PWR Holdings (ASX:PWH) Operating Income : A$31.2 Mil (TTM As of Dec. 2023)

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What is PWR Holdings Operating Income?

PWR Holdings's Operating Income for the six months ended in Dec. 2023 was A$12.4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was A$31.2 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. PWR Holdings's Operating Income for the six months ended in Dec. 2023 was A$12.4 Mil. PWR Holdings's Revenue for the six months ended in Dec. 2023 was A$64.2 Mil. Therefore, PWR Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was 19.24%.

Warning Sign:

PWR Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -2.6%.

PWR Holdings's 5-Year average Growth Rate for Operating Margin % was -2.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. PWR Holdings's annualized ROC % for the quarter that ended in Dec. 2023 was 18.50%. PWR Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 35.10%.

PWR Holdings Operating Income Historical Data

The historical data trend for PWR Holdings'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.

PWR Holdings Operating Income Chart

PWR Holdings Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Operating Income

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18.69

14.55

18.61

26.93

28.69

PWR Holdings Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial												10.29	16.64	9.81	18.89	12.36

PWR Holdings 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. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$31.2 Mil.

PWR Holdings (ASX:PWH) Operating Income Explanation

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

PWR Holdings's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	24.714 * ( 1 - 26.32% )	/	( (97.863	+	99.011)	/ 2 )
=	18.2092752	/	98.437
=	18.50 %

where

	Invested Capital		(Q: Jun. 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	))
=	123.156	-	7.667	-	( 17.626	-	max(0, 16.153	-	53.471	+	17.626	))
=	97.863

	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	))
=	123.347	-	8.724	-	( 15.612	-	max(0, 18.191	-	54.071	+	15.612	))
=	99.011

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

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

PWR Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	26.558	/	( ( (53.766 + max(22.257, 0))	+	(53.419 + max(21.887, 0)) )	/	2 )
=	26.558	/	( ( 76.023	+	75.306 )	/	2 )
=	26.558	/	75.6645
=	35.10 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(16.006	+	17.789	+	2.05)	-	(7.667	+	1.133	+	4.788)
=	22.257

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(16.357	+	19.903	+	2.199)	-	(8.724	+	1.939	+	5.909)
=	21.887

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

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

PWR Holdings's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	12.357	/	64.215
	=	19.24 %

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.

PWR Holdings Operating Income Related Terms

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

PWR Holdings (ASX:PWH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » PWR Holdings Ltd (ASX:PWH) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

103 Lahrs Road, Ormeau, QLD, AUS, 4208

Website

https://www.pwr.com.au

PWR Holdings is a designer, manufacturer, and supplier of cooling solutions for motorsports and the performance automotive industry. PWR produces aluminum radiators, intercoolers, heat exchangers, oil coolers, and other cooling accessories for motorsports, performance automotive original equipment manufacturers, the automotive aftermarket, and aerospace and defense sectors. The motorsports segment generates the majority of revenue, while OEM and aftermarket constitute over a third of the income stream. PWR's products are primarily sold in North America and Europe.

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