanation

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

Fisher & Paykel Healthcare's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	220.6 * ( 1 - 23.68% )	/	( (1863.8	+	2106.6)	/ 2 )
=	168.36192	/	1985.2
=	8.48 %

where

	Invested Capital		(Q: Mar. 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	))
=	2204.5	-	219.7	-	( 121	-	max(0, 289.8	-	774.2	+	121	))
=	1863.8

	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	))
=	2389.8	-	212.7	-	( 70.5	-	max(0, 286.8	-	729.2	+	70.5	))
=	2106.6

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

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

Fisher & Paykel Healthcare's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	298.6	/	( ( (1148.2 + max(350.7, 0))	+	(1419.4 + max(395.7, 0)) )	/	2 )
=	298.6	/	( ( 1498.9	+	1815.1 )	/	2 )
=	298.6	/	1657
=	18.02 %

where Working Capital is:

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(184.5	+	365.8	+	68.9)	-	(219.7	+	6.6	+	42.2)
=	350.7

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(233.2	+	360.1	+	65.4)	-	(212.7	+	4.6	+	45.7)
=	395.7

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

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

Fisher & Paykel Healthcare's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	110.3	/	815.8
	=	13.52 %

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.

Fisher & Paykel Healthcare Operating Income Related Terms

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

Fisher & Paykel Healthcare (NZSE:FPH) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Fisher & Paykel Healthcare Corp Ltd (NZSE:FPH) » Definitions » Operating Income

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FSPKF:USA FPLB:Germany FPH:Australia

Address

15 Maurice Paykel Place, East Tamaki, Auckland, NTL, NZL, 2013

Website

https://www.fphcare.com

Fisher & Paykel Healthcare is one of the three largest respiratory care device companies globally. It is the market leader in hospital use humidifiers, masks and related consumables and the number three player in the at-home treatment of sleep apnoea using respiratory devices. Both the hospital and homecare markets for respiratory devices are growing strongly in the developed markets in which Fisher & Paykel has a presence. The company earns 42% of its revenue in the U.S., 32% in Europe, 18% in Asia-Pacific and the remaining 8% in emerging markets. Fisher conducts its own R&D and has thousands of patents and pending applications. It manufactures in New Zealand and Mexico and has a multichannel distribution model.