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HFFG (HF Foods Group) Operating Income : $16 Mil (TTM As of Jun. 2024)


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What is HF Foods Group Operating Income?

HF Foods Group's Operating Income for the three months ended in Jun. 2024 was $3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was $16 Mil.

Warning Sign:

HF Foods Group Inc has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. HF Foods Group's Operating Income for the three months ended in Jun. 2024 was $3 Mil. HF Foods Group's Revenue for the three months ended in Jun. 2024 was $302 Mil. Therefore, HF Foods Group's Operating Margin % for the quarter that ended in Jun. 2024 was 0.87%.

HF Foods 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. HF Foods Group's annualized ROC % for the quarter that ended in Jun. 2024 was 0.25%. HF Foods Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 7.99%.


HF Foods Group Operating Income Historical Data

The historical data trend for HF Foods 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.

HF Foods Group Operating Income Chart

HF Foods Group Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial 8.23 -5.61 29.48 4.82 8.97

HF Foods Group Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -1.58 2.08 11.22 -0.09 2.63

HF Foods 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 Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $16 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.


HF Foods Group  (NAS:HFFG) Operating Income Explanation

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

HF Foods Group's annualized ROC % for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=10.5 * ( 1 - 87.19% )/( (517.908 + 538.032)/ 2 )
=1.34505/527.97
=0.25 %

where

Invested Capital(Q: Mar. 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))
=603.065 - 66.942 - ( 18.215 - max(0, 150.635 - 185.486+18.215))
=517.908

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))
=616.867 - 64.867 - ( 13.968 - max(0, 164.059 - 193.611+13.968))
=538.032

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

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

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

ROC (Joel Greenblatt) %(Q: Jun. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2024  Q: Jun. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=19.812/( ( (149.804 + max(91.983, 0)) + (159.544 + max(94.489, 0)) )/ 2 )
=19.812/( ( 241.787 + 254.033 )/ 2 )
=19.812/247.91
=7.99 %

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)
=(50 + 107.908 + 9.363) - (66.942 + 0 + 8.346)
=91.983

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(51.415 + 119.232 + 8.996) - (64.867 + 0 + 20.287)
=94.489

When net working capital is negative, 0 is used.

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

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

HF Foods Group's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2024 )/Revenue (Q: Jun. 2024 )
=2.625/302.342
=0.87 %

* 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.


HF Foods Group Operating Income Related Terms

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HF Foods Group Business Description

Traded in Other Exchanges
Address
6325 South Rainbow Boulevard, Suite 420, Las Vegas, NV, USA, 89118
HF Foods Group Inc is an Asian food service distributor that markets and distributes fresh produce, seafood, frozen and dry food, and non-food products to Asian restaurants and other food service customers throughout the United States. The Company's business consists of one operating segment; HF Group, which operates solely in the United States. The Company's customer base consists of Chinese and Asian restaurants, and it provides sales and service support to customers who mainly converse in Mandarin or Chinese dialects.
Executives
Xiao Mou Zhang director, officer: Chief Executive Officer 6001 W. MARKET STREET, GREENSBORO NC 27409
Prudence H Chiang director 6325 S RAINBOW BLVD STE 420, LAS VEGAS NV 89118
Valerie Chase director SOUTH 6325 RAINBOW BOULEVARD, SUITE 420, LAS VEGAS NV 89118
Xi Lin officer: Chief Operating Officer 6001 W. MARKET STREET, GREENSBORO NC 27409
Russell T. Libby director SYSCO CORPORATION, 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Christine Chang officer: See Remarks 19319 ARENTH AVENUE, CITY OF INDUSTRY CA 91748
Hong Wang director 5811 WILDROSE DRIVE, GREENSBORO NC 27410
Carlos Antonio Rodriguez officer: Chief Financial Officer 6325 SOUTH RAINBOW BOULEVARD, SUITE 420, LAS VEGAS NV 89118
Jose Maroto director 6325 SOUTH RAINBOW BOULEVARD, SUITE 420, LAS VEGAS NV 89118
Kong Hian Lee officer: Chief Financial Officer 19319 ARENTH AVENUE, CITY OF INDUSTRY CA 91748
Spot Light Investments, Llc 10 percent owner 6001 W. MARKET STREET, GREENSBORO NC 27409
Ren Hua Zheng director 2 DANDY DRIVE, COS COB CT 06807
Caixuan Xu officer: Chief Financial Officer 6001 W. MARKET ST, GREENSBORO NC 27409
Zhehui Ni director ROOM 1704, BUILDING #16, NO. 58 AOMEN ROAD, SHANGHAI F4 200061
Irrevocable Trust For Raymond Ni 10 percent owner 6001 WEST MARKET STREET, GREENSBORO NC 27409