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MEI (Methode Electronics) Operating Income : $-13 Mil (TTM As of Oct. 2024)


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What is Methode Electronics Operating Income?

Methode Electronics's Operating Income for the three months ended in Oct. 2024 was $9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2024 was $-13 Mil.

Warning Sign:

Methode Electronics Inc has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Methode Electronics's Operating Income for the three months ended in Oct. 2024 was $9 Mil. Methode Electronics's Revenue for the three months ended in Oct. 2024 was $293 Mil. Therefore, Methode Electronics's Operating Margin % for the quarter that ended in Oct. 2024 was 3.21%.

Methode Electronics'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. Methode Electronics's annualized ROC % for the quarter that ended in Oct. 2024 was -3.51%. Methode Electronics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2024 was 6.10%.


Methode Electronics Operating Income Historical Data

The historical data trend for Methode Electronics'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.

Methode Electronics Operating Income Chart

Methode Electronics Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 147.10 127.90 111.70 90.40 -6.10

Methode Electronics Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
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 5.20 -3.00 -12.10 -7.50 9.40

Methode Electronics 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 Oct. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-13 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.


Methode Electronics  (NYSE:MEI) Operating Income Explanation

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

Methode Electronics's annualized ROC % for the quarter that ended in Oct. 2024 is calculated as:

ROC % (Q: Oct. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2024 ) + Invested Capital (Q: Oct. 2024 ))/ count )
=37.6 * ( 1 - 200% )/( (1049.2 + 1094.8)/ 2 )
=-37.6/1072
=-3.51 %

where

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

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

Methode Electronics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Oct. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jul. 2024  Q: Oct. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=31.2/( ( (239.2 + max(242.7, 0)) + (244.4 + max(296.2, 0)) )/ 2 )
=31.2/( ( 481.9 + 540.6 )/ 2 )
=31.2/511.25
=6.10 %

where Working Capital is:

Working Capital(Q: Jul. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(248.6 + 219.9 + 27.9) - (217.4 + 0 + 36.3)
=242.7

Working Capital(Q: Oct. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(255.9 + 228.2 + 26.9) - (183.3 + 0 + 31.5)
=296.2

When net working capital is negative, 0 is used.

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

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

Methode Electronics's Operating Margin % for the quarter that ended in Oct. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Oct. 2024 )/Revenue (Q: Oct. 2024 )
=9.4/292.6
=3.21 %

* 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.


Methode Electronics Operating Income Related Terms

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Methode Electronics Business Description

Traded in Other Exchanges
Address
8750 West Bryn Mawr Avenue, Suite 1000, Chicago, IL, USA, 60631-3518
Methode Electronics Inc makes component and subsystem devices employing electrical, radio remote control, electronic, wireless, and sensing technologies. The firm is organized into various business segments: Automotive, Industrial, Interface, and Medical. The Automotive segment which generates maximum revenue, supplies electronic and electro-mechanical devices and related products to automobiles. The products manufactured in the automotive segment include overhead and center consoles, hidden and ergonomic switches, insert molded components, LED-based lighting, and sensors. Geographically, the company generates maximum revenue from North America and the rest from Europe, the Middle East & Africa (EMEA), and Asia.
Executives
Mary A Lindsey director 6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039
David P Blom director 200 OLD WILSON BRIDGE RD, COLUMBUS OH 43085
Donald W Duda officer: President
Walter J Aspatore director 255 E BROWN STREET, SUITE 120, BIRMINGHAM MI 48009
Lawrence B Skatoff director 200 SOUTH MICHIGAN AVE, CHICAGO IL 60604
Brian J Cadwallader director 5757 N GREEN BAY AVE, MILWAUKEE WI 53209
Darren Dawson director C/O METHODE ELECTRONICS, INC., 7401 WEST WILSON AVENUE, CHICAGO IL 60706
Joseph Elias Khoury officer: Vice President 7401 W. WILSON AVENUE, HARWOOD HEIGHTS IL 60706
Kerry A. Vyverberg officer: General Counsel 8750 W. BRYN MAWR AVE., SUITE 1000, CHICAGO IL 60631
Timothy Glandon officer: VP&GM NA Automotive 7401 W. WILSON AVENUE, CHICAGO IL 60706
Janie Goddard director C/O ACON - 1133 CONNECTICUT AVENUE, NW, SUITE 700, WASHINGTON DC 20036
Tsoumas Ronald L.g. officer: Controller & Treasurer 7401 W. WILSON AVE., CHICAGO IL 60706
Anil Shetty officer: VP Methode & Pres. Dabir Surf. 7401 WEST WILSON AVENUE, CHICAGO IL 60706
Kevin Michael Martin officer: Vice President, North America 8750 WEST BRYN MAWR AVENUE, SUITE 1000, CHICAGO IL 60631
Therese M Bobek director 685 SKYE LN, INVERNESS IL 60010

Methode Electronics Headlines

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