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Xtep International Holdings (HKSE:01368) Operating Income : HK$1,964 Mil (TTM As of Dec. 2024)


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What is Xtep International Holdings Operating Income?

Xtep International Holdings's Operating Income for the six months ended in Dec. 2024 was HK$859 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was HK$1,964 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Xtep International Holdings's Operating Income for the six months ended in Dec. 2024 was HK$859 Mil. Xtep International Holdings's Revenue for the six months ended in Dec. 2024 was HK$6,805 Mil. Therefore, Xtep International Holdings's Operating Margin % for the quarter that ended in Dec. 2024 was 12.62%.

Good Sign:

Xtep International Holdings Ltd operating margin is expanding. Margin expansion is usually a good sign.

Xtep International Holdings's 5-Year average Growth Rate for Operating Margin % was 2.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Xtep International Holdings's annualized ROC % for the quarter that ended in Dec. 2024 was 10.13%. Xtep International Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 37.66%.


Xtep International Holdings Operating Income Historical Data

The historical data trend for Xtep 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.

Xtep International Holdings Operating Income Chart

Xtep International Holdings 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 926.25 1,552.65 1,480.60 1,805.24 1,955.11

Xtep International Holdings Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 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 538.57 962.80 842.45 1,105.48 858.74

Xtep 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 Dec. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$1,964 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.


Xtep International Holdings  (HKSE:01368) Operating Income Explanation

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

Xtep International Holdings'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: Jun. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=1717.482 * ( 1 - 35.29% )/( (11058.851 + 10872.963)/ 2 )
=1111.3826022/10965.907
=10.13 %

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))
=18873.951 - 3659.558 - ( 4155.542 - max(0, 6671.3 - 13130.604+4155.542))
=11058.851

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))
=17048.739 - 2994.974 - ( 3180.802 - max(0, 5640.103 - 11989.969+3180.802))
=10872.963

Note: The Operating Income data used here is two times the semi-annual (Dec. 2024) data.

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

Xtep International Holdings'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: Jun. 2024  Q: Dec. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1937.632/( ( (2636.196 + max(2140.056, 0)) + (2582.449 + max(2931.79, 0)) )/ 2 )
=1937.632/( ( 4776.252 + 5514.239 )/ 2 )
=1937.632/5145.2455
=37.66 %

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)
=(4757.945 + 2367.003 + 7.6739999999991) - (3659.558 + 0 + 1333.008)
=2140.056

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4907.901 + 1703.635 + 637.927) - (2994.974 + 0 + 1322.699)
=2931.79

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2024) EBIT data.

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

Xtep International Holdings'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 )
=858.741/6805.41
=12.62 %

* 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.


Xtep International Holdings Operating Income Related Terms

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Xtep International Holdings Business Description

Traded in Other Exchanges
Address
No. 89 Jiayi Road, Xiamen Xtep Tower, Guanyinshan Siming District, Fujian Province, Xiamen, CHN, 361008
Xtep International Holdings Ltd is principally engaged in the design, development, manufacturing, sales, marketing and brand management of sports products including footwear, apparel and accessories for adults and children. With its core Xtep brand, as well as Saucony and Merrell under its diversified brand portfolio, and professional sports segments through an extensive distribution network of more than 8,100 stores. It has two reportable operating segments from continuing operations as follows: (a) mass market segment, including signature brand, Xtep; and (b) professional sports segment, including signature brands, Saucony and Merrell.
Executives
Ding Wang Fortune Limited 2201 Interest of corporation controlled by you
Group Success Investments Limited 2101 Beneficial owner
Guan Hong Development Limited 2201 Interest of corporation controlled by you
Ming Zhong Family Limited 2201 Interest of corporation controlled by you
Ubs Trustees (b.v.i.) Limited 2301 Trustee
Wan Xing International Holdings Limited 2201 Interest of corporation controlled by you
Ding Shui Po 2101 Beneficial owner
Ding Meiqing 2101 Beneficial owner
Ding Mingzhong 2101 Beneficial owner
Gsum Iv Holdings Limited 2101 Beneficial owner
Hillhouse Focused Growth Fund V, L.p. 2201 Interest of corporation controlled by you
Hillhouse Investment Management, Ltd. 2102 Investment manager

Xtep International Holdings Headlines

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