Qantas Airways (ASX:QAN) Operating Income : A$2,165 Mil (TTM As of Dec. 2023)

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What is Qantas Airways Operating Income?

Qantas Airways's Operating Income for the six months ended in Dec. 2023 was A$1,165 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was A$2,165 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Qantas Airways's Operating Income for the six months ended in Dec. 2023 was A$1,165 Mil. Qantas Airways's Revenue for the six months ended in Dec. 2023 was A$10,958 Mil. Therefore, Qantas Airways's Operating Margin % for the quarter that ended in Dec. 2023 was 10.63%.

Qantas Airways'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. Qantas Airways's annualized ROC % for the quarter that ended in Dec. 2023 was 6.77%. Qantas Airways's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 20.83%.

Qantas Airways Operating Income Historical Data

The historical data trend for Qantas Airways'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.

Qantas Airways Operating Income Chart

Qantas Airways Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Operating Income

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868.00

-2.00

-1,625.00

-1,824.00

2,440.00

Qantas Airways Semi-Annual Data
	Jun14	Dec14	Jun15	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															-1,359.00	-465.00	1,440.00	1,000.00	1,165.00

Qantas Airways 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$2,165 Mil.

Qantas Airways (ASX:QAN) Operating Income Explanation

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

Qantas Airways'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 )
=	2330 * ( 1 - 30.2% )	/	( (24614	+	23459)	/ 2 )
=	1626.34	/	24036.5
=	6.77 %

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	))
=	20354	-	2732	-	( 3393	-	max(0, 12097	-	5105	+	3393	))
=	24614

	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	))
=	19277	-	3094	-	( 1740	-	max(0, 10892	-	3616	+	1740	))
=	23459

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:

Qantas Airways'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 )
=	2818	/	( ( (13152 + max(-9015, 0))	+	(13902 + max(-8355, 0)) )	/	2 )
=	2818	/	( ( 13152	+	13902 )	/	2 )
=	2818	/	13527
=	20.83 %

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)
=	(1046	+	290	+	366)	-	(2732	+	6662	+	1323)
=	-9015

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1186	+	312	+	378)	-	(3094	+	0	+	7137)
=	-8355

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 %:

Qantas Airways'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 )
	=	1165	/	10958
	=	10.63 %

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.

Qantas Airways Operating Income Related Terms

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

Qantas Airways (ASX:QAN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Qantas Airways Ltd (ASX:QAN) » Definitions » Operating Income

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QUBSF:USA QABSY:USA QAN:Germany

Address

10 Bourke Road, Mascot, Sydney, NSW, AUS, 2020

Website

https://www.qantas.com

Qantas Airways is Australia's largest domestic airline with typically a two thirds market share, effectively competing in a duopoly with Virgin. The company operates a multibrand strategy, with low-cost carrier Jetstar complementing the full-service Qantas brand. Its frequent-flyer loyalty program continues to expand with new partnerships, which are integral to retaining customer loyalty for its core airline business.

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