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Proact IT Group AB (LTS:0GT3) Operating Income : kr295 Mil (TTM As of Dec. 2024)


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What is Proact IT Group AB Operating Income?

Proact IT Group AB's Operating Income for the three months ended in Dec. 2024 was kr67 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was kr295 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Proact IT Group AB's Operating Income for the three months ended in Dec. 2024 was kr67 Mil. Proact IT Group AB's Revenue for the three months ended in Dec. 2024 was kr1,269 Mil. Therefore, Proact IT Group AB's Operating Margin % for the quarter that ended in Dec. 2024 was 5.24%.

Good Sign:

Proact IT Group AB operating margin is expanding. Margin expansion is usually a good sign.

Proact IT Group AB'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. Proact IT Group AB's annualized ROC % for the quarter that ended in Dec. 2024 was 5.81%. Proact IT Group AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 83.48%.


Proact IT Group AB Operating Income Historical Data

The historical data trend for Proact IT Group AB'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.

Proact IT Group AB Operating Income Chart

Proact IT Group AB Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 182.07 166.23 260.60 229.75 295.54

Proact IT Group AB Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 77.30 80.80 82.70 65.40 66.50

Proact IT Group AB 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 Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was kr295 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.


Proact IT Group AB  (LTS:0GT3) Operating Income Explanation

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

Proact IT Group AB's annualized ROC % for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=266 * ( 1 - 21.04% )/( (3869.2 + 3366.98)/ 2 )
=210.0336/3618.09
=5.81 %

where

Invested Capital(Q: Dec. 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))
=4475.656 - 656.86 - ( 813.518 - max(0, 1916.249 - 2368.065+813.518))
=3366.98

Note: The Operating Income data used here is four times the quarterly (Dec. 2024) data.

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

Proact IT Group AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2024  Q: Dec. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=266/( ( (318.1 + max(-194.1, 0)) + (319.169 + max(-388.362, 0)) )/ 2 )
=266/( ( 318.1 + 319.169 )/ 2 )
=266/318.6345
=83.48 %

where Working Capital is:

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1466.1 + 19.3 + 0) - (0 + 0 + 1679.5)
=-194.1

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(756.38 + 20.844 + 649.54) - (656.86 + 0 + 1158.266)
=-388.362

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

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

Proact IT Group AB's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2024 )/Revenue (Q: Dec. 2024 )
=66.5/1268.5
=5.24 %

* 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.


Proact IT Group AB Operating Income Related Terms

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Proact IT Group AB Business Description

Traded in Other Exchanges
Address
Frsoundaviks Alle 1, Solna, Stockholm, SWE, 169 04
Proact IT Group AB is a European-based independent datacentre and cloud service provider. The company's solution covers all aspects of data storage, virtualization, networking, and security. Its operating segments are System sales, Service operations, and Other revenue. The company-managed cloud services include service management, software as a service, proactive hybrid cloud, storage as a service, flexpod as a service, and disaster recovery services. It also offers professional services such as delivering transformation, project management and delivery, cloud adoption, and others. The majority of the company's revenue comes from the Nordics and Baltics region.

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