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Suga International Holdings (HKSE:00912) Operating Income : HK$32 Mil (TTM As of Sep. 2023)


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What is Suga International Holdings Operating Income?

Suga International Holdings's Operating Income for the six months ended in Sep. 2023 was HK$27 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was HK$32 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Suga International Holdings's Operating Income for the six months ended in Sep. 2023 was HK$27 Mil. Suga International Holdings's Revenue for the six months ended in Sep. 2023 was HK$718 Mil. Therefore, Suga International Holdings's Operating Margin % for the quarter that ended in Sep. 2023 was 3.83%.

Warning Sign:

Suga International Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -10.1%.

Suga International Holdings's 5-Year average Growth Rate for Operating Margin % was -10.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Suga International Holdings's annualized ROC % for the quarter that ended in Sep. 2023 was 5.75%. Suga International Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 7.64%.


Suga International Holdings Operating Income Historical Data

The historical data trend for Suga International Holdings'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.

Suga International Holdings Operating Income Chart

Suga International Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 62.33 33.81 101.89 76.05 28.71

Suga International Holdings Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 31.69 44.37 24.08 4.63 27.46

Suga International Holdings 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. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$32 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.


Suga International Holdings  (HKSE:00912) Operating Income Explanation

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

Suga International Holdings's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

ROC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=54.91 * ( 1 - 15.92% )/( (848.244 + 756.415)/ 2 )
=46.168328/802.3295
=5.75 %

where

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))
=1231.23 - 244.731 - ( 138.255 - max(0, 408.166 - 870.399+138.255))
=848.244

Invested Capital(Q: Sep. 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))
=1146.951 - 220.203 - ( 170.333 - max(0, 359.271 - 829.583+170.333))
=756.415

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

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

Suga International Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2023  Q: Sep. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=54.282/( ( (327.008 + max(444.111, 0)) + (244.369 + max(405.743, 0)) )/ 2 )
=54.282/( ( 771.119 + 650.112 )/ 2 )
=54.282/710.6155
=7.64 %

where Working Capital is:

Working Capital(Q: Mar. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(306.029 + 425.53 + 0) - (244.731 + 0 + 42.717)
=444.111

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(326.719 + 331.946 + 0) - (220.203 + 0 + 32.719)
=405.743

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

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

Suga International Holdings's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2023 )/Revenue (Q: Sep. 2023 )
=27.455/717.521
=3.83 %

* 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.


Suga International Holdings Operating Income Related Terms

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Suga International Holdings (HKSE:00912) Business Description

Traded in Other Exchanges
N/A
Address
No. 1 Wang Kwong Road, 22nd Floor, Tower B, Billion Centre, Kowloon Bay, Kowloon, Hong Kong, HKG
Suga International Holdings Ltd is an investment holding company. The company is engaged in the research and development, manufacture, and sale of electronic and other products. Its operating segment includes Electronic products and Pet related products. The company generates maximum revenue from the Electronic products segment. It offers Professional audio equipment, an Asset tracker with IoT technology; Telephones for the hearing impaired; Telecommunication products, General household consumer appliances, and Electronic payment products. Geographically, it derives a majority of its revenue from the United States of America and also has a presence in Japan, The People's Republic of China, Taiwan, Australia, Germany, France, the United Kingdom, and other countries.
Executives
Ng Man Cheuk 2101 Beneficial owner
Lee Wai Fun 2101 Beneficial owner
Ng Chi Ho 2101 Beneficial owner
Billion Linkage Limited
Superior View Inc. 2101 Beneficial owner

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