AsiaInfo Technologies (HKSE:01675) Operating Income : HK$1,074 Mil (TTM As of Dec. 2023)

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What is AsiaInfo Technologies Operating Income?

AsiaInfo Technologies's Operating Income for the six months ended in Dec. 2023 was HK$842 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$1,074 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. AsiaInfo Technologies's Operating Income for the six months ended in Dec. 2023 was HK$842 Mil. AsiaInfo Technologies's Revenue for the six months ended in Dec. 2023 was HK$5,041 Mil. Therefore, AsiaInfo Technologies's Operating Margin % for the quarter that ended in Dec. 2023 was 16.71%.

Good Sign:

AsiaInfo Technologies Ltd operating margin is expanding. Margin expansion is usually a good sign.

AsiaInfo Technologies's 5-Year average Growth Rate for Operating Margin % was 8.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. AsiaInfo Technologies's annualized ROC % for the quarter that ended in Dec. 2023 was 19.50%. AsiaInfo Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 170.58%.

AsiaInfo Technologies Operating Income Historical Data

The historical data trend for AsiaInfo Technologies'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.

AsiaInfo Technologies Operating Income Chart

AsiaInfo Technologies Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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626.82

870.31

1,119.86

1,094.59

1,074.19

AsiaInfo Technologies Semi-Annual Data
	Dec15	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial											776.40	225.03	880.21	231.99	842.20

AsiaInfo Technologies 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$1,074 Mil.

AsiaInfo Technologies (HKSE:01675) Operating Income Explanation

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

AsiaInfo Technologies'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 )
=	1684.402 * ( 1 - 28.23% )	/	( (5811.172	+	6590.012)	/ 2 )
=	1208.8953154	/	6200.592
=	19.50 %

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	))
=	11011.339	-	2746.056	-	( 2454.111	-	max(0, 3218.776	-	7608.052	+	2454.111	))
=	5811.172

	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	))
=	12342.783	-	2228.62	-	( 3524.151	-	max(0, 4692.119	-	9186.244	+	3524.151	))
=	6590.012

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:

AsiaInfo Technologies'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 )
=	922.374	/	( ( (582.801 + max(-1234.331, 0))	+	(498.642 + max(-2494.228, 0)) )	/	2 )
=	922.374	/	( ( 582.801	+	498.642 )	/	2 )
=	922.374	/	540.7215
=	170.58 %

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)
=	(1585.97	+	37.924	+	288.634)	-	(2746.056	+	0	+	400.803)
=	-1234.331

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1515.704	+	111.051	+	474.691)	-	(2228.62	+	0	+	2367.054)
=	-2494.228

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 %:

AsiaInfo Technologies'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 )
	=	842.201	/	5040.818
	=	16.71 %

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.

AsiaInfo Technologies Operating Income Related Terms

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

AsiaInfo Technologies (HKSE:01675) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » AsiaInfo Technologies Ltd (HKSE:01675) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

51N:Germany

Address

Northwest Wang East Road, No.10 East, Yaxin Building, East District, Zhongguancun Software Park Phase II, Hai Dian District, Beijing, CHN, 100193

Website

https://www.asiainfo.com

AsiaInfo Technologies Ltd is a provider of telecom software products and related service. The company's product portfolio currently consists of CRM, charging & billing, and big data products to IoT and intelligent network products. Its software products are deployed using an on-premises, project-based delivery model, and are accompanied by end-to-end, professional deployment services. It operates in two segments: Software business segment that comprises software products and related services; data-driven operation services; and others, including sale of third-party hardware and software, system integration services, business consulting services and corporate trainings. The Network security business segment engages in the provision of network security-related software products and services.

Executives

Ccp Ii Gp Ltd.	2201 Interest of corporation controlled by you
Bei Jing Ya Xin Xin Xing Zhe Zi Xun You Xian Ze Ren Gong Si	2201 Interest of corporation controlled by you
Asiainfo Security Technologies Company Limited	2101 Beneficial owner
Zhang Yichen	2201 Interest of corporation controlled by you
Trustar Capital Holdings Limited	2201 Interest of corporation controlled by you
Tian Suning	2201 Interest of corporation controlled by you
Skipper Investment Limited	2101 Beneficial owner
Cp Management Holdings Limited	2201 Interest of corporation controlled by you
Ccp Ltd.	2201 Interest of corporation controlled by you
Citic Capital China Partners Ii, L.p.	2201 Interest of corporation controlled by you
Citic Capital Holdings Limited	2201 Interest of corporation controlled by you
Power Joy (cayman) Limited	2201 Interest of corporation controlled by you
The Core Trust Company Limited	2501 Other
Noble (nominees) Limited	2302 Custodian
Sino Venture Capital 1 Vcc	2201 Interest of corporation controlled by you

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