Great Portland Estates (LSE:GPE) Operating Income : £19.70 Mil (TTM As of Mar. 2024)

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What is Great Portland Estates Operating Income?

Great Portland Estates's Operating Income for the six months ended in Mar. 2024 was £9.40 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was £19.70 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Great Portland Estates's Operating Income for the six months ended in Mar. 2024 was £9.40 Mil. Great Portland Estates's Revenue for the six months ended in Mar. 2024 was £47.80 Mil. Therefore, Great Portland Estates's Operating Margin % for the quarter that ended in Mar. 2024 was 19.67%.

Warning Sign:

Great Portland Estates PLC operating margin has been in a 5-year decline. The average rate of decline per year is -14%.

Great Portland Estates's 5-Year average Growth Rate for Operating Margin % was -14.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Great Portland Estates's annualized ROC % for the quarter that ended in Mar. 2024 was 0.71%. Great Portland Estates's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -3,744.68%.

Great Portland Estates Operating Income Historical Data

The historical data trend for Great Portland Estates'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.

Great Portland Estates Operating Income Chart

Great Portland Estates Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Operating Income

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45.50

30.80

14.60

19.80

19.70

Great Portland Estates Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
Operating Income	Get a 7-Day Free Trial															5.60	10.60	9.20	10.30	9.40

Great Portland Estates 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 semi-annually data reported by the company within the most recent 12 months, which was £19.70 Mil.

Great Portland Estates (LSE:GPE) Operating Income Explanation

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

Great Portland Estates'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: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	18.8 * ( 1 - 0% )	/	( (2623.4	+	2644.8)	/ 2 )
=	18.8	/	2634.1
=	0.71 %

where

	Invested Capital		(Q: Sep. 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	))
=	2448.4	-	5.3	-	( 5.6	-	max(0, 238.2	-	57.9	+	5.6	))
=	2623.4

	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	))
=	2478	-	18.7	-	( 5.9	-	max(0, 251.5	-	66	+	5.9	))
=	2644.8

Note: The Operating Income data used here is two times the semi-annual (Mar. 2024) data.

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

Great Portland Estates'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: Sep. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-88	/	( ( (2.7 + max(-12.1, 0))	+	(2 + max(-28.8, 0)) )	/	2 )
=	-88	/	( ( 2.7	+	2 )	/	2 )
=	-88	/	2.35
=	-3,744.68 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(20.1	+	0	+	31.1)	-	(5.3	+	0	+	58)
=	-12.1

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(6.4	+	0	+	41.3)	-	(18.7	+	0	+	57.8)
=	-28.8

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Mar. 2024) EBIT data.

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

Great Portland Estates'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 )
	=	9.4	/	47.8
	=	19.67 %

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.

Great Portland Estates Operating Income Related Terms

Thank you for viewing the detailed overview of Great Portland Estates's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Great Portland Estates (LSE:GPE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Great Portland Estates PLC (LSE:GPE) » Definitions » Operating Income

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GPEl:UK G9KB:Germany

Address

33 Cavendish Square, London, GBR, W1G 0PW

Website

https://www.gpe.co.uk

Great Portland Estates PLC, or GPE, is a real estate investment trust involved in the ownership and development of commercial property in central London. GPE invests in and redevelops London real estate. The company generates revenue from these assets through long-term lease agreements. Income is also derived from the management of other development projects. The majority of the company's real estate portfolio is comprised of office space, while retail locations also make up a significant percentage. Almost half of GPE's properties are located in the North of Oxford Street area. London's West End is home to a substantial share as well. GPE's tenants are primarily divided between retail & leisure shops; technology, media, & telecom companies; and professional & business services firms.

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