Active Fine Chemicals (DHA:ACTIVEFINE) Operating Income: BDT389 Mil (TTM As of Mar. 2023)


DHA:ACTIVEFINE Active Fine Chemicals Ltd DHA:ACTIVEFINE
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Price BDT7.00
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What is Active Fine Chemicals Operating Income?

Active Fine Chemicals DHA:ACTIVEFINE 10 Operating Income is BDT389 Mil as of Mar. 2023. GuruFocus rates DHA:ACTIVEFINE with a GF Score™ of 10/100.

Active Fine Chemicals's Operating Income for the three months ended in Mar. 2023 was BDT47 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2023 was BDT389 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Active Fine Chemicals's Operating Income for the three months ended in Mar. 2023 was BDT47 Mil. Active Fine Chemicals's Revenue for the three months ended in Mar. 2023 was BDT291 Mil. Therefore, Active Fine Chemicals's Operating Margin % for the quarter that ended in Mar. 2023 was 16.21%.

Active Fine Chemicals'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. Active Fine Chemicals's annualized ROC % for the quarter that ended in Mar. 2023 was 2.17%. Active Fine Chemicals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2023 was 4.04%.

Active Fine Chemicals  (DHA:ACTIVEFINE) Operating Income Explanation

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

Active Fine Chemicals's annualized ROC % for the quarter that ended in Mar. 2023 is calculated as:

ROC % (Q: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2022 ) + Invested Capital (Q: Mar. 2023 ))/ count )
=188.444 * ( 1 - 0.03% )/( (8697.903 + 8681.194)/ 2 )
=188.3874668/8689.5485
=2.17 %

where

Invested Capital(Q: Dec. 2022 )
=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))
=9195.837 - 12.511 - ( 485.423 - max(0, 3631.121 - 4910.106+485.423))
=8697.903

Invested Capital(Q: Mar. 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))
=9262.284 - 11.566 - ( 569.524 - max(0, 3728.365 - 5030.155+569.524))
=8681.194

Note: The Operating Income data used here is four times the quarterly (Mar. 2023) data.

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

Active Fine Chemicals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2022  Q: Mar. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=316.312/( ( (3989.757 + max(3858.503, 0)) + (3936.155 + max(3880.046, 0)) )/ 2 )
=316.312/( ( 7848.26 + 7816.201 )/ 2 )
=316.312/7832.2305
=4.04 %

where Working Capital is:

Working Capital(Q: Dec. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1871.55 + 1555.79 + 997.343) - (12.511 + 0 + 553.669)
=3858.503

Working Capital(Q: Mar. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1899.366 + 1562.583 + 998.682) - (11.566 + 0 + 569.019)
=3880.046

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2023) EBIT data.

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

Active Fine Chemicals's Operating Margin % for the quarter that ended in Mar. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2023 )/Revenue (Q: Mar. 2023 )
=47.111/290.56
=16.21 %

* 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.

Active Fine Chemicals Operating Income Related Terms

Active Fine Chemicals Operating Income Historical Data

* Premium members only.

The historical data trend for Active Fine Chemicals'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.

Active Fine Chemicals Operating Income Chart

Active Fine Chemicals Annual Data
Trend Dec13 Dec14 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22
Operating Income
Get a 7-Day Free Trial Premium Member Only 778.45 914.22 158.87 309.27 336.77

Active Fine Chemicals Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Dec22 Mar23
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 10.95 52.21 272.43 69.87 47.11
DHA:ACTIVEFINE
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Active Fine Chemicals Ltd DHA:ACTIVEFINE
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Active Fine Chemicals 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 Mar. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was BDT389 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of BDT389 Mil mean?
Active Fine Chemicals (DHA:ACTIVEFINE) has a Operating Income of BDT389 Mil as of Mar. 2023. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Active Fine Chemicals and its competitors.
Is Active Fine Chemicals' Operating Income too high?
Active Fine Chemicals' current Operating Income is BDT389 Mil. Overall, Active Fine Chemicals has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Active Fine Chemicals' Operating Income compare to DOW and CE?
Active Fine Chemicals' Operating Income of BDT389 Mil can be compared against companies in the Chemicals industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Chemicals company?
A good Operating Income depends on the Chemicals industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Active Fine Chemicals and its competitors. Active Fine Chemicals's current Operating Income is BDT389 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Active Fine Chemicals stock overvalued right now?
Active Fine Chemicals (DHA:ACTIVEFINE) has a current Operating Income of BDT389 Mil. The current Operating Income is BDT389 Mil. Active Fine Chemicals' overall GF Score™ is 10/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Active Fine Chemicals (DHA:ACTIVEFINE), the current Operating Income is BDT389 Mil as of Mar. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Active Fine Chemicals Business Description

Address House number 87-89, Road number 04, Block number B, Niketon, Gulshan-1, Dhaka, BGD, 1212
Active Fine Chemicals Ltd is a Bangladesh based chemical company engaged in manufacturing active pharmaceutical ingredients and laboratory reagents. Its product offerings include azithromycin dihydrate, erythromycin ethyl succinate, erythromycin stearate, pantoprazole sodium sesquihydrate, venlafaxine HCL, sitagliptin phosphate monohydrate, and pregabalin. While it also manufactures laboratory reagents including HPLC Grade solvents, solvents, and powder reagents.
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Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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