AHR (American Healthcare REIT) Operating Income : $137 Mil (TTM As of Dec. 2024)

View and export this data going back to 2024. Start your Free Trial

What is American Healthcare REIT Operating Income?

American Healthcare REIT's Operating Income for the three months ended in Dec. 2024 was $40 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was $137 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. American Healthcare REIT's Operating Income for the three months ended in Dec. 2024 was $40 Mil. American Healthcare REIT's Revenue for the three months ended in Dec. 2024 was $543 Mil. Therefore, American Healthcare REIT's Operating Margin % for the quarter that ended in Dec. 2024 was 7.40%.

American Healthcare REIT'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. American Healthcare REIT's annualized ROC % for the quarter that ended in Dec. 2024 was 3.34%. American Healthcare REIT's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was -3.65%.

American Healthcare REIT Operating Income Historical Data

The historical data trend for American Healthcare REIT'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.

American Healthcare REIT Operating Income Chart

American Healthcare REIT Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Dec24

Operating Income

92.41

36.95

90.59

76.72

136.79

American Healthcare REIT Quarterly Data
	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Operating Income	Get a 7-Day Free Trial								29.22	27.58	31.68	37.37	40.15

American Healthcare REIT 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 $137 Mil.

American Healthcare REIT (NYSE:AHR) Operating Income Explanation

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

American Healthcare REIT'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 )
=	160.6 * ( 1 - -1.52% )	/	( (4932.404	+	4821.696)	/ 2 )
=	163.04112	/	4877.05
=	3.34 %

where

	Invested Capital		(Q: Sep. 2024 )
=	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	))
=	4677.012	-	269.778	-	( 67.85	-	max(0, 865.748	-	340.578	+	67.85	))
=	4932.404

	Invested Capital		(Q: Dec. 2024 )
=	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	))
=	4488.057	-	258.324	-	( 76.702	-	max(0, 946.858	-	354.895	+	76.702	))
=	4821.696

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

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

American Healthcare REIT'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 )
=	-6.568	/	( ( (173.018 + max(2.95, 0))	+	(163.987 + max(19.869, 0)) )	/	2 )
=	-6.568	/	( ( 175.968	+	183.856 )	/	2 )
=	-6.568	/	179.912
=	-3.65 %

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)
=	(203.672	+	20.234	+	48.822)	-	(269.778	+	0	+	0)
=	2.95

	Working Capital		(Q: Dec. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(211.104	+	19.477	+	47.612)	-	(258.324	+	0	+	0)
=	19.869

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 %:

American Healthcare REIT'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 )
	=	40.15	/	542.74
	=	7.40 %

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.

American Healthcare REIT Operating Income Related Terms

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

American Healthcare REIT Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » American Healthcare REIT Inc (NYSE:AHR) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

18191 Von Karman Avenue, Suite 300, Irvine, CA, USA, 92612

Website

https://www.americanhealthcarereit.com

American Healthcare REIT Inc is a healthcare-focused real estate investment trust. It owns a diversified portfolio of clinical healthcare real estate properties, focusing on medical office buildings, skilled nursing facilities, senior housing, hospitals, and other healthcare-related facilities. It has four reportable business segments: integrated senior health campuses, outpatient medical, triple-net leased properties and SHOP. It generates majority of its revenue through Integrated Senior Health Campuses segment.