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Victorian Plumbing Group (LSE:VIC) Operating Income : £19.5 Mil (TTM As of Mar. 2024)


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What is Victorian Plumbing Group Operating Income?

Victorian Plumbing Group's Operating Income for the six months ended in Mar. 2024 was £9.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was £19.5 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Victorian Plumbing Group's Operating Income for the six months ended in Mar. 2024 was £9.3 Mil. Victorian Plumbing Group's Revenue for the six months ended in Mar. 2024 was £144.6 Mil. Therefore, Victorian Plumbing Group's Operating Margin % for the quarter that ended in Mar. 2024 was 6.43%.

Good Sign:

Victorian Plumbing Group PLC operating margin is expanding. Margin expansion is usually a good sign.

Victorian Plumbing Group's 5-Year average Growth Rate for Operating Margin % was 10.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Victorian Plumbing Group's annualized ROC % for the quarter that ended in Mar. 2024 was 25.84%. Victorian Plumbing Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 40.54%.


Victorian Plumbing Group Operating Income Historical Data

The historical data trend for Victorian Plumbing Group'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.

Victorian Plumbing Group Operating Income Chart

Victorian Plumbing Group Annual Data
Trend Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Operating Income
Get a 7-Day Free Trial 9.80 23.90 20.10 12.10 16.10

Victorian Plumbing Group Semi-Annual Data
Sep18 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 2.70 9.40 5.90 10.20 9.30

Victorian Plumbing Group 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 £19.5 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.


Victorian Plumbing Group  (LSE:VIC) Operating Income Explanation

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

Victorian Plumbing Group'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 )
=18.6 * ( 1 - 23.73% )/( (24.7 + 85.1)/ 2 )
=14.18622/54.9
=25.84 %

where

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:

Victorian Plumbing Group'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 )
=15/( ( (9.2 + max(-7.3, 0)) + (64.8 + max(-6.1, 0)) )/ 2 )
=15/( ( 9.2 + 64.8 )/ 2 )
=15/37
=40.54 %

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)
=(2.2 + 34.2 + 1.7) - (35.3 + 0 + 10.1)
=-7.3

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4.4 + 33.2 + 2.2) - (33.4 + 0 + 12.5)
=-6.1

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 %:

Victorian Plumbing Group'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 )
=9.3/144.6
=6.43 %

* 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.


Victorian Plumbing Group Operating Income Related Terms

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Victorian Plumbing Group Business Description

Traded in Other Exchanges
N/A
Address
1 Sustainability Way, Farington Moss, Leyland, GBR, PR26 6TB
Victorian Plumbing Group PLC is an online retailer of bathroom products and accessories, offering a one-stop-shop solution for the entire bathroom. It offers a wide range of over 24,000 products to business to customer and trade customers, with more than 125 brands across a wide spectrum of price points and it also design and develops exclusive new products in-house.

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