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Wise (CHIX:WISEL) Operating Income : £572 Mil (TTM As of Sep. 2024)


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What is Wise Operating Income?

Wise's Operating Income for the six months ended in Sep. 2024 was £286 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was £572 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Wise's Operating Income for the six months ended in Sep. 2024 was £286 Mil. Wise's Revenue for the six months ended in Sep. 2024 was £893 Mil. Therefore, Wise's Operating Margin % for the quarter that ended in Sep. 2024 was 32.04%.

Good Sign:

Wise PLC operating margin is expanding. Margin expansion is usually a good sign.

Wise's 5-Year average Growth Rate for Operating Margin % was 34.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Wise's annualized ROC % for the quarter that ended in Sep. 2024 was 110.06%. Wise's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 1,100.82%.


Wise Operating Income Historical Data

The historical data trend for Wise'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.

Wise Operating Income Chart

Wise Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Income
Get a 7-Day Free Trial 19.50 46.80 48.70 154.40 482.20

Wise Semi-Annual Data
Mar19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 54.70 99.70 196.30 285.90 286.00

Wise 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 semi-annually data reported by the company within the most recent 12 months, which was £572 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.


Wise  (CHIX:WISEl) Operating Income Explanation

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

Wise'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: Mar. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=572 * ( 1 - 25.71% )/( (478.3 + 293.9)/ 2 )
=424.9388/386.1
=110.06 %

where

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

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

Wise'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: Mar. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=603.8/( ( (34.3 + max(-8284.2, 0)) + (75.4 + max(-14819.1, 0)) )/ 2 )
=603.8/( ( 34.3 + 75.4 )/ 2 )
=603.8/54.85
=1,100.82 %

where Working Capital is:

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(247.1 + 0 + 5351.2) - (13789.5 + 0 + 93)
=-8284.2

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(411.4 + 0 + 4.8999999999996) - (15125.7 + 0 + 109.7)
=-14819.1

When net working capital is negative, 0 is used.

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

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

Wise'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 )
=286/892.6
=32.04 %

* 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.


Wise Operating Income Related Terms

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Wise Business Description

Traded in Other Exchanges
Address
56 Shoreditch High Street, 6th Floor, Tea Building, London, GBR, E1 6JJ
Wise PLC is a currency conversion platform utilizing a peer-to-peer network to reduce transfer costs. The group focuses primarily on private clients and small and midsize enterprises. By operating local accounts in each jurisdiction Wise sends money to or receives money from, this fintech offers faster and cheaper currency transfer services than incumbents (banks). Wise has started to broaden its product offering, issuing its clients debit cards and allowing customers to invest funds into various asset-management products.

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