Tongaat Hulett (JSE:TON) Operating Income: R1,653 Mil (TTM As of Sep. 2021)

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JSE:TON Tongaat Hulett Ltd JSE:TON
11 GF Score
Price R4.04
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What is Tongaat Hulett Operating Income?

Tongaat Hulett JSE:TON 11 Operating Income is R1,653 Mil as of Sep. 2021. GuruFocus rates JSE:TON with a GF Score™ of 11/100.

Tongaat Hulett's Operating Income for the six months ended in Sep. 2021 was R1,350 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2021 was R1,653 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Tongaat Hulett's Operating Income for the six months ended in Sep. 2021 was R1,350 Mil. Tongaat Hulett's Revenue for the six months ended in Sep. 2021 was R8,418 Mil. Therefore, Tongaat Hulett's Operating Margin % for the quarter that ended in Sep. 2021 was 16.04%.

Tongaat Hulett'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. Tongaat Hulett's annualized ROC % for the quarter that ended in Sep. 2021 was 0.64%. Tongaat Hulett's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2021 was 28.76%.


Tongaat Hulett  (JSE:TON) Operating Income Explanation

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

Tongaat Hulett's annualized ROC % for the quarter that ended in Sep. 2021 is calculated as:

ROC % (Q: Sep. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2021 ) + Invested Capital (Q: Sep. 2021 ))/ count )
=2700 * ( 1 - 96.6% )/( (14889 + 13945)/ 2 )
=91.8/14417
=0.64 %

where

Note: The Operating Income data used here is two times the semi-annual (Sep. 2021) data.

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

Tongaat Hulett's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2021 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2021  Q: Sep. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2610/( ( (5190 + max(3392, 0)) + (5730 + max(3837, 0)) )/ 2 )
=2610/( ( 8582 + 9567 )/ 2 )
=2610/9074.5
=28.76 %

where Working Capital is:

Working Capital(Q: Mar. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(599 + 4900 + 1226) - (1492 + 0 + 1841)
=3392

Working Capital(Q: Sep. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1891 + 7605 + 17) - (5006 + 0 + 670)
=3837

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2021) EBIT data.

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

Tongaat Hulett's Operating Margin % for the quarter that ended in Sep. 2021 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2021 )/Revenue (Q: Sep. 2021 )
=1350/8418
=16.04 %

* 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.


Tongaat Hulett Operating Income Related Terms


Tongaat Hulett Operating Income Historical Data

* Premium members only.

The historical data trend for Tongaat Hulett'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.

Tongaat Hulett Operating Income Chart

Tongaat Hulett Annual Data
Trend Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2,321.00 459.00 486.00 3,324.00 2,022.00

Tongaat Hulett Semi-Annual Data
Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21
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 978.00 2,346.00 1,719.00 303.00 1,350.00
JSE:TON
11GF Score
Tongaat Hulett Ltd JSE:TON
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Tongaat Hulett 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 Sep. 2021 adds up the semi-annually data reported by the company within the most recent 12 months, which was R1,653 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of R1,653 Mil mean?
Tongaat Hulett (JSE:TON) has a Operating Income of R1,653 Mil as of Sep. 2021. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Tongaat Hulett and its competitors.
Is Tongaat Hulett's Operating Income too high?
Tongaat Hulett's current Operating Income is R1,653 Mil. Overall, Tongaat Hulett has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Tongaat Hulett's Operating Income compare to MDLZ and HSY?
Tongaat Hulett's Operating Income of R1,653 Mil can be compared against companies in the Consumer Packaged Goods industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Consumer Packaged Goods company?
A good Operating Income depends on the Consumer Packaged Goods industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Tongaat Hulett and its competitors. Tongaat Hulett's current Operating Income is R1,653 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongaat Hulett stock overvalued right now?
Tongaat Hulett (JSE:TON) has a current Operating Income of R1,653 Mil. The current Operating Income is R1,653 Mil. Tongaat Hulett's overall GF Score™ is 11/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Tongaat Hulett (JSE:TON), the current Operating Income is R1,653 Mil as of Sep. 2021. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Tongaat Hulett Business Description

Address Amanzimnyama Hill Road, P O Box 3, Tongaat, NL, ZAF, 4400
Tongaat Hulett Ltd produces sugar and glucose in Africa. It procures its raw materials both from land it owns and from private farmers. Tongaat sells its products to customers in the foodservice industry and to consumers as branded products. Raw sugar sales make up most of the company's revenue. Its biggest markets are South Africa, Zimbabwe, and Mozambique. The company also earns revenue by converting and developing land that it owns and has used for agricultural purposes. Additionally, the by-products from its manufacturing processes create renewable energy, which the company uses to supply electricity to the grid in some instances.
11GF Score

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Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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