EBS (Emergent BioSolutions) Operating Income : $-116 Mil (TTM As of Sep. 2024)

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What is Emergent BioSolutions Operating Income?

Emergent BioSolutions's Operating Income for the three months ended in Sep. 2024 was $65 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $-116 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Emergent BioSolutions's Operating Income for the three months ended in Sep. 2024 was $65 Mil. Emergent BioSolutions's Revenue for the three months ended in Sep. 2024 was $284 Mil. Therefore, Emergent BioSolutions's Operating Margin % for the quarter that ended in Sep. 2024 was 22.73%.

Emergent BioSolutions'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. Emergent BioSolutions's annualized ROC % for the quarter that ended in Sep. 2024 was 16.03%. Emergent BioSolutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 104.59%.

Emergent BioSolutions Operating Income Historical Data

The historical data trend for Emergent BioSolutions'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.

Emergent BioSolutions Operating Income Chart

Emergent BioSolutions Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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114.10

438.50

383.10

-163.30

-201.50

Emergent BioSolutions 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															-23.90	-43.80	39.80	-176.30	64.50

Emergent BioSolutions 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 $-116 Mil.

Emergent BioSolutions (NYSE:EBS) Operating Income Explanation

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

Emergent BioSolutions'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 )
=	258 * ( 1 - 19.38% )	/	( (1365.6	+	1229.7)	/ 2 )
=	207.9996	/	1297.65
=	16.03 %

where

	Invested Capital		(Q: Jun. 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	))
=	1513.5	-	113.1	-	( 69.7	-	max(0, 619.7	-	654.5	+	69.7	))
=	1365.6

	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	))
=	1477.8	-	98.2	-	( 149.9	-	max(0, 229.9	-	661.4	+	149.9	))
=	1229.7

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

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

Emergent BioSolutions'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 )
=	602.8	/	( ( (306.2 + max(304.7, 0))	+	(278.1 + max(263.7, 0)) )	/	2 )
=	602.8	/	( ( 610.9	+	541.8 )	/	2 )
=	602.8	/	576.35
=	104.59 %

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)
=	(120.7	+	317.5	+	71)	-	(113.1	+	0	+	91.4)
=	304.7

	Working Capital		(Q: Sep. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(102.6	+	322.7	+	67.5)	-	(98.2	+	0	+	130.9)
=	263.7

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 %:

Emergent BioSolutions'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 )
	=	64.5	/	283.8
	=	22.73 %

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.

Emergent BioSolutions Operating Income Related Terms

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Emergent BioSolutions Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Emergent BioSolutions Inc (NYSE:EBS) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

0IGA:UK ER4:Germany ER4:Germany

Address

300 Professional Drive, Gaithersburg, MD, USA, 20879

Website

https://www.emergentbiosolutions.com

Emergent BioSolutions Inc offers public health products to the government and healthcare providers. The company operates across three different segments, namely Commercial, Products, and Services. The key revenue is generated through the commercial segment which consists of NARCAN and other commercial products.

Executives

Donald W Degolyer	director	400 PROFESSIONAL DR. STE. 400, GAITHERSBURG MD 20879
Marvin L White	director	2273 RESEARCH BLVD, SUITE 400, ROCKVILLE MD 20850
Kathryn C Zoon	director	400 PROFESSIONAL DRIVE, SUITE 400, GAITHERSBURG MD 20879
Neal Franklin Fowler	director	C/O EMERGENT BIOSOLUTIONS INC., 400 PROFESSIONAL DR. STE. 400, GAITHERSBURG MD 20879
William Hartzel	officer: SVP, Bioservices	400 PROFESSIONAL DRIVE, STE. 400, GAITHERSBURG MD 20879
Miller H Haywood Iii	officer: Interim CEO	EMERGENT BIOSOLUTIONS INC., 400 PROFESSIONAL DR. STE. 400, GAITHERSBURG MD 20879
Paul Anthony Williams	officer: SVP, Products Business	400 PROFESSIONAL DRIVE, SUITE 400, GAITHERSBURG MD 20879
Ronald Richard	director	2273 RESEARCH BLVD, SUITE 400, ROCKVILLE MD 20850
Sujata Tyagi Dayal	director	C/O BIOMET, INC., P.O. BOX 587, WARSAW IN 46581-0587
Keith Katkin	director	C/O UROVANT SCIENCES, INC., 5281 CALIFORNIA AVENUE, SUITE 100, IRVINE CA 92617
Glessner Coleen	officer: EVP, Quality & Ethics, and CPL	400 PROFESSIONAL DRIVE, SUITE 400, GAITHERSBURG MD 20879
Jennifer Lynne Fox	officer: EVP, Ext Aff, GC, Corp Sec	400 PROFESSIONAL DRIVE, GAITHERSBURG MD 20879
Richard S Lindahl	officer: EVP, Chief Financial Officer	NEXTEL, 2001 EDMUND HALLEY DR, RESTON VA 20191
Sue Bailey	director	400 PROFESSIONAL DRIVE, SUITE 400, GAITHERSBURG MD 20850
Adam Havey	officer: EVP, BioDefense Division	2273 RESEARCH BLVD SUITE 400, ROCKVILLE MD 20853