GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Best Food Holding Co Ltd (HKSE:01488) » Definitions » Operating Income

Best Food Holding Co (HKSE:01488) Operating Income : HK$-25.3 Mil (TTM As of Dec. 2023)


View and export this data going back to 2011. Start your Free Trial

What is Best Food Holding Co Operating Income?

Best Food Holding Co's Operating Income for the six months ended in Dec. 2023 was HK$-28.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$-25.3 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Best Food Holding Co's Operating Income for the six months ended in Dec. 2023 was HK$-28.3 Mil. Best Food Holding Co's Revenue for the six months ended in Dec. 2023 was HK$334.0 Mil. Therefore, Best Food Holding Co's Operating Margin % for the quarter that ended in Dec. 2023 was -8.46%.

Warning Sign:

Best Food Holding Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -84.7%.

Best Food Holding Co's 5-Year average Growth Rate for Operating Margin % was -84.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Best Food Holding Co's annualized ROC % for the quarter that ended in Dec. 2023 was -4.59%. Best Food Holding Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -120.02%.


Best Food Holding Co Operating Income Historical Data

The historical data trend for Best Food Holding Co'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.

Best Food Holding Co Operating Income Chart

Best Food Holding Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -7.48 -107.41 -96.58 -97.37 -25.33

Best Food Holding Co Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 -46.02 -56.86 -43.20 2.92 -28.25

Best Food Holding Co 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. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$-25.3 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.


Best Food Holding Co  (HKSE:01488) Operating Income Explanation

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

Best Food Holding Co's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-56.506 * ( 1 - -2.7% )/( (1345.459 + 1182.939)/ 2 )
=-58.031662/1264.199
=-4.59 %

where

Invested Capital(Q: Jun. 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))
=1421.921 - 181.693 - ( 96.153 - max(0, 344.51 - 239.279+96.153))
=1345.459

Invested Capital(Q: Dec. 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))
=1212.302 - 134.803 - ( 78.486 - max(0, 325.926 - 220.486+78.486))
=1182.939

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

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

Best Food Holding Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-282.206/( ( (241.519 + max(-175.027, 0)) + (228.764 + max(-89.105, 0)) )/ 2 )
=-282.206/( ( 241.519 + 228.764 )/ 2 )
=-282.206/235.1415
=-120.02 %

where Working Capital is:

Working Capital(Q: Jun. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(14.554 + 28.25 + 34.364) - (181.693 + 0 + 70.502)
=-175.027

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(74.285 + 25.569 + 42.146) - (134.803 + 0 + 96.302)
=-89.105

When net working capital is negative, 0 is used.

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

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

Best Food Holding Co's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=-28.253/334.008
=-8.46 %

* 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.


Best Food Holding Co Operating Income Related Terms

Thank you for viewing the detailed overview of Best Food Holding Co's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Best Food Holding Co (HKSE:01488) Business Description

Traded in Other Exchanges
N/A
Address
No. 8 Finance Street, Suite 11, 70th Floor, Two International Finance Centre, Central, Hong Kong, HKG
Best Food Holding Co Ltd is principally engaged in the operation of chain restaurants. It is involved in the Chinese fast-food restaurant chain and actively seeks relevant investment opportunities along the value chain of the catering industry. Its revenue is generated from the Food and beverage business. Geographically, it derives maximum revenue from PRC. It also has operations in the USA, Canada, Italy, Germany, Hong Kong, South American countries, UK, the Netherlands, the Middle East and Africa, Other European countries, and Other Asian countries.
Executives
Easyknit International Holdings Limited 2201 Interest of corporation controlled by you
Exponential Fortune Group Limited 2201 Interest of corporation controlled by you
Fortune Eight Alps Limited 2201 Interest of corporation controlled by you
Hony Capital Fund Viii (cayman), L.p. 2201 Interest of corporation controlled by you
Hony Capital Fund Viii Gp (cayman) Limited 2201 Interest of corporation controlled by you
Hony Capital Fund Viii Gp (cayman), L.p. 2201 Interest of corporation controlled by you
Hony Group Management Limited 2201 Interest of corporation controlled by you
Hony Managing Partners Limited 2201 Interest of corporation controlled by you
Sonic Tycoon Limited 2101 Beneficial owner
Zhao John Huan 2201 Interest of corporation controlled by you

Best Food Holding Co (HKSE:01488) Headlines

No Headlines