KLMR (KLM Royal Dutch Airlines) Operating Income: $1,073.95 Mil (TTM As of Dec. 2018)

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What is KLM Royal Dutch Airlines Operating Income?

KLM Royal Dutch Airlines KLMR Operating Income is $1,073.95 Mil as of Dec. 2018.

KLM Royal Dutch Airlines's Operating Income for the six months ended in Dec. 2018 was $1,073.95 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2018 was $1,073.95 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. KLM Royal Dutch Airlines's Operating Income for the six months ended in Dec. 2018 was $1,073.95 Mil. KLM Royal Dutch Airlines's Revenue for the six months ended in Dec. 2018 was $12,463.03 Mil. Therefore, KLM Royal Dutch Airlines's Operating Margin % for the quarter that ended in Dec. 2018 was 8.62%.

KLM Royal Dutch Airlines'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. KLM Royal Dutch Airlines's annualized ROC % for the quarter that ended in Dec. 2018 was 6.38%. KLM Royal Dutch Airlines's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2018 was 14.25%.


KLM Royal Dutch Airlines  (OTCPK:KLMR) Operating Income Explanation

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

KLM Royal Dutch Airlines's annualized ROC % for the quarter that ended in Dec. 2018 is calculated as:

ROC % (Q: Dec. 2018 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2017 ) + Invested Capital (Q: Dec. 2018 ))/ count )
=1073.948 * ( 1 - 26.3% )/( (12392.899 + 12435.723)/ 2 )
=791.499676/12414.311
=6.38 %

where

Invested Capital(Q: Dec. 2017 )
=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))
=13213.018 - 2582.249 - ( 1368.047 - max(0, 5147.929 - 3385.799+1368.047))
=12392.899

Invested Capital(Q: Dec. 2018 )
=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))
=12639.363 - 2542.662 - ( 1002.275 - max(0, 5292.378 - 2953.356+1002.275))
=12435.723

Note: The Operating Income data used here is one times the annual (Dec. 2018) data.

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

KLM Royal Dutch Airlines's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2018 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2018 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2017  Q: Dec. 2018
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1100.114/( ( (7718.343 + max(-2803.55, 0)) + (7716.724 + max(-3084.186, 0)) )/ 2 )
=1100.114/( ( 7718.343 + 7716.724 )/ 2 )
=1100.114/7717.5335
=14.25 %

where Working Capital is:

Working Capital(Q: Dec. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(734.911 + 209.467 + 513.61) - (2582.249 + 1382.249 + 297.04)
=-2803.55

Working Capital(Q: Dec. 2018 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(676.906 + 267.349 + 436.861) - (2542.662 + 1480.091 + 442.549)
=-3084.186

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Dec. 2018) EBIT data.

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

KLM Royal Dutch Airlines's Operating Margin % for the quarter that ended in Dec. 2018 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2018 )/Revenue (Q: Dec. 2018 )
=1073.948/12463.026
=8.62 %

* 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.


KLM Royal Dutch Airlines Operating Income Related Terms


KLM Royal Dutch Airlines Operating Income Historical Data

* Premium members only.

The historical data trend for KLM Royal Dutch Airlines'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.

KLM Royal Dutch Airlines Operating Income Chart

KLM Royal Dutch Airlines Annual Data
Trend Mar04 Mar05 Mar06 Mar07 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 88.78 23.97 505.27 1,049.70 1,073.95

KLM Royal Dutch Airlines Semi-Annual Data
Mar94 Mar95 Mar96 Mar97 Mar98 Mar99 Mar00 Mar01 Mar02 Mar03 Mar04 Mar05 Mar06 Mar07 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
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 88.78 23.97 505.27 1,049.70 1,073.95

KLM Royal Dutch Airlines 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.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Dec. 2018 was $1,073.95 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 $1,073.95 Mil mean?
KLM Royal Dutch Airlines (KLMR) has a Operating Income of $1,073.95 Mil as of Dec. 2018. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on KLM Royal Dutch Airlines and its competitors.
Is KLM Royal Dutch Airlines' Operating Income too high?
KLM Royal Dutch Airlines' current Operating Income is $1,073.95 Mil.
How does KLM Royal Dutch Airlines' Operating Income compare to ?
KLM Royal Dutch Airlines' Operating Income of $1,073.95 Mil can be compared against companies in the Transportation 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 Transportation company?
A good Operating Income depends on the Transportation 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 KLM Royal Dutch Airlines and its competitors. KLM Royal Dutch Airlines's current Operating Income is $1,073.95 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KLM Royal Dutch Airlines stock overvalued right now?
KLM Royal Dutch Airlines (KLMR) has a current Operating Income of $1,073.95 Mil. The current Operating Income is $1,073.95 Mil. 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 KLM Royal Dutch Airlines (KLMR), the current Operating Income is $1,073.95 Mil as of Dec. 2018. 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.

KLM Royal Dutch Airlines Business Description

Comparable Companies
Address Amsterdamseweg 55, Amstelveen, NH, NLD, 1182 GP
KLM Royal Dutch Airlines is engaged in network activities, which include air transport of passengers and cargo activities, aircraft maintenance, leisure, and other activities linked to air transport. Its segments are: Network, which generates maximum revenue and includes transportation of passengers on scheduled flights, ancillary passenger revenues, SkyTeam alliance partnership arrangements, block-seat sales, transportation of freight, and sale of cargo capacity to third parties; Maintenance, which provides engine services, component services, and airframe maintenance to airlines and clients internationally; Leisure, which covers charter flights and low-cost scheduled flights operated by transavia.com; and Other segment. It generates maximum revenue from Europe and North Africa.