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Premier Investments (ASX:PMV) Operating Income : A$338 Mil (TTM As of Jan. 2024)


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What is Premier Investments Operating Income?

Premier Investments's Operating Income for the six months ended in Jan. 2024 was A$206 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was A$338 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Premier Investments's Operating Income for the six months ended in Jan. 2024 was A$206 Mil. Premier Investments's Revenue for the six months ended in Jan. 2024 was A$880 Mil. Therefore, Premier Investments's Operating Margin % for the quarter that ended in Jan. 2024 was 23.41%.

Good Sign:

Premier Investments Ltd operating margin is expanding. Margin expansion is usually a good sign.

Premier Investments's 5-Year average Growth Rate for Operating Margin % was 17.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Premier Investments's annualized ROC % for the quarter that ended in Jan. 2024 was 15.04%. Premier Investments's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 84.50%.


Premier Investments Operating Income Historical Data

The historical data trend for Premier Investments'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.

Premier Investments Operating Income Chart

Premier Investments Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 137.16 195.25 320.74 341.08 350.30

Premier Investments Semi-Annual Data
Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24
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 213.10 127.98 218.73 131.57 205.93

Premier Investments 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 Jan. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$338 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.


Premier Investments  (ASX:PMV) Operating Income Explanation

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

Premier Investments's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

ROC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=411.866 * ( 1 - 25.63% )/( (2039.546 + 2034.389)/ 2 )
=306.3047442/2036.9675
=15.04 %

where

Invested Capital(Q: Jul. 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))
=2518.129 - 127.264 - ( 418.224 - max(0, 335.996 - 687.315+418.224))
=2039.546

Invested Capital(Q: Jan. 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))
=2568.066 - 147.328 - ( 478.26 - max(0, 347.754 - 734.103+478.26))
=2034.389

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

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

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

ROC (Joel Greenblatt) %(Q: Jan. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jul. 2023  Q: Jan. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=484.358/( ( (518.234 + max(73.462, 0)) + (508.115 + max(46.609, 0)) )/ 2 )
=484.358/( ( 591.696 + 554.724 )/ 2 )
=484.358/573.21
=84.50 %

where Working Capital is:

Working Capital(Q: Jul. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 231.157 + 25.256) - (127.264 + 16.182 + 39.505)
=73.462

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(20.285 + 221.576 + 13.982) - (147.328 + 8.133 + 53.773)
=46.609

When net working capital is negative, 0 is used.

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

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

Premier Investments's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jan. 2024 )/Revenue (Q: Jan. 2024 )
=205.933/879.518
=23.41 %

* 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.


Premier Investments Operating Income Related Terms

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Premier Investments (ASX:PMV) Business Description

Traded in Other Exchanges
N/A
Address
417 St Kilda Road, Level 7, Melbourne, VIC, AUS, 3004
Premier Investments is an Australian company that operates six speciality retail fashion chains in the speciality retail fashion markets in Australia and New Zealand. It also operates the unique Smiggle brand, retailing children's stationery in Australia and overseas markets. Premier Investments has a separate business division that focuses on investment in listed securities and money market deposits.

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