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ADNT (Adient) Operating Income : $393 Mil (TTM As of Dec. 2024)


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What is Adient Operating Income?

Adient's Operating Income for the three months ended in Dec. 2024 was $90 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was $393 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Adient's Operating Income for the three months ended in Dec. 2024 was $90 Mil. Adient's Revenue for the three months ended in Dec. 2024 was $3,495 Mil. Therefore, Adient's Operating Margin % for the quarter that ended in Dec. 2024 was 2.58%.

Good Sign:

Adient PLC operating margin is expanding. Margin expansion is usually a good sign.

Adient's 5-Year average Growth Rate for Operating Margin % was 61.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Adient's annualized ROC % for the quarter that ended in Dec. 2024 was 3.09%. Adient's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 27.41%.


Adient Operating Income Historical Data

The historical data trend for Adient'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.

Adient Operating Income Chart

Adient Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.00 313.00 219.00 446.00 400.00

Adient Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Operating Income Get a 7-Day Free Trial 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 97.00 113.00 85.00 105.00 90.00

Adient 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. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $393 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.


Adient  (NYSE:ADNT) Operating Income Explanation

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

Adient's annualized ROC % for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=360 * ( 1 - 46.81% )/( (6391 + 6021)/ 2 )
=191.484/6206
=3.09 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2024) data.

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

Adient's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2024  Q: Dec. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=376/( ( (1410 + max(-528, 0)) + (1334 + max(-584, 0)) )/ 2 )
=376/( ( 1410 + 1334 )/ 2 )
=376/1372
=27.41 %

where Working Capital is:

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1896 + 758 + 487) - (2552 + 0 + 1117)
=-528

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1415 + 721 + 523) - (2244 + 0 + 999)
=-584

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

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

Adient's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2024 )/Revenue (Q: Dec. 2024 )
=90/3495
=2.58 %

* 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.


Adient Operating Income Related Terms

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


Adient Business Description

Traded in Other Exchanges
Address
3 Dublin Landings, North Wall Quay, IFSC, Dublin 1, Dublin, IRL, D01 H104
Adient began trading Oct. 31, 2016, when Johnson Controls spun off its automotive experience segment. Adient is the leading seating supplier to the industry with about one third of the global market. Its share in China is now nearly 20%, down from about 45%, following the sale of its main joint venture there at the end of fiscal 2021. Unconsolidated revenue from joint ventures was about $3.8 billion in fiscal 2024 and consolidated China revenue was $1.4 billion. The company is headquartered in Ireland but has corporate offices in the Detroit area. Fiscal 2024 (Sept. 30 year-end) consolidated revenue, which excludes joint venture sales, was $14.7 billion.
Executives
James Conklin officer: EVP, Americas ADIENT, 49200 HALYARD DRIVE, PLYMOUTH MI 48170
Gregory Scott Smith officer: VP & Chief Accounting Officer 49200 HALYARD DRIVE, PLYMOUTH MI 48170
Peter Carlin director 101 JFK PARKWAY, SHORT HILLS NJ 07078
Berthelin Michel Pierre Rose officer: VP, Seating EMEA 49200 HALYARD DRIVE, PLYMOUTH MI 48170
Heather M Tiltmann officer: SVP, Gen. Counsel & Secretary 49200 HALYARD DRIVE, PLYMOUTH MI 48170
Jerome J. Dorlack officer: VP, Seating Americas 5725 DELPHI DRIVE, TROY MI 48098
Jodi Euerle Eddy director C/O BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752
Douglas G Delgrosso director, officer: CEO and President
Jeffrey Stafeil officer: EVP and CFO 1707 PADDINGTON CIRCLE, KESWICK VA 22947
Ricky T Dillon director ONE SOUTH WACKER DRIVE, SUITE 1000, CHICAGO IL 60606
Jian James Huang officer: Vice President, APAC 49200 HALYARD DRIVE, PLYMOUTH MI 48170
Jose M Gutierrez director 175 E HOUSTON ST. ROOM 216, SAN ANTONIO TX 78205
Frederick A. Henderson director SUNCOKE ENERGY, INC., 1011 WARRENVILLE ROAD, SUITE 600, LISLE IL 60532
Cathleen A Ebacher officer: VP, GC and Secretary 833 E MICHIGAN STREET, SUITE 1100, MILWAUKEE WI 53202
R Bruce Mcdonald director, officer: Chairman and CEO ADIENT PLC, 833 E. MICHIGAN STREET, SUITE 1100, MILWAUKEE WI 53202