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Pernod Ricard Operating Income

: $2,474 Mil (TTM As of Jun. 2020)
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Pernod Ricard's Operating Income for the six months ended in Jun. 2020 was $463 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2020 was $2,474 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Pernod Ricard's Operating Income for the six months ended in Jun. 2020 was $463 Mil. Pernod Ricard's Revenue for the six months ended in Jun. 2020 was $3,348 Mil. Therefore, Pernod Ricard's Operating Margin % for the quarter that ended in Jun. 2020 was 13.82%.

Good Sign:

Pernod Ricard SA operating margin is expanding. Margin expansion is usually a good sign.

Pernod Ricard's 5-Year average Growth Rate for Operating Margin % was 0.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Pernod Ricard's annualized ROC % for the quarter that ended in Jun. 2020 was 2.44%. Pernod Ricard's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2020 was -17.96%.


Pernod Ricard Operating Income Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Pernod Ricard Annual Data
Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2,550.56 2,706.74 2,780.37 2,879.10 2,474.10

Pernod Ricard Semi-Annual Data
Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20
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 971.96 1,863.48 1,028.25 1,984.44 462.84

Pernod Ricard 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.

For stock reported semi-annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Jun. 2020 was $2,474 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Pernod Ricard  (OTCPK:PDRDF) Operating Income Explanation

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

Pernod Ricard's annualized ROC % for the quarter that ended in Jun. 2020 is calculated as:

ROC % (Q: Jun. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2019 ) + Invested Capital (Q: Jun. 2020 ))/ count )
=925.67567567568 * ( 1 - 19.14% )/( (31190 + 30239.864864865)/ 2 )
=748.50135135135/30714.932432432
=2.44 %

where

Invested Capital(Q: Dec. 2019 )
=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))
=36394.444444444 - 3924.4444444444 - ( 1280 - max(0, 5660 - 10970+1280))
=31190

Invested Capital(Q: Jun. 2020 )
=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))
=35501.126126126 - 3082.2072072072 - ( 2179.0540540541 - max(0, 5155.4054054054 - 10779.279279279+2179.0540540541))
=30239.864864865

Note: The Operating Income data used here is two times the semi-annual (Jun. 2020) data.

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

Pernod Ricard's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2020 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2020 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2019  Q: Jun. 2020
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-1540.5405405405/( ( (3444.4444444444 + max(5437.7777777778, 0)) + (3485.3603603604 + max(4786.036036036, 0)) )/ 2 )
=-1540.5405405405/( ( 8882.2222222222 + 8271.3963963964 )/ 2 )
=-1540.5405405405/8576.8093093093
=-17.96 %

where Working Capital is:

Working Capital(Q: Dec. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2398.8888888889 + 6717.7777777778 + 573.33333333333) - (3924.4444444444 + 0 + 327.77777777778)
=5437.7777777778

Working Capital(Q: Jun. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1020.2702702703 + 6944.8198198198 + 635.13513513513) - (3082.2072072072 + 0 + 731.98198198198)
=4786.036036036

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2020) EBIT data.

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

Pernod Ricard's Operating Margin % for the quarter that ended in Jun. 2020 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2020 )/Revenue (Q: Jun. 2020 )
=462.83783783784/3347.972972973
=13.82 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Pernod Ricard Operating Income Related Terms


Pernod Ricard Operating Income Headlines

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