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GEA Group AG Operating Income

: $405 Mil (TTM As of Sep. 2021)
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GEA Group AG's Operating Income for the three months ended in Sep. 2021 was $138 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2021 was $405 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. GEA Group AG's Operating Income for the three months ended in Sep. 2021 was $138 Mil. GEA Group AG's Revenue for the three months ended in Sep. 2021 was $1,411 Mil. Therefore, GEA Group AG's Operating Margin % for the quarter that ended in Sep. 2021 was 9.76%.

Warning Sign:

GEA Group AG operating margin has been in 5-year decline. The average rate of decline per year is -7.5%.

GEA Group AG's 5-Year average Growth Rate for Operating Margin % was -7.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. GEA Group AG's annualized ROC % for the quarter that ended in Sep. 2021 was 8.21%. GEA Group AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2021 was 78.82%.


GEA Group AG Operating Income Historical Data

The historical data trend for GEA Group AG'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.

GEA Group AG 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 364.77 397.39 339.68 199.01 331.09

GEA Group AG 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 90.92 78.93 70.28 118.11 137.68

GEA Group AG 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 $405 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.


GEA Group AG  (OTCPK:GEAGF) Operating Income Explanation

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

GEA Group AG'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 )
=550.70117647059 * ( 1 - 24.13% )/( (5104.4325301205 + 5073.5541176471)/ 2 )
=417.81698258824/5088.9933238838
=8.21 %

where

Invested Capital(Q: Jun. 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))
=6748.9975903614 - 814.3265060241 - ( 1022.7192771084 - max(0, 2480.2253012048 - 3310.4638554217+1022.7192771084))
=5104.4325301205

Invested Capital(Q: Sep. 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))
=6799.8541176471 - 800.10470588235 - ( 1174.8917647059 - max(0, 2556.8058823529 - 3483.0011764706+1174.8917647059))
=5073.5541176471

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

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

GEA Group AG'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 )
=578.19294117647/( ( (743.59759036145 + max(-192.48072289157, 0)) + (723.44352941176 + max(-248.69647058824, 0)) )/ 2 )
=578.19294117647/( ( 743.59759036145 + 723.44352941176 )/ 2 )
=578.19294117647/733.52055988661
=78.82 %

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)
=(815.35542168675 + 839.16024096386 + 633.22891566265) - (814.3265060241 + 0 + 1665.8987951807)
=-192.48072289157

Working Capital(Q: Sep. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(739.65764705882 + 843.30117647059 + 725.15058823529) - (800.10470588235 + 0 + 1756.7011764706)
=-248.69647058824

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 %:

GEA Group AG'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 )
=137.67529411765/1410.9682352941
=9.76 %

* 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.


GEA Group AG Operating Income Related Terms

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GEA Group AG Business Description

GEA Group AG logo
Industry
Industrials » Industrial Products NAICS : 333999 SIC : 3559
Traded in Other Exchanges
Address
Peter-Muller-Strasse 12, Dusseldorf, DEU, 40468
GEA is an expert in food processing. It manufactures equipment for separation, fluid handling, dairy processing, and dairy farming, and designs and constructs process lines or entire plants for customers. Based in Germany, the company is a global market leader, with number-one or number-two positions in its markets. Its separators are used in hundreds of different, tailored applications. Every fourth litre of milk, third instant coffee line, third chicken nugget, and second litre of beer globally is processed using the company's specialised equipment.
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