CPM Group (HKSE:01932) Operating Income : HK$9.0 Mil (TTM As of Dec. 2023)

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What is CPM Group Operating Income?

CPM Group's Operating Income for the six months ended in Dec. 2023 was HK$13.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$9.0 Mil.

Warning Sign:

CPM Group Ltd had lost money in 67% of the time over the past 3quarters.

Operating Margin % is calculated as Operating Income divided by its Revenue. CPM Group's Operating Income for the six months ended in Dec. 2023 was HK$13.6 Mil. CPM Group's Revenue for the six months ended in Dec. 2023 was HK$225.2 Mil. Therefore, CPM Group's Operating Margin % for the quarter that ended in Dec. 2023 was 6.03%.

CPM Group's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. CPM Group's annualized ROC % for the quarter that ended in Dec. 2023 was 4.02%. CPM Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -48.24%.

CPM Group Operating Income Historical Data

The historical data trend for CPM Group'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.

CPM Group Operating Income Chart

CPM Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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-37.44

16.55

-38.61

-37.56

9.03

CPM Group Semi-Annual Data
	Dec14	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													-26.79	-39.06	1.51	-4.56	13.59

CPM Group 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$9.0 Mil.

CPM Group (HKSE:01932) Operating Income Explanation

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

CPM Group'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 )
=	27.178 * ( 1 - 4.83% )	/	( (688.209	+	599.822)	/ 2 )
=	25.8653026	/	644.0155
=	4.02 %

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	))
=	1023.175	-	278.512	-	( 123.794	-	max(0, 493.526	-	549.98	+	123.794	))
=	688.209

	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	))
=	972.859	-	258.079	-	( 144.943	-	max(0, 381.47	-	496.428	+	144.943	))
=	599.822

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:

CPM Group'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 )
=	-103.198	/	( ( (164.194 + max(88.916, 0))	+	(148.778 + max(25.946, 0)) )	/	2 )
=	-103.198	/	( ( 253.11	+	174.724 )	/	2 )
=	-103.198	/	213.917
=	-48.24 %

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)
=	(297.396	+	29.065	+	40.967)	-	(278.512	+	0	+	0)
=	88.916

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(155.429	+	27.353	+	101.243)	-	(258.079	+	0	+	0)
=	25.946

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 %:

CPM Group'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 )
	=	13.589	/	225.204
	=	6.03 %

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.

CPM Group Operating Income Related Terms

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

CPM Group (HKSE:01932) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » CPM Group Ltd (HKSE:01932) » Definitions » Operating Income

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Traded in Other Exchanges

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Address

338 Hennessy Road, 31st Floor, CNT Tower, Wanchai, Hong Kong, HKG

Website

http://www.cpmgroup.com.hk

CPM Group Ltd is an investment holding company mainly engaged in the manufacture and sale of paint and coating products. The company has two reportable operating segments: the Paint Products segment which engages in the manufacture and sale of paint and coating products; and the Property Investment segment invests in industrial properties for their rental income potential. The company's principal products include industrial paint and coating products, architectural paint and coating products, general paint and coating, and ancillary products. It mainly distributes its products in the Mainland of China and Hong Kong markets. The group derives the majority of its revenue from Mainland China.

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