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Aramex PJSC (DFM:ARMX) Operating Income : د.إ279 Mil (TTM As of Dec. 2024)


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What is Aramex PJSC Operating Income?

Aramex PJSC's Operating Income for the three months ended in Dec. 2024 was د.إ76 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was د.إ279 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Aramex PJSC's Operating Income for the three months ended in Dec. 2024 was د.إ76 Mil. Aramex PJSC's Revenue for the three months ended in Dec. 2024 was د.إ1,695 Mil. Therefore, Aramex PJSC's Operating Margin % for the quarter that ended in Dec. 2024 was 4.50%.

Warning Sign:

Aramex PJSC operating margin has been in a 5-year decline. The average rate of decline per year is -18.9%.

Aramex PJSC's 5-Year average Growth Rate for Operating Margin % was -18.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Aramex PJSC's annualized ROC % for the quarter that ended in Dec. 2024 was 5.88%. Aramex PJSC's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 18.87%.


Aramex PJSC Operating Income Historical Data

The historical data trend for Aramex PJSC'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.

Aramex PJSC Operating Income Chart

Aramex PJSC Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 521.20 270.71 259.02 273.35 279.13

Aramex PJSC Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 95.31 95.60 44.75 62.43 76.36

Aramex PJSC 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 Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was د.إ279 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.


Aramex PJSC  (DFM:ARMX) Operating Income Explanation

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

Aramex PJSC's annualized ROC % for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=305.44 * ( 1 - 6.37% )/( (4935.587 + 4792.411)/ 2 )
=285.983472/4863.999
=5.88 %

where

Invested Capital(Q: Sep. 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))
=5703.794 - 320.752 - ( 447.455 - max(0, 1266.466 - 1827.815+447.455))
=4935.587

Invested Capital(Q: Dec. 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))
=5725.621 - 426.322 - ( 506.888 - max(0, 1291.965 - 1908.006+506.888))
=4792.411

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

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

Aramex PJSC's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2024  Q: Dec. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=371.064/( ( (1693.426 + max(335.274, 0)) + (1691.641 + max(211.897, 0)) )/ 2 )
=371.064/( ( 2028.7 + 1903.538 )/ 2 )
=371.064/1966.119
=18.87 %

where Working Capital is:

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1047.685 + 0 + 332.675) - (320.752 + 0 + 724.334)
=335.274

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1104.844 + 0 + 193.94) - (426.322 + 0 + 660.565)
=211.897

When net working capital is negative, 0 is used.

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

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

Aramex PJSC's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2024 )/Revenue (Q: Dec. 2024 )
=76.36/1695.133
=4.50 %

* 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.


Aramex PJSC Operating Income Related Terms

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Aramex PJSC Business Description

Traded in Other Exchanges
N/A
Address
Plot WF 07, Jebel Ali, P.O. Box: 95946, Dubai Logistics City, Dubai, ARE, 2302A
Aramex PJSC is a logistics company domiciled in the United Arab Emirates. The company organizes itself into four segments: Courier; Freight Forwarding, Logistics, and Other operations. The Courier segment, which contributes the majority of revenue, delivers small packages across the globe. Freight forwarding is the forward freight through air, land, and ocean transport. The Logistics segment offers warehousing, supply-chain management, and inventory management. The Other operations segment includes catalog shipping services, document storage, airline ticketing and travel, and visa services. The company operates globally, especially in Gulf Cooperation Council (GCC), Middle East, North Africa and Turkey, East and South Africa, Europe, North America, South Asia, North Asia and Oceania.

Aramex PJSC Headlines

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