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HMRZF (Hennes & Mauritz AB) Operating Income : $1,610 Mil (TTM As of Aug. 2024)


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What is Hennes & Mauritz AB Operating Income?

Hennes & Mauritz AB's Operating Income for the three months ended in Aug. 2024 was $345 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2024 was $1,610 Mil.

Warning Sign:

Hennes & Mauritz AB has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Hennes & Mauritz AB's Operating Income for the three months ended in Aug. 2024 was $345 Mil. Hennes & Mauritz AB's Revenue for the three months ended in Aug. 2024 was $5,679 Mil. Therefore, Hennes & Mauritz AB's Operating Margin % for the quarter that ended in Aug. 2024 was 6.07%.

Warning Sign:

Hennes & Mauritz AB operating margin has been in a 5-year decline. The average rate of decline per year is -5.9%.

Hennes & Mauritz AB's 5-Year average Growth Rate for Operating Margin % was -5.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Hennes & Mauritz AB's annualized ROC % for the quarter that ended in Aug. 2024 was 6.30%. Hennes & Mauritz AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2024 was 18.02%.


Hennes & Mauritz AB Operating Income Historical Data

The historical data trend for Hennes & Mauritz AB'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.

Hennes & Mauritz AB Operating Income Chart

Hennes & Mauritz AB Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,799.73 357.98 1,732.81 694.88 1,271.49

Hennes & Mauritz AB Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 434.02 402.18 200.55 662.60 344.84

Hennes & Mauritz AB 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 Aug. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,610 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.


Hennes & Mauritz AB  (OTCPK:HMRZF) Operating Income Explanation

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

Hennes & Mauritz AB's annualized ROC % for the quarter that ended in Aug. 2024 is calculated as:

ROC % (Q: Aug. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: May. 2024 ) + Invested Capital (Q: Aug. 2024 ))/ count )
=1379.376 * ( 1 - 25.22% )/( (16148.873 + 16580.624)/ 2 )
=1031.4973728/16364.7485
=6.30 %

where

Invested Capital(Q: May. 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))
=16719.937 - 0 - ( 2255.421 - max(0, 6761.798 - 7332.862+2255.421))
=16148.873

Invested Capital(Q: Aug. 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))
=17383.977 - 0 - ( 2280.803 - max(0, 7070.316 - 7873.669+2280.803))
=16580.624

Note: The Operating Income data used here is four times the quarterly (Aug. 2024) data.

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

Hennes & Mauritz AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Aug. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: May. 2024  Q: Aug. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1379.376/( ( (7615.185 + max(-534.693, 0)) + (7691.382 + max(-326.462, 0)) )/ 2 )
=1379.376/( ( 7615.185 + 7691.382 )/ 2 )
=1379.376/7653.2835
=18.02 %

where Working Capital is:

Working Capital(Q: May. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1494.405 + 3583.036 + 9.0949470177293E-13) - (0 + 0 + 5612.134)
=-534.693

Working Capital(Q: Aug. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1575.812 + 4017.055 + -0.0010000000002037) - (0 + 0 + 5919.328)
=-326.462

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Aug. 2024) EBIT data.

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

Hennes & Mauritz AB's Operating Margin % for the quarter that ended in Aug. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Aug. 2024 )/Revenue (Q: Aug. 2024 )
=344.844/5679.486
=6.07 %

* 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.


Hennes & Mauritz AB Operating Income Related Terms

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Hennes & Mauritz AB Business Description

Traded in Other Exchanges
Address
Master Samuelsgatan 46A, Stockholm, SWE, SE-106 38
Hennes & Mauritz is a global multibrand fashion conglomerate that was founded in 1947. Its flagship H&M brand accounts for most of revenue, but the newer brands (COS, &Other Stories, Monki, Weekday, and Arket) are growing a bit faster. H&M commands low-single-digit market share in a fragmented global apparel market. Around 65% of revenue is generated in Europe and Africa, 13% in Asia and Oceania, and 23% in North and South America. The company operates around 4,500 stores globally of which 3,947 are H&M-brand stores.