Ramsay Health Care (ASX:RHC) Operating Income: A$894 Mil (TTM As of Dec. 2025)

What is Ramsay Health Care Operating Income?

Ramsay Health Care ASX:RHC -1.42% 87 Operating Income is A$894 Mil as of Dec. 2025. GuruFocus rates ASX:RHC with a GF Score™ of 87/100 and a GF Value™ of A$50.79 (Modestly Undervalued). The stock has 9 warning signs investors should review.

Ramsay Health Care's Operating Income for the six months ended in Dec. 2025 was A$485 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$894 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ramsay Health Care's Operating Income for the six months ended in Dec. 2025 was A$485 Mil. Ramsay Health Care's Revenue for the six months ended in Dec. 2025 was A$9,341 Mil. Therefore, Ramsay Health Care's Operating Margin % for the quarter that ended in Dec. 2025 was 5.19%.

Good Sign:

Ramsay Health Care Ltd operating margin is expanding. Margin expansion is usually a good sign.

Ramsay Health Care's 5-Year average Growth Rate for Operating Margin % was 19.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Ramsay Health Care's annualized ROC % for the quarter that ended in Dec. 2025 was 3.06%. Ramsay Health Care's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 6.89%.

Ramsay Health Care (ASX:RHC) Operating Income Explanation

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

Ramsay Health Care's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

	ROC % (Q: Dec. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2025 )	+	Invested Capital (Q: Dec. 2025 ))	/ count )
=	969.4 * ( 1 - 37.69% )	/	( (19324.2	+	20125.2)	/ 2 )
=	604.03314	/	19724.7
=	3.06 %

where

	Invested Capital		(Q: Jun. 2025 )
=	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	))
=	22475.5	-	3576.6	-	( 784.4	-	max(0, 4465.6	-	4040.3	+	784.4	))
=	19324.2

	Invested Capital		(Q: Dec. 2025 )
=	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	))
=	21697.7	-	1963.9	-	( 469	-	max(0, 3951.4	-	3560	+	469	))
=	20125.2

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

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

Ramsay Health Care's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2025 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2025		Q: Dec. 2025
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	760.4	/	( ( (11153 + max(-328.6, 0))	+	(10912.8 + max(-199.7, 0)) )	/	2 )
=	760.4	/	( ( 11153	+	10912.8 )	/	2 )
=	760.4	/	11032.9
=	6.89 %

where Working Capital is:

	Working Capital		(Q: Jun. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2701.5	+	404.4	+	344.8)	-	(3576.6	+	76.8	+	125.9)
=	-328.6

	Working Capital		(Q: Dec. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2626.2	+	413.8	+	51)	-	(1963.9	+	68.9	+	1257.9)
=	-199.7

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

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

Ramsay Health Care's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2025 )	/	Revenue (Q: Dec. 2025 )
	=	484.7	/	9340.8
	=	5.19 %

* 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.

Ramsay Health Care Operating Income Related Terms

Ramsay Health Care Operating Income Historical Data

* Premium members only.

The historical data trend for Ramsay Health Care's Operating Income can be seen below:

Ramsay Health Care Operating Income Chart

Ramsay Health Care Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Jun25

Operating Income

Get a 7-Day Free Trial

174.80

230.60

554.20

833.20

870.50

Ramsay Health Care Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
Operating Income	Get a 7-Day Free Trial															440.20	393.00	460.80	409.70	484.70

87GF Score

Ramsay Health Care Ltd ASX:RHC

Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.

View Full Analysis

Ramsay Health Care 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. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$894 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of A$894 Mil mean?

Ramsay Health Care (ASX:RHC) has a Operating Income of A$894 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Ramsay Health Care and its competitors.

Is Ramsay Health Care's Operating Income too high?

Ramsay Health Care's current Operating Income is A$894 Mil. Overall, Ramsay Health Care has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Ramsay Health Care's Operating Income compare to HCA and THC?

Ramsay Health Care's Operating Income of A$894 Mil can be compared against companies in the Healthcare Providers & Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Operating Income for a Healthcare Providers & Services company?

A good Operating Income depends on the Healthcare Providers & Services industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Operating Income mean?

A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Ramsay Health Care and its competitors. Ramsay Health Care's current Operating Income is A$894 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Ramsay Health Care stock overvalued right now?

Based on GuruFocus' analysis, Ramsay Health Care (ASX:RHC) is currently considered Modestly Undervalued. The stock's GF Value™ is A$50.79, compared to a current price of A$43.05 — trading 15.2% below its estimated fair value. The current Operating Income is A$894 Mil. Ramsay Health Care's overall GF Score™ is 87/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Operating Income calculated?

Operating Income is calculated from a company's financial statements. For Ramsay Health Care (ASX:RHC), the current Operating Income is A$894 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ramsay Health Care (ASX:RHC) Overvalued in 2026?

Based on GuruFocus' analysis, Ramsay Health Care stock appears to be undervalued. The current stock price of A$43.05 is trading 15.2% below its estimated GF Value™ of A$50.79. GuruFocus considers Ramsay Health Care to be Modestly Undervalued.

Key valuation signals for ASX:RHC:

Operating Income: A$894 Mil
GF Value™: A$50.79 vs. price of A$43.05 (15.2% below fair value)
GF Score™: 87/100 with 9 warning signs

No single metric tells the full story. See the ASX:RHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Ramsay Health Care Business Description

Industry Healthcare Healthcare Providers & Services

Comparable Companies ASX:REG HCA XTER:FRE SAU:4013 XKLS:5225 THC BSP:RDOR3 DVA NSE:APOLLOHOSP XTER:FME BOM:543220 SZSE:300015 EHC ENSG BKK:BDMS UHS BOM:532843 ISX:SRAJ ADX:PUREHEALTH PACS

Other Exchanges RMYHY:USA RMSYF:USA RMY0:Germany RHCPA.PFD:Australia

Address 126 Phillip Street, Suite 18.03, Level 18, Deutsche Bank Place, Sydney, NSW, AUS, 2000

Website https://www.ramsayhealth.com

Ramsay Health Care is one of the largest private healthcare providers in the world, with more than 500 sites across about eight countries. The key markets in which it operates are Australia, France, the UK, and Sweden. It is the largest private hospital group in each of these markets except for the UK, where it is the largest independent supplier to the NHS. Ramsay Santé, which operates the European regions other than the UK, is a 53%-owned subsidiary of Ramsay Health Care. The company typically earns about two-thirds of consolidated earnings in Australia. Ramsay Health Care undertakes both private and publicly funded healthcare.

87GF Score

Get the complete analysis for ASX:RHC

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$43.05

Price

A$50.79

GF Value

View ASX:RHC Analysis

See Operating Income data for all stocks →