Adarsh Mercantile (BOM:538563) Operating Income : ₹-1.62 Mil (TTM As of Dec. 2023)

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What is Adarsh Mercantile Operating Income?

Adarsh Mercantile's Operating Income for the three months ended in Dec. 2023 was ₹0.15 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was ₹-1.62 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Adarsh Mercantile's Operating Income for the three months ended in Dec. 2023 was ₹0.15 Mil. Adarsh Mercantile's Revenue for the three months ended in Dec. 2023 was ₹0.00 Mil. Therefore, Adarsh Mercantile's Operating Margin % for the quarter that ended in Dec. 2023 was %.

Warning Sign:

Adarsh Mercantile Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -61.7%.

Adarsh Mercantile's 5-Year average Growth Rate for Operating Margin % was -61.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Adarsh Mercantile's annualized ROC % for the quarter that ended in Dec. 2023 was 0.42%. Adarsh Mercantile's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 27.79%.

Adarsh Mercantile Operating Income Historical Data

The historical data trend for Adarsh Mercantile'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.

Adarsh Mercantile Operating Income Chart

Adarsh Mercantile Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Operating Income

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-1.92

-3.23

-2.80

-0.85

-2.66

Adarsh Mercantile Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															-0.14	-1.14	-0.43	-0.21	0.15

Adarsh Mercantile 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 quarterly data reported by the company within the most recent 12 months, which was ₹-1.62 Mil.

Adarsh Mercantile (BOM:538563) Operating Income Explanation

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

Adarsh Mercantile'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: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	0.608 * ( 1 - 0% )	/	( (146.008	+	0)	/ 1 )
=	0.608	/	146.008
=	0.42 %

where

	Invested Capital		(Q: Sep. 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	))
=	153.354	-	2.513	-	( 4.833	-	max(0, 40.389	-	74.129	+	4.833	))
=	146.008

	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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

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

Adarsh Mercantile'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: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	14.452	/	( ( (0 + max(52.006, 0))	+	(0 + max(0, 0)) )	/	1 )
=	14.452	/	( ( 52.006	+	0 )	/	1 )
=	14.452	/	52.006
=	27.79 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(51.301	+	4.021	+	0.548)	-	(2.513	+	0	+	1.351)
=	52.006

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

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

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

Adarsh Mercantile'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 )
	=	0.152	/	0
	=	%

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.

Adarsh Mercantile Operating Income Related Terms

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

Adarsh Mercantile (BOM:538563) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Adarsh Mercantile Ltd (BOM:538563) » Definitions » Operating Income

Traded in Other Exchanges

N/A

Address

3, Alipore Road, 8A and 8B, Satyam Towers, Kolkata, WB, IND, 700 027

Website

https://www.adarshmercantile.in

Adarsh Mercantile Ltd is an Indian company that operates in the commodity and financial services industry. The company is engaged in the business of trading goods, trading and investment in shares and securities. It is also engaged in investment in property. The company generates maximum revenue from the sale of Green tea leaf.

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