PSG Financial Services Limited (JSE:KST) Operating Income : R1,177 Mil (TTM As of Aug. 2023)

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What is PSG Financial Services Limited Operating Income?

PSG Financial Services Limited's Operating Income for the six months ended in Aug. 2023 was R546 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2023 was R1,177 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. PSG Financial Services Limited's Operating Income for the six months ended in Aug. 2023 was R546 Mil. PSG Financial Services Limited's Revenue for the six months ended in Aug. 2023 was R3,548 Mil. Therefore, PSG Financial Services Limited's Operating Margin % for the quarter that ended in Aug. 2023 was 15.38%.

Good Sign:

PSG Financial Services Limited operating margin is expanding. Margin expansion is usually a good sign.

PSG Financial Services Limited's 5-Year average Growth Rate for Operating Margin % was 4.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. PSG Financial Services Limited's annualized ROC % for the quarter that ended in Aug. 2023 was 0.63%. PSG Financial Services Limited's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2023 was 641.78%.

PSG Financial Services Limited Operating Income Historical Data

The historical data trend for PSG Financial Services Limited'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.

PSG Financial Services Limited Operating Income Chart

PSG Financial Services Limited Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Operating Income

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689.93

776.41

848.68

1,176.50

1,133.39

PSG Financial Services Limited Semi-Annual Data
	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Operating Income	Get a 7-Day Free Trial															508.48	668.03	502.21	631.19	545.87

PSG Financial Services Limited 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. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was R1,177 Mil.

PSG Financial Services Limited (JSE:KST) Operating Income Explanation

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

PSG Financial Services Limited's annualized ROC % for the quarter that ended in Aug. 2023 is calculated as:

	ROC % (Q: Aug. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2023 )	+	Invested Capital (Q: Aug. 2023 ))	/ count )
=	1091.744 * ( 1 - 29.05% )	/	( (157845.439	+	87334.729)	/ 2 )
=	774.592368	/	122590.084
=	0.63 %

where

	Invested Capital		(Q: Feb. 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	))
=	88257.014	-	2780.182	-	( 8272.525	-	max(0, 83219.026	-	10850.419	+	8272.525	))
=	157845.439

	Invested Capital		(Q: Aug. 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	))
=	91173.308	-	2559.703	-	( 1478.522	-	max(0, 2559.703	-	3838.579	+	1478.522	))
=	87334.729

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

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

PSG Financial Services Limited's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Aug. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Feb. 2023		Q: Aug. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1507.998	/	( ( (245.098 + max(-291.71, 0))	+	(224.848 + max(-444.116, 0)) )	/	2 )
=	1507.998	/	( ( 245.098	+	224.848 )	/	2 )
=	1507.998	/	234.973
=	641.78 %

where Working Capital is:

	Working Capital		(Q: Feb. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2160.45	+	0	+	328.022)	-	(2780.182	+	0	+	0)
=	-291.71

	Working Capital		(Q: Aug. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1996.365	+	0	+	119.222)	-	(2559.703	+	0	+	0)
=	-444.116

When net working capital is negative, 0 is used.

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

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

PSG Financial Services Limited's Operating Margin % for the quarter that ended in Aug. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Aug. 2023 )	/	Revenue (Q: Aug. 2023 )
	=	545.872	/	3548.45
	=	15.38 %

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.

PSG Financial Services Limited Operating Income Related Terms

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PSG Financial Services Limited (JSE:KST) Business Description

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GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » PSG Financial Services Limited (JSE:KST) » Definitions » Operating Income

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KFS:Namibia

Address

3 Howick Close, 4th Floor, The Edge, Tyger Waterfront, Tyger Valley, Bellville, ZAF, 7530

Website

https://www.psg.co.za

PSG Financial Services Limited is an independent financial services group. Business is executed through three operating divisions: PSG Wealth, PSG Asset Management, and PSG Insure. PSG Wealth provides the group with nearly half of its income, with PSG Insure outweighing PSG Asset Management. Through the Wealth unit, PSG delivers a comprehensive suite of products to individuals, families, and businesses. Some of the PSG Wealth offerings include investment products, stockbroking, estate and trust services, and many other related products. Offerings under PSG Insure cover a range of short-term insurance solutions, for both personal and commercial needs. PSG rounds out its portfolio with the PSG Asset Management group which offers a range of local unit trusts and international funds.

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