Bon Natural Life (Bon Natural Life) Operating Income : $5.94 Mil (TTM As of Sep. 2023)

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What is Bon Natural Life Operating Income?

Bon Natural Life's Operating Income for the six months ended in Sep. 2023 was $2.95 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $5.94 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Bon Natural Life's Operating Income for the six months ended in Sep. 2023 was $2.95 Mil. Bon Natural Life's Revenue for the six months ended in Sep. 2023 was $15.37 Mil. Therefore, Bon Natural Life's Operating Margin % for the quarter that ended in Sep. 2023 was 19.17%.

Good Sign:

Bon Natural Life Ltd operating margin is expanding. Margin expansion is usually a good sign.

Bon Natural Life's 5-Year average Growth Rate for Operating Margin % was 21.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Bon Natural Life's annualized ROC % for the quarter that ended in Sep. 2023 was 12.08%. Bon Natural Life's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 15.23%.

Bon Natural Life Operating Income Historical Data

The historical data trend for Bon Natural Life'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.

Bon Natural Life Operating Income Chart

Bon Natural Life Annual Data

Trend

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

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3.32

3.83

5.85

7.85

5.94

Bon Natural Life Semi-Annual Data
	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Operating Income	Get a 7-Day Free Trial						2.87	3.33	4.52	3.00	2.95

Bon Natural Life 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 Sep. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was $5.94 Mil.

Bon Natural Life (NAS:BON) Operating Income Explanation

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

Bon Natural Life's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	5.894 * ( 1 - 16.75% )	/	( (41.04	+	40.178)	/ 2 )
=	4.906755	/	40.609
=	12.08 %

where

	Invested Capital		(Q: Mar. 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	))
=	47.207	-	5.625	-	( 0.542	-	max(0, 11.462	-	24.219	+	0.542	))
=	41.04

	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	))
=	46.556	-	6.265	-	( 0.113	-	max(0, 9.611	-	24.183	+	0.113	))
=	40.178

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

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

Bon Natural Life's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	5.994	/	( ( (22.586 + max(17.063, 0))	+	(21.376 + max(17.69, 0)) )	/	2 )
=	5.994	/	( ( 39.649	+	39.066 )	/	2 )
=	5.994	/	39.3575
=	15.23 %

where Working Capital is:

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(9.26	+	1.803	+	12.614)	-	(5.625	+	0.989	+	0)
=	17.063

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(4.602	+	0.987	+	18.472)	-	(6.265	+	0.107	+	-0.00099999999999767)
=	17.69

When net working capital is negative, 0 is used.

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

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

Bon Natural Life's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	2.947	/	15.372
	=	19.17 %

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.

Bon Natural Life Operating Income Related Terms

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Bon Natural Life (Bon Natural Life) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Bon Natural Life Ltd (NAS:BON) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

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Address

C601, Gazelle Valley, No.69 Jinye Road, Xi’an Hi-tech Zone, Xi’an, CHN, 710077

Website

https://www.bnlus.com

Bon Natural Life Ltd is engaged in the manufacturing of personal care ingredients, such as plant extracted fragrance compounds to perfume and fragrance manufacturers, natural health supplements such as powder drinks and bioactive food ingredient products mostly used as food additives and nutritional supplements. The company has its geographic presence in PRC and in Overseas.