Summerset Group Holdings (ASX:SNZ) Operating Income : A$6.1 Mil (TTM As of Dec. 2023)

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What is Summerset Group Holdings Operating Income?

Summerset Group Holdings's Operating Income for the six months ended in Dec. 2023 was A$-1.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was A$6.1 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Summerset Group Holdings's Operating Income for the six months ended in Dec. 2023 was A$-1.5 Mil. Summerset Group Holdings's Revenue for the six months ended in Dec. 2023 was A$133.1 Mil. Therefore, Summerset Group Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was -1.09%.

Warning Sign:

Summerset Group Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -29.5%.

Summerset Group Holdings's 5-Year average Growth Rate for Operating Margin % was -29.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Summerset Group Holdings's annualized ROC % for the quarter that ended in Dec. 2023 was -0.05%. Summerset Group Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 165.66%.

Summerset Group Holdings Operating Income Historical Data

The historical data trend for Summerset Group 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.

Summerset Group Holdings Operating Income Chart

Summerset Group Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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22.52

16.45

10.87

10.90

6.25

Summerset Group Holdings 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															0.67	3.62	7.12	7.57	-1.45

Summerset Group 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$6.1 Mil.

Summerset Group Holdings (ASX:SNZ) Operating Income Explanation

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

Summerset Group 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 )
=	-2.908 * ( 1 - -3.02% )	/	( (5810.978	+	6555.856)	/ 2 )
=	-2.9958216	/	6183.417
=	-0.05 %

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	))
=	5757.085	-	154.755	-	( 31.961	-	max(0, 342.421	-	133.773	+	31.961	))
=	5810.978

	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	))
=	6453.56	-	160.528	-	( 13.224	-	max(0, 377.047	-	114.223	+	13.224	))
=	6555.856

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:

Summerset Group 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 )
=	574.078	/	( ( (318.185 + max(-240.609, 0))	+	(374.893 + max(-295.023, 0)) )	/	2 )
=	574.078	/	( ( 318.185	+	374.893 )	/	2 )
=	574.078	/	346.539
=	165.66 %

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)
=	(37.062	+	0	+	64.75)	-	(154.755	+	0	+	187.666)
=	-240.609

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(5.013	+	0	+	77.011)	-	(160.528	+	172.469	+	44.05)
=	-295.023

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 %:

Summerset Group 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 )
	=	-1.454	/	133.115
	=	-1.09 %

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.

Summerset Group Holdings Operating Income Related Terms

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Summerset Group Holdings (ASX:SNZ) Business Description

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SUM:New Zealand

Address

100 Willis Street, Level 27, Majestic Centre, Wellington, NZL, 6011

Website

https://www.summerset.co.nz

Summerset Group Holdings Ltd operates retirement villages in New Zealand. The company receives a majority of its revenue from the New Zealand Ministry of Health, which subsidizes fees for eligible aged-care residents. Its revenue is primarily derived from care fees and village services income. Summerset provides a range of care for its residents, including in-home care and 24-hour medical-care centers. In addition to its independent-living villas and apartments, Summerset offers supported-living residences, which include assistance with daily activities like shopping and housekeeping.