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

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What is Tongaat Hulett Operating Income?

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 Operating Income Historical Data

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.

* Premium members only.

Tongaat Hulett Operating Income Chart

Tongaat Hulett Annual Data

Trend

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Operating Income

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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															978.00	2,346.00	1,719.00	303.00	1,350.00

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.

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

	Invested Capital		(Q: Mar. 2021 )
=	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	))
=	13276	-	1492	-	( 452	-	max(0, 10498	-	7393	+	452	))
=	14889

	Invested Capital		(Q: Sep. 2021 )
=	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	))
=	16535	-	5006	-	( 599	-	max(0, 12528	-	10112	+	599	))
=	13945

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 %

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

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Tongaat Hulett (JSE:TON) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Tongaat Hulett Ltd (JSE:TON) » Definitions » Operating Income

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Address

Amanzimnyama Hill Road, P O Box 3, Tongaat, NL, ZAF, 4400

Website

https://www.tongaat.com

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.

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