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Siemens Healthineers AG (CHIX:SHLD) Operating Income : €2,809 Mil (TTM As of Sep. 2024)


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What is Siemens Healthineers AG Operating Income?

Siemens Healthineers AG's Operating Income for the three months ended in Sep. 2024 was €946 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was €2,809 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Siemens Healthineers AG's Operating Income for the three months ended in Sep. 2024 was €946 Mil. Siemens Healthineers AG's Revenue for the three months ended in Sep. 2024 was €6,329 Mil. Therefore, Siemens Healthineers AG's Operating Margin % for the quarter that ended in Sep. 2024 was 14.95%.

Warning Sign:

Siemens Healthineers AG operating margin has been in a 5-year decline. The average rate of decline per year is -5.9%.

Siemens Healthineers AG's 5-Year average Growth Rate for Operating Margin % was -5.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Siemens Healthineers AG's annualized ROC % for the quarter that ended in Sep. 2024 was 7.21%. Siemens Healthineers AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 89.03%.


Siemens Healthineers AG Operating Income Historical Data

The historical data trend for Siemens Healthineers AG'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.

Siemens Healthineers AG Operating Income Chart

Siemens Healthineers AG Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,944.00 2,568.00 2,924.00 2,133.00 2,809.00

Siemens Healthineers AG Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 859.00 595.00 589.00 679.00 946.00

Siemens Healthineers AG 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. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €2,809 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.


Siemens Healthineers AG  (CHIX:SHLd) Operating Income Explanation

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

Siemens Healthineers AG's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=3784 * ( 1 - 26.18% )/( (39666 + 37854)/ 2 )
=2793.3488/38760
=7.21 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

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

Siemens Healthineers AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=3944/( ( (4385 + max(-843, 0)) + (4475 + max(-1637, 0)) )/ 2 )
=3944/( ( 4385 + 4475 )/ 2 )
=3944/4430
=89.03 %

where Working Capital is:

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4215 + 4721 + 1151) - (4666 + 0 + 6264)
=-843

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4405 + 4143 + 1121) - (5426 + 0 + 5880)
=-1637

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

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

Siemens Healthineers AG's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2024 )/Revenue (Q: Sep. 2024 )
=946/6329
=14.95 %

* 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.


Siemens Healthineers AG Operating Income Related Terms

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Siemens Healthineers AG Business Description

Address
Siemensstr. 3, Forchheim, BY, DEU, 91301
Siemens Healthineers is engaged in therapeutic imaging, radiotherapy, laboratory, and point-of-care diagnostics. The imaging segment (55% of sales in fiscal 2023) includes magnetic resonance imaging, computed tomography, X-ray systems, molecular imaging, and ultrasound. The Varian segment (16% of sales) offers radiotherapy and other oncology solutions. The portfolio of the diagnostics segment (21%) includes in vitro diagnostics products offered to providers and point-of-care diagnostics. The advanced therapies segment (9%) products are designed to support image-guided minimally invasive treatments in cardiology, interventional radiology, and surgery. North America represents 41% of total sales, Europe, Middle East, and Africa 32%, and Asia-Pacific including China the remainder.

Siemens Healthineers AG Headlines

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