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Macau Legend Development (HKSE:01680) Operating Income : HK$-204.9 Mil (TTM As of Dec. 2023)


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What is Macau Legend Development Operating Income?

Macau Legend Development's Operating Income for the six months ended in Dec. 2023 was HK$-113.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$-204.9 Mil.

Warning Sign:

Macau Legend Development Ltd has never been profitable in the past 3 years. It lost money every year.

Operating Margin % is calculated as Operating Income divided by its Revenue. Macau Legend Development's Operating Income for the six months ended in Dec. 2023 was HK$-113.8 Mil. Macau Legend Development's Revenue for the six months ended in Dec. 2023 was HK$481.4 Mil. Therefore, Macau Legend Development's Operating Margin % for the quarter that ended in Dec. 2023 was -23.64%.

Warning Sign:

Macau Legend Development Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -49.9%.

Macau Legend Development's 5-Year average Growth Rate for Operating Margin % was -49.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Macau Legend Development's annualized ROC % for the quarter that ended in Dec. 2023 was 2.32%. Macau Legend Development's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -4.26%.


Macau Legend Development Operating Income Historical Data

The historical data trend for Macau Legend Development'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.

Macau Legend Development Operating Income Chart

Macau Legend Development 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 -137.61 -933.93 -787.28 -658.21 -204.88

Macau Legend Development 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 -405.51 -385.20 -273.01 -91.05 -113.83

Macau Legend Development 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$-204.9 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.


Macau Legend Development  (HKSE:01680) Operating Income Explanation

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

Macau Legend Development'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 )
=-227.66 * ( 1 - 176.27% )/( (7533.806 + 7424.79)/ 2 )
=173.636282/7479.298
=2.32 %

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))
=7027.189 - 572.125 - ( 94.749 - max(0, 1305.221 - 226.479+94.749))
=7533.806

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))
=6862.616 - 237.394 - ( 63.233 - max(0, 1010.02 - 210.452+63.233))
=7424.79

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:

Macau Legend Development'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 )
=-247.778/( ( (5901.98 + max(-551.759, 0)) + (5722.016 + max(-236.701, 0)) )/ 2 )
=-247.778/( ( 5901.98 + 5722.016 )/ 2 )
=-247.778/5811.998
=-4.26 %

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)
=(66.446 + 21.622 + 29.502) - (572.125 + 0 + 97.204)
=-551.759

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(91.211 + 21.321 + 19.448) - (237.394 + 0 + 131.287)
=-236.701

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 %:

Macau Legend Development'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 )
=-113.83/481.413
=-23.64 %

* 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.


Macau Legend Development Operating Income Related Terms

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Macau Legend Development (HKSE:01680) Business Description

Traded in Other Exchanges
N/A
Address
Avenida da Amizade e Avenida da, Palace Building, Macau Fisherman’s Wharf, Dr. Sun Yat Sen, Macau, MAC
Macau Legend Development Ltd is an investment holdings company. The company is one of the owners of entertainment and casino gaming facilities in Macau. The company currently has Macau Fisherman's Wharf operated by MFW Investment (MFW), which is a waterfront integrated gaming, hotel, convention and entertainment complex located on the Macau Peninsula. The company's businesses include 1) the provision of gaming services to SJM for the operation of Legend Palace Casino; 2) the operation of casino inside Savan Legend Resorts Hotel and Entertainment Complex in the Lao People's Democratic Republic (Lao PDR); and 3) the operation of hotels, entertainment and leisure facilities within its properties.
Executives
Chow Kam Fai, David
Chan Weng Lin
Wu Jo Hsuan 2202 Interest of your spouse
Perfect Achiever Group Limited 2101 Beneficial owner
Chan Mei Yi, Melinda
Chan Un Chan 2201 Interest of corporation controlled by you
Earth Group Ventures Ltd.
Li Chi Keung
Wong Hoi Ping
Elite Success International Limited 2101 Beneficial owner

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