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BTDPF (Barratt Redrow) Operating Income : $222 Mil (TTM As of Jun. 2024)


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What is Barratt Redrow Operating Income?

Barratt Redrow's Operating Income for the six months ended in Jun. 2024 was $98 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was $222 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Barratt Redrow's Operating Income for the six months ended in Jun. 2024 was $98 Mil. Barratt Redrow's Revenue for the six months ended in Jun. 2024 was $2,948 Mil. Therefore, Barratt Redrow's Operating Margin % for the quarter that ended in Jun. 2024 was 3.32%.

Warning Sign:

Barratt Redrow PLC operating margin has been in a 5-year decline. The average rate of decline per year is -20.7%.

Barratt Redrow's 5-Year average Growth Rate for Operating Margin % was -20.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Barratt Redrow's annualized ROC % for the quarter that ended in Jun. 2024 was 1.55%. Barratt Redrow's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 4.96%.


Barratt Redrow Operating Income Historical Data

The historical data trend for Barratt Redrow'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.

Barratt Redrow Operating Income Chart

Barratt Redrow Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 617.52 1,137.59 796.31 893.18 222.27

Barratt Redrow Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 261.82 601.95 269.19 123.80 97.84

Barratt Redrow 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 Jun. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was $222 Mil.

* 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.


Barratt Redrow  (OTCPK:BTDPF) Operating Income Explanation

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

Barratt Redrow's annualized ROC % for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=195.674 * ( 1 - 39.84% )/( (7272.658 + 7917.811)/ 2 )
=117.7174784/7595.2345
=1.55 %

where

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))
=9598.101 - 1123.038 - ( 1202.405 - max(0, 1618.861 - 7962.025+1202.405))
=7272.658

Invested Capital(Q: Jun. 2024 )
=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))
=10019.338 - 746.183 - ( 1355.344 - max(0, 1840.331 - 8367.939+1355.344))
=7917.811

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

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

Barratt Redrow's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Jun. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=258.778/( ( (129.873 + max(5159.493, 0)) + (125.573 + max(5024.3, 0)) )/ 2 )
=258.778/( ( 5289.366 + 5149.873 )/ 2 )
=258.778/5219.6195
=4.96 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(156.835 + 6568.228 + 34.557) - (1123.038 + 0 + 477.089)
=5159.493

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(91.858 + 6715.267 + 40.458000000001) - (746.183 + 0 + 1077.1)
=5024.3

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT data.

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

Barratt Redrow's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2024 )/Revenue (Q: Jun. 2024 )
=97.837/2948.346
=3.32 %

* 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.


Barratt Redrow Operating Income Related Terms

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Barratt Redrow Business Description

Traded in Other Exchanges
Address
Cartwright Way, Forest Business Park, Barratt House, Bardon Hill, Coalville, Leicestershire, GBR, LE67 1UF
Barratt Developments is the UK's largest residential property developer by revenue and dwelling completions, marketing homes under its three brands: Barratt Homes, David Wilson, and Barratt London. Aligning with the typical business model employed by UK homebuilders, Barratt is vertically integrated through the land development, construction, and sales and marketing segments of the residential property development value chain.