Tyco International (Tyco International) Operating Income : $1,086 Mil (TTM As of Jun. 2016)

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What is Tyco International Operating Income?

Tyco International's Operating Income for the three months ended in Jun. 2016 was $248 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2016 was $1,086 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Tyco International's Operating Income for the three months ended in Jun. 2016 was $248 Mil. Tyco International's Revenue for the three months ended in Jun. 2016 was $2,449 Mil. Therefore, Tyco International's Operating Margin % for the quarter that ended in Jun. 2016 was 10.13%.

Tyco International's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Tyco International's annualized ROC % for the quarter that ended in Jun. 2016 was 9.91%. Tyco International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2016 was 65.92%.

Tyco International Operating Income Historical Data

The historical data trend for Tyco International'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.

Tyco International Operating Income Chart

Tyco International Annual Data

Trend

Sep06

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Sep15

Operating Income

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833.00

753.00

831.00

748.00

1,059.00

Tyco International Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
Operating Income	Get a 7-Day Free Trial															291.00	278.00	305.00	255.00	248.00

Tyco International 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 Jun. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,086 Mil.

Tyco International (NYSE:TYC) Operating Income Explanation

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

Tyco International's annualized ROC % for the quarter that ended in Jun. 2016 is calculated as:

	ROC % (Q: Jun. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2016 )	+	Invested Capital (Q: Jun. 2016 ))	/ count )
=	992 * ( 1 - 11.44% )	/	( (8826	+	8906)	/ 2 )
=	878.5152	/	8866
=	9.91 %

where

	Invested Capital		(Q: Mar. 2016 )
=	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	))
=	11611	-	2440	-	( 345	-	max(0, 3233	-	3663	+	345	))
=	8826

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	11614	-	2363	-	( 345	-	max(0, 3116	-	3822	+	345	))
=	8906

Note: The Operating Income data used here is four times the quarterly (Jun. 2016) data.

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

Tyco International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2016 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2016 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2016		Q: Jun. 2016
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1172	/	( ( (1189 + max(485, 0))	+	(1180 + max(702, 0)) )	/	2 )
=	1172	/	( ( 1674	+	1882 )	/	2 )
=	1172	/	1778
=	65.92 %

where Working Capital is:

	Working Capital		(Q: Mar. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1722	+	670	+	926)	-	(2440	+	393	+	0)
=	485

	Working Capital		(Q: Jun. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1805	+	656	+	1016)	-	(2363	+	378	+	34)
=	702

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2016) EBIT data.

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

Tyco International's Operating Margin % for the quarter that ended in Jun. 2016 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2016 )	/	Revenue (Q: Jun. 2016 )
	=	248	/	2449
	=	10.13 %

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.

Tyco International Operating Income Related Terms

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Tyco International (Tyco International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Tyco International PLC (NYSE:TYC) » Definitions » Operating Income

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Address

Unit 1202 Building 1000 City Gate, Mahon, Cork, IRL, 8212

Website

http://www.tyco.com

Tyco International PLC is a global provider of security products and services, fire detection and suppression products and services, and life safety products. Brand names include Tyco, Tyco Integrated Security, SimplexGrinnell, Sensormatic, Wormald, Scott, and ADT (outside North American markets). The revenue breakdown is 37% North America installation and services, 38% rest of world installation and services, and 25% global products. Tyco completed its spin-off of ADT and the flow control business in September 2012, five years after its prior three-way split.