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Williamson Tea Kenya (NAI:WTK) Operating Income : KES-184 Mil (TTM As of Sep. 2024)


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What is Williamson Tea Kenya Operating Income?

Williamson Tea Kenya's Operating Income for the six months ended in Sep. 2024 was KES-129 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was KES-184 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Williamson Tea Kenya's Operating Income for the six months ended in Sep. 2024 was KES-129 Mil. Williamson Tea Kenya's Revenue for the six months ended in Sep. 2024 was KES1,982 Mil. Therefore, Williamson Tea Kenya's Operating Margin % for the quarter that ended in Sep. 2024 was -6.51%.

Williamson Tea Kenya'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. Williamson Tea Kenya's annualized ROC % for the quarter that ended in Sep. 2024 was -2.47%. Williamson Tea Kenya's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was -4.68%.


Williamson Tea Kenya Operating Income Historical Data

The historical data trend for Williamson Tea Kenya'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.

Williamson Tea Kenya Operating Income Chart

Williamson Tea Kenya Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.73 2.98 425.01 543.43 377.85

Williamson Tea Kenya Semi-Annual Data
Mar11 Mar12 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 207.70 335.73 433.07 -55.22 -128.98

Williamson Tea Kenya 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 Sep. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was KES-184 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.


Williamson Tea Kenya  (NAI:WTK) Operating Income Explanation

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

Williamson Tea Kenya's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-257.96 * ( 1 - 27.38% )/( (7589.136 + 7548.851)/ 2 )
=-187.330552/7568.9935
=-2.47 %

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))
=9031.506 - 726.092 - ( 716.278 - max(0, 769.537 - 2491.795+716.278))
=7589.136

Invested Capital(Q: Sep. 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))
=8465.577 - 624.85 - ( 291.876 - max(0, 669.497 - 2110.584+291.876))
=7548.851

Note: The Operating Income data used here is two times the semi-annual (Sep. 2024) data.

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

Williamson Tea Kenya's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-257.96/( ( (4562.324 + max(878.486, 0)) + (4420.861 + max(1156.732, 0)) )/ 2 )
=-257.96/( ( 5440.81 + 5577.593 )/ 2 )
=-257.96/5509.2015
=-4.68 %

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)
=(297.301 + 1063.087 + 244.19) - (726.092 + 0 + 0)
=878.486

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(696.769 + 977.934 + 106.879) - (624.85 + 0 + -1.1368683772162E-13)
=1156.732

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2024) EBIT data.

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

Williamson Tea Kenya's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2024 )/Revenue (Q: Sep. 2024 )
=-128.98/1982.355
=-6.51 %

* 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.


Williamson Tea Kenya Operating Income Related Terms

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Williamson Tea Kenya Business Description

Traded in Other Exchanges
N/A
Address
Karen Office Park, Langata Road, P.O. Box 42281, 2nd Floor, The Acacia Block, Nairobi, KEN, 00100
Williamson Tea Kenya PLC is engaged in the farm products business sector. The business of the company operates in segments that include Cultivation, Manufacturing, and Sale of Tea, Investment in Property, and Sale and Servicing of Generators. Its Tea segment generates maximum revenue for the company. The product line consists of matcha tea, mini tea candles, elephant tea candles, loose tea, and tea bags. Its products are also exported and these exports generate maximum revenue for the company.

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