Albemarle & Bond Holdings (LSE:ABM) Operating Income : £6.7 Mil (TTM As of Jun. 2013)

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What is Albemarle & Bond Holdings Operating Income?

Albemarle & Bond Holdings's Operating Income for the six months ended in Jun. 2013 was £6.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2013 was £6.7 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Albemarle & Bond Holdings's Operating Income for the six months ended in Jun. 2013 was £6.7 Mil. Albemarle & Bond Holdings's Revenue for the six months ended in Jun. 2013 was £107.1 Mil. Therefore, Albemarle & Bond Holdings's Operating Margin % for the quarter that ended in Jun. 2013 was 6.29%.

Albemarle & Bond Holdings'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. Albemarle & Bond Holdings's annualized ROC % for the quarter that ended in Jun. 2013 was 3.82%. Albemarle & Bond Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2013 was 7.41%.

Albemarle & Bond Holdings Operating Income Historical Data

The historical data trend for Albemarle & Bond Holdings'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.

Albemarle & Bond Holdings Operating Income Chart

Albemarle & Bond Holdings Annual Data

Trend

Jun04

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Operating Income

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16.19

20.66

21.66

22.59

6.73

Albemarle & Bond Holdings Semi-Annual Data
	Jun92	Jun93	Jun94	Jun95	Jun96	Jun97	Jun98	Jun01	Jun02	Jun03	Jun04	Jun05	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13
Operating Income	Get a 7-Day Free Trial															16.19	20.66	21.66	22.59	6.73

Albemarle & Bond Holdings 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 Jun. 2013 was £6.7 Mil.

Albemarle & Bond Holdings (LSE:ABM) Operating Income Explanation

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

Albemarle & Bond Holdings's annualized ROC % for the quarter that ended in Jun. 2013 is calculated as:

	ROC % (Q: Jun. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2012 )	+	Invested Capital (Q: Jun. 2013 ))	/ count )
=	6.73 * ( 1 - 28.46% )	/	( (124.585	+	127.477)	/ 2 )
=	4.814642	/	126.031
=	3.82 %

where

	Invested Capital		(Q: Jun. 2012 )
=	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	))
=	135.23	-	5.549	-	( 5.096	-	max(0, 10.1	-	90.861	+	5.096	))
=	124.585

	Invested Capital		(Q: Jun. 2013 )
=	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	))
=	140.629	-	3.037	-	( 10.115	-	max(0, 62.377	-	94.332	+	10.115	))
=	127.477

Note: The Operating Income data used here is one times the annual (Jun. 2013) data.

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

Albemarle & Bond Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2013 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2013 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2012		Q: Jun. 2013
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	6.73	/	( ( (16.507 + max(75.666, 0))	+	(14.249 + max(75.34, 0)) )	/	2 )
=	6.73	/	( ( 92.173	+	89.589 )	/	2 )
=	6.73	/	90.881
=	7.41 %

where Working Capital is:

	Working Capital		(Q: Jun. 2012 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(48.898	+	18.383	+	18.484)	-	(5.549	+	0	+	4.55)
=	75.666

	Working Capital		(Q: Jun. 2013 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(45.008	+	20.454	+	18.755)	-	(3.037	+	0	+	5.84)
=	75.34

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Jun. 2013) EBIT data.

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

Albemarle & Bond Holdings's Operating Margin % for the quarter that ended in Jun. 2013 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2013 )	/	Revenue (Q: Jun. 2013 )
	=	6.73	/	107.069
	=	6.29 %

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.

Albemarle & Bond Holdings Operating Income Related Terms

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Albemarle & Bond Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Albemarle & Bond Holdings PLC (LSE:ABM) » Definitions » Operating Income

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Address

Website

http://www.albemarlebondplc.com

Albemarle & Bond Holdings PLC was incorporated on January 17, 1986. The Company is a holding company engaged in pawnbroking, retail jewellery sales, gold purchasing, unsecured lending, including cheque cashing and other financial services. It has approximately 230 stores and 1,000 employees. Operating under the two brands, Albemarle Bond and Herbert Brown, it provides its customers with a range of services including jewellery retailing, pawnbroking loans, gold purchasing and a range of unsecured loan products. The pawn loan is secured against jewellery for a maximum of six months. The customer can redeem their jewellery by repaying the loan and interest owing at any time without incurring penalties for early redemption. The Company provides short-term loans through three products, PayDay Advances, Speedloans, and Cheque Cashing. PayDay Advances offer customers short-term unsecured loans to meet their cash flow requirements until wages are received. Speedloans provide customers with immediately available installment loans over a longer term of between six and 18 months and Cheque Cashing provides access to their cash for customers who have received cheques. The Company offers a range of new and second hand jewellery. Herbert Brown offers a range of new, second hand and antique jewellery.