MH (McGraw Hill) Operating Income: $316 Mil (TTM As of Mar. 2026)


MH McGraw Hill Inc MH
31 GF Score
Price $9.82
! 5 Warning Signs
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What is McGraw Hill Operating Income?

McGraw Hill MH -0.71% 31 Operating Income is $316 Mil as of Mar. 2026. GuruFocus rates MH with a GF Score™ of 31/100. The stock has 5 warning signs investors should review.

McGraw Hill's Operating Income for the three months ended in Mar. 2026 was $33 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $316 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. McGraw Hill's Operating Income for the three months ended in Mar. 2026 was $33 Mil. McGraw Hill's Revenue for the three months ended in Mar. 2026 was $464 Mil. Therefore, McGraw Hill's Operating Margin % for the quarter that ended in Mar. 2026 was 7.04%.

Good Sign:

McGraw Hill Inc operating margin is expanding. Margin expansion is usually a good sign.

McGraw Hill's 5-Year average Growth Rate for Operating Margin % was 14.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. McGraw Hill's annualized ROC % for the quarter that ended in Mar. 2026 was 2.24%. McGraw Hill's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 95.46%.

McGraw Hill  (NYSE:MH) Operating Income Explanation

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

McGraw Hill's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=130.552 * ( 1 - 4.69% )/( (5571.311 + 5542.953)/ 2 )
=124.4291112/5557.132
=2.24 %

where

Invested Capital(Q: Dec. 2025 )
=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))
=5644.047 - 285.9 - ( 514.392 - max(0, 1282.071 - 1068.907+514.392))
=5571.311

Invested Capital(Q: Mar. 2026 )
=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))
=5485.521 - 235.468 - ( 253.519 - max(0, 1266.549 - 973.649+253.519))
=5542.953

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

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

McGraw Hill's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=130.552/( ( (138.261 + max(-700.394, 0)) + (135.257 + max(-518.712, 0)) )/ 2 )
=130.552/( ( 138.261 + 135.257 )/ 2 )
=130.552/136.759
=95.46 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(242.331 + 169.667 + 142.517) - (285.9 + 813.153 + 155.856)
=-700.394

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(362.483 + 195.022 + 162.625) - (235.468 + 835.357 + 168.017)
=-518.712

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

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

McGraw Hill's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=32.638/463.722
=7.04 %

* 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.

McGraw Hill Operating Income Related Terms

McGraw Hill Operating Income Historical Data

* Premium members only.

The historical data trend for McGraw Hill'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.

McGraw Hill Operating Income Chart

McGraw Hill Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Income
Get a 7-Day Free Trial 55.77 123.83 204.80 306.81 315.78

McGraw Hill Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 27.77 96.23 156.53 30.39 32.64
MH
31GF Score
McGraw Hill Inc MH
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McGraw Hill 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. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $316 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $316 Mil mean?
McGraw Hill (MH) has a Operating Income of $316 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on McGraw Hill and its competitors.
Is McGraw Hill's Operating Income too high?
McGraw Hill's current Operating Income is $316 Mil. Overall, McGraw Hill has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does McGraw Hill's Operating Income compare to STRA and COUR?
McGraw Hill's Operating Income of $316 Mil can be compared against companies in the Education industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for an Education company?
A good Operating Income depends on the Education industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on McGraw Hill and its competitors. McGraw Hill's current Operating Income is $316 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McGraw Hill stock overvalued right now?
McGraw Hill (MH) has a current Operating Income of $316 Mil. The current Operating Income is $316 Mil. McGraw Hill's overall GF Score™ is 31/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For McGraw Hill (MH), the current Operating Income is $316 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

McGraw Hill Business Description

Address 8787 Orion Place, Columbus, OH, USA, 43240
McGraw Hill Inc is a provider of education solutions for K-12, higher education and professional learning markets. It is helping shape the education industry by providing access to effective learning experiences that improve outcomes and opportunities for all. It operates at the intersection of proprietary content, software and data, using artificial intelligence to deliver personalized learning experiences, driving positive outcomes throughout the entire learning lifecycle. The company has four reportable segments K-12, Higher Education, Global Professional, International. It generates majority of revenue from K-12 which provides end-to-end core, supplemental and intervention curricula to support the needs of U.S. K-12 schools. It generates majority of revenue from United States.
31GF Score

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Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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