Chemring Group (Chemring Group) Operating Income : $49.1 Mil (TTM As of Apr. 2024)

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What is Chemring Group Operating Income?

Chemring Group's Operating Income for the six months ended in Apr. 2024 was $21.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2024 was $49.1 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Chemring Group's Operating Income for the six months ended in Apr. 2024 was $21.9 Mil. Chemring Group's Revenue for the six months ended in Apr. 2024 was $279.6 Mil. Therefore, Chemring Group's Operating Margin % for the quarter that ended in Apr. 2024 was 7.83%.

Chemring Group's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Chemring Group's annualized ROC % for the quarter that ended in Apr. 2024 was 5.79%. Chemring Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2024 was 12.35%.

Chemring Group Operating Income Historical Data

The historical data trend for Chemring Group'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.

Chemring Group Operating Income Chart

Chemring Group Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Operating Income

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39.62

60.13

69.04

56.01

55.30

Chemring Group Semi-Annual Data
	Oct14	Apr15	Oct15	Apr16	Oct16	Apr17	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23	Apr24
Operating Income	Get a 7-Day Free Trial															37.90	22.79	28.77	27.16	21.90

Chemring Group 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 Apr. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was $49.1 Mil.

Chemring Group (OTCPK:CMGMY) Operating Income Explanation

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

Chemring Group's annualized ROC % for the quarter that ended in Apr. 2024 is calculated as:

	ROC % (Q: Apr. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Apr. 2024 ))	/ count )
=	43.804 * ( 1 - 19.74% )	/	( (641.048	+	573.718)	/ 2 )
=	35.1570904	/	607.383
=	5.79 %

where

	Invested Capital		(Q: Oct. 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	))
=	726.431	-	77.588	-	( 7.795	-	max(0, 173.082	-	223.752	+	7.795	))
=	641.048

	Invested Capital		(Q: Apr. 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	))
=	770.213	-	190.738	-	( 5.757	-	max(0, 218.023	-	277.597	+	5.757	))
=	573.718

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

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

Chemring Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Apr. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Oct. 2023		Q: Apr. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	43.804	/	( ( (295.006 + max(14.617, 0))	+	(326.658 + max(72.966, 0)) )	/	2 )
=	43.804	/	( ( 309.623	+	399.624 )	/	2 )
=	43.804	/	354.6235
=	12.35 %

where Working Capital is:

	Working Capital		(Q: Oct. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(50.305	+	123.873	+	12.181)	-	(77.588	+	0	+	94.154)
=	14.617

	Working Capital		(Q: Apr. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(108.135	+	155.444	+	8.261)	-	(190.738	+	0	+	8.136)
=	72.966

When net working capital is negative, 0 is used.

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

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

Chemring Group's Operating Margin % for the quarter that ended in Apr. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Apr. 2024 )	/	Revenue (Q: Apr. 2024 )
	=	21.902	/	279.599
	=	7.83 %

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.

Chemring Group Operating Income Related Terms

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Chemring Group (Chemring Group) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Chemring Group PLC (OTCPK:CMGMY) » Definitions » Operating Income

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CMGMF:USA CHGl:UK CHG:UK CMN1:Germany

Address

Old Salisbury Lane, Roke Manor, Romsey, Hampshire, GBR, SO51 0ZN

Website

http://www.chemring.co.uk

Chemring Group PLC is a defense technology company. The company's operating segment includes Sensors and Information; it is engaged in the development and manufacturing of electronic countermeasures, chemical and biological threat detection equipment, and explosive hazard detection (EHD) equipment. and Countermeasures and Energetics segment is engaged in the development and manufacturing of expendable countermeasures for air and sea platforms, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile components, propellants, separation sub-systems, actuators, and energetic materials. It generates maximum revenue from the Countermeasures and Energetics segment. Geographically, the majority of the revenue for the company is generated from UK.