Shoprite Holdings (Shoprite Holdings) Operating Income : $596 Mil (TTM As of Dec. 2023)

View and export this data going back to 2008. Start your Free Trial

What is Shoprite Holdings Operating Income?

Shoprite Holdings's Operating Income for the six months ended in Dec. 2023 was $311 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $596 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Shoprite Holdings's Operating Income for the six months ended in Dec. 2023 was $311 Mil. Shoprite Holdings's Revenue for the six months ended in Dec. 2023 was $6,498 Mil. Therefore, Shoprite Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was 4.79%.

Good Sign:

Shoprite Holdings Ltd operating margin is expanding. Margin expansion is usually a good sign.

Shoprite Holdings's 5-Year average Growth Rate for Operating Margin % was 2.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Shoprite Holdings's annualized ROC % for the quarter that ended in Dec. 2023 was 12.13%. Shoprite Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 28.54%.

Shoprite Holdings Operating Income Historical Data

The historical data trend for Shoprite Holdings'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.

Shoprite Holdings Operating Income Chart

Shoprite Holdings Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Operating Income

Get a 7-Day Free Trial

523.21

433.87

670.23

629.68

564.42

Shoprite Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial															329.99	298.08	302.78	285.31	311.01

Shoprite Holdings 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 semi-annually data reported by the company within the most recent 12 months, which was $596 Mil.

Shoprite Holdings (OTCPK:SRGHY) Operating Income Explanation

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

Shoprite Holdings'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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	622.022 * ( 1 - 30.83% )	/	( (3649.279	+	3442.692)	/ 2 )
=	430.2526174	/	3545.9855
=	12.13 %

where

	Invested Capital		(Q: Jun. 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	))
=	5460.501	-	1253.468	-	( 707.289	-	max(0, 1996.074	-	2553.828	+	707.289	))
=	3649.279

	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	))
=	5794.781	-	1813.63	-	( 595.294	-	max(0, 2189.097	-	2727.556	+	595.294	))
=	3442.692

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

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

Shoprite Holdings'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: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	749.11	/	( ( (2314.349 + max(328.25, 0))	+	(2470.214 + max(136.426, 0)) )	/	2 )
=	749.11	/	( ( 2642.599	+	2606.64 )	/	2 )
=	749.11	/	2624.6195
=	28.54 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(303.924	+	1338.505	+	132.303)	-	(1253.468	+	0	+	193.014)
=	328.25

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(326.628	+	1570.993	+	114.423)	-	(1813.63	+	0	+	61.988)
=	136.426

When net working capital is negative, 0 is used.

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

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

Shoprite Holdings'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 )
	=	311.011	/	6498.165
	=	4.79 %

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.

Shoprite Holdings Operating Income Related Terms

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

Shoprite Holdings (Shoprite Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Shoprite Holdings Ltd (OTCPK:SRGHY) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

SHOPRITE:Zambia SHP:South Africa SRHGF:USA SRH:Namibia

Address

Cnr William Dabs Street and Old Paarl Road, Brackenfell, WC, ZAF, 7560

Website

https://www.shopriteholdings.co.za

Shoprite Holdings Ltd is part of The Shoprite Group of Companies, an African food retailer, which operates in countries across Africa and the Indian Ocean Islands. The primary business is food retailing. Besides food retailing, the company is operating in furniture, house products, fast foods, pharmacies, and liquor business segments. The company is targeting consumers at all income levels. The Checkers, Checkers Hyper, and House & Home stores address higher-income groups, while Shoprite Usave focuses on the lower end of the market. Shoprite and OK Furniture offer products for the middle- to lower-income market. The company's reportable segment includes, Supermarkets RSA, Supermarkets Non-RSA, Furniture and Other operating segment.

Shoprite Holdings (Shoprite Holdings) Headlines

From GuruFocus

Shoprite Holdings Ltd: Africa's Largest Food Retailer

By Carmine Romano Carmine Romano • 01-16-2013

Africa's Top Retailer Likely To Flourish In The Expected Population Boom

By Chris Mydlo Chris Mydlo • 06-26-2014