Engenco (ASX:EGN) Operating Income : A$4.9 Mil (TTM As of Jun. 2024)

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What is Engenco Operating Income?

Engenco's Operating Income for the six months ended in Jun. 2024 was A$2.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was A$4.9 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Engenco's Operating Income for the six months ended in Jun. 2024 was A$2.7 Mil. Engenco's Revenue for the six months ended in Jun. 2024 was A$106.6 Mil. Therefore, Engenco's Operating Margin % for the quarter that ended in Jun. 2024 was 2.54%.

Warning Sign:

Engenco Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -17.6%.

Engenco's 5-Year average Growth Rate for Operating Margin % was -17.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Engenco's annualized ROC % for the quarter that ended in Jun. 2024 was 2.83%. Engenco's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 6.25%.

Engenco Operating Income Historical Data

The historical data trend for Engenco'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.

Engenco Operating Income Chart

Engenco Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Operating Income

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8.75

6.10

4.71

6.54

4.90

Engenco Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Operating Income	Get a 7-Day Free Trial															2.82	0.05	6.49	2.19	2.71

Engenco 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. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$4.9 Mil.

Engenco (ASX:EGN) Operating Income Explanation

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

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

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	5.424 * ( 1 - 24.51% )	/	( (146.007	+	143.253)	/ 2 )
=	4.0945776	/	144.63
=	2.83 %

where

	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	))
=	181.473	-	26.986	-	( 8.48	-	max(0, 65.652	-	118.891	+	8.48	))
=	146.007

	Invested Capital		(Q: Jun. 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	))
=	190.496	-	28.257	-	( 18.986	-	max(0, 65.556	-	122.412	+	18.986	))
=	143.253

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

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

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

	ROC (Joel Greenblatt) %		(Q: Jun. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Jun. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	6.51	/	( ( (42.58 + max(62.954, 0))	+	(49.359 + max(53.396, 0)) )	/	2 )
=	6.51	/	( ( 105.534	+	102.755 )	/	2 )
=	6.51	/	104.1445
=	6.25 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(38.068	+	61.561	+	10.782)	-	(26.986	+	0.002	+	20.469)
=	62.954

	Working Capital		(Q: Jun. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(31.788	+	61.217	+	10.619)	-	(28.257	+	0.092	+	21.879)
=	53.396

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT data.

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

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

Operating Margin %	=	Operating Income (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	2.712	/	106.636
	=	2.54 %

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.

Engenco Operating Income Related Terms

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Engenco Business Description

Industry

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Address

535 Bourke Street, Level 22, Melbourne, VIC, AUS, 3000

Website

https://www.engenco.com.au

Engenco Ltd engages in the provision of engineering services. It operates through Drivetrain, Convair Engineering, Gemco Rail, Hedemora Turbo & Diesel, Workforce Solutions, and All Other segments. The company generates maximum revenue from the Gemco Rail segment. Gemco Rail segment specializes in the remanufacture and repair of locomotives, wagons, bearings, and other rail products for rail operators and maintainers. It provides wheelset, bogie, and in-field wagon maintenance and manufactures new and refurbished wagons, bogie parts, customized remote-controlled ballast car discharge gates, and others. Geographically, it derives a majority of its revenue from Australasia.