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Berry Global Group (MEX:BERY) Operating Income : MXN19,656 Mil (TTM As of Jun. 2024)


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What is Berry Global Group Operating Income?

Berry Global Group's Operating Income for the three months ended in Jun. 2024 was MXN5,991 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was MXN19,656 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Berry Global Group's Operating Income for the three months ended in Jun. 2024 was MXN5,991 Mil. Berry Global Group's Revenue for the three months ended in Jun. 2024 was MXN57,910 Mil. Therefore, Berry Global Group's Operating Margin % for the quarter that ended in Jun. 2024 was 10.34%.

Warning Sign:

Berry Global Group Inc operating margin has been in a 5-year decline. The average rate of decline per year is -2.2%.

Berry Global Group's 5-Year average Growth Rate for Operating Margin % was -2.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Berry Global Group's annualized ROC % for the quarter that ended in Jun. 2024 was 8.08%. Berry Global Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 19.86%.


Berry Global Group Operating Income Historical Data

The historical data trend for Berry Global 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.

Berry Global Group Operating Income Chart

Berry Global Group Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16,622.76 27,790.48 27,614.77 25,445.48 20,571.72

Berry Global Group Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 5,211.75 5,730.82 3,038.39 4,895.90 5,990.67

Berry Global 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 Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN19,656 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.


Berry Global Group  (MEX:BERY) Operating Income Explanation

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

Berry Global Group's annualized ROC % for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=23962.696 * ( 1 - 16.45% )/( (234919.989 + 260823.307)/ 2 )
=20020.832508/247871.648
=8.08 %

where

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))
=265224.751 - 22106.212 - ( 8198.55 - max(0, 38851.833 - 67447.18+8198.55))
=234919.989

Invested Capital(Q: Jun. 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))
=292901.807 - 22753.568 - ( 9324.932 - max(0, 41549.994 - 75771.946+9324.932))
=260823.307

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

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

Berry Global Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2024  Q: Jun. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=22570.368/( ( (86350.315 + max(20795.107, 0)) + (94843.173 + max(25318.382, 0)) )/ 2 )
=22570.368/( ( 107145.422 + 120161.555 )/ 2 )
=22570.368/113653.4885
=19.86 %

where Working Capital is:

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(26388.045 + 28114.056 + 4746.529) - (22106.212 + 0 + 16347.311)
=20795.107

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(29861.768 + 30759.453 + 5825.793) - (22753.568 + 0 + 18375.064)
=25318.382

When net working capital is negative, 0 is used.

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

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

Berry Global Group's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2024 )/Revenue (Q: Jun. 2024 )
=5990.674/57909.846
=10.34 %

* 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.


Berry Global Group Operating Income Related Terms

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Berry Global Group Business Description

Traded in Other Exchanges
Address
101 Oakley Street, Evansville, IN, USA, 47710
Berry global Group Inc is a leading global supplier of plastic packaging products mainly sold to consumer-oriented end markets. The four business segments are consumer packaging international, consumer packaging North America, engineered materials, and health, hygiene, and specialties. The company primarily uses plastic resin as its raw material, purchased from a variety of suppliers. The majority of revenue comes from consumer packaging international due to the acquisition of RPC, which expanded the geographical areas in which the company operates. The consumer packaging segment consists of closures and dispensing systems, pharmaceutical devices and packaging, bottles and canisters, polythene films, recycling, containers, and technical components.