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Lesaka Technologies (JSE:LSK) Operating Income : R86 Mil (TTM As of Mar. 2024)


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What is Lesaka Technologies Operating Income?

Lesaka Technologies's Operating Income for the three months ended in Mar. 2024 was R27 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was R86 Mil.

Warning Sign:

Lesaka Technologies Inc had lost money in 67% of the time over the past 12quarters.

Operating Margin % is calculated as Operating Income divided by its Revenue. Lesaka Technologies's Operating Income for the three months ended in Mar. 2024 was R27 Mil. Lesaka Technologies's Revenue for the three months ended in Mar. 2024 was R2,605 Mil. Therefore, Lesaka Technologies's Operating Margin % for the quarter that ended in Mar. 2024 was 1.03%.

Lesaka Technologies'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. Lesaka Technologies's annualized ROC % for the quarter that ended in Mar. 2024 was 1.64%. Lesaka Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 16.84%.


Lesaka Technologies Operating Income Historical Data

The historical data trend for Lesaka 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.

Lesaka Technologies Operating Income Chart

Lesaka Technologies Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1,757.38 -649.59 -749.53 -447.17 -155.73

Lesaka Technologies Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -33.84 7.65 9.07 42.35 26.86

Lesaka 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 Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was R86 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.


Lesaka Technologies  (JSE:LSK) Operating Income Explanation

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

Lesaka Technologies's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=107.432 * ( 1 - -29.47% )/( (8870.387 + 8138.536)/ 2 )
=139.0922104/8504.4615
=1.64 %

where

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))
=10818.055 - 1121.937 - ( 825.731 - max(0, 2395.75 - 3775.08+825.731))
=8870.387

Invested Capital(Q: Mar. 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))
=10394.354 - 1214.986 - ( 1040.832 - max(0, 2189.794 - 3501.544+1040.832))
=8138.536

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

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

Lesaka Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=107.208/( ( (633.31 + max(9.837, 0)) + (630.478 + max(-554.71, 0)) )/ 2 )
=107.208/( ( 643.147 + 630.478 )/ 2 )
=107.208/636.8125
=16.84 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(245.375 + 514.675 + 940.882) - (1121.937 + 0 + 569.158)
=9.837

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(244.456 + 410.675 + 634.85) - (1214.986 + 0 + 629.705)
=-554.71

When net working capital is negative, 0 is used.

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

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

Lesaka Technologies's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=26.858/2604.653
=1.03 %

* 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.


Lesaka Technologies Operating Income Related Terms

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Lesaka Technologies (JSE:LSK) Business Description

Traded in Other Exchanges
Address
Corner Jan Smuts Avenue and Bolton Road, President Place, 4th Floor, Rosebank, Johannesburg, GT, ZAF, 2196
Lesaka Technologies Inc provides payment solutions, transaction processing solutions, and financial technologies. The company operates two reportable segments: Merchant and Consumer. The company operates mainly within South Africa. The Merchant segment that derives majority revenue includes activities related to the provision of goods and services provided to corporate and other juristic entities. It earns fees from processing activities performed for its customers and revenue generated from the distribution of prepaid airtime. The Consumer segment includes activities related to the provision of financial services to customers, including bank accounts, loans, and insurance products. The firm charges monthly administration fees for all bank accounts.

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