GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » NEXON Co Ltd (OTCPK:NEXOY) » Definitions » Operating Income

NEXON Co (NEXON Co) Operating Income : $735 Mil (TTM As of Mar. 2024)


View and export this data going back to 2018. Start your Free Trial

What is NEXON Co Operating Income?

NEXON Co's Operating Income for the three months ended in Mar. 2024 was $195 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $735 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. NEXON Co's Operating Income for the three months ended in Mar. 2024 was $195 Mil. NEXON Co's Revenue for the three months ended in Mar. 2024 was $724 Mil. Therefore, NEXON Co's Operating Margin % for the quarter that ended in Mar. 2024 was 26.88%.

Warning Sign:

NEXON Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -5.3%.

NEXON Co's 5-Year average Growth Rate for Operating Margin % was -5.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. NEXON Co's annualized ROC % for the quarter that ended in Mar. 2024 was 9.55%. NEXON Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 57.91%.


NEXON Co Operating Income Historical Data

The historical data trend for NEXON Co'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.

NEXON Co Operating Income Chart

NEXON Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 866.40 1,073.75 804.17 768.60 935.85

NEXON Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 421.02 195.35 313.23 31.57 194.54

NEXON Co 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. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $735 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.


NEXON Co  (OTCPK:NEXOY) Operating Income Explanation

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

NEXON Co's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=778.168 * ( 1 - 33.72% )/( (5151.648 + 5646.728)/ 2 )
=515.7697504/5399.188
=9.55 %

where

Invested Capital(Q: Dec. 2023 )
=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))
=7626.695 - 237.975 - ( 2237.072 - max(0, 620.733 - 4788.851+2237.072))
=5151.648

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))
=7862.475 - 295.471 - ( 1920.276 - max(0, 649.525 - 4814.602+1920.276))
=5646.728

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

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

NEXON Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1461.956/( ( (367.089 + max(1970.176, 0)) + (422.745 + max(2288.974, 0)) )/ 2 )
=1461.956/( ( 2337.265 + 2711.719 )/ 2 )
=1461.956/2524.492
=57.91 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(263.041 + 0 + 2288.738) - (237.975 + 0 + 343.628)
=1970.176

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(392.775 + 0 + 2501.551) - (295.471 + 0 + 309.881)
=2288.974

When net working capital is negative, 0 is used.

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

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

NEXON Co's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=194.542/723.662
=26.88 %

* 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.


NEXON Co Operating Income Related Terms

Thank you for viewing the detailed overview of NEXON Co's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


NEXON Co (NEXON Co) Business Description

Traded in Other Exchanges
Address
1-4-5 Roppongi, Minato-ku, Tokyo, JPN, 106-0032
NEXON Co Ltd provides engaging, high quality, geographically unique games to international users through the development and service of PC online and mobile games. The company's major PC online titles include MapleStory and Dungeon&Fighter and their mobile games include HIT and DomiNations. The games are in approximately 200 countries including China, Korea, Japan, North America, and Europe. The PC segment is responsible for a majority of revenue, while the Mobile segment accounts for a smaller portion. Geographically, over half of the company's revenue is derived from China, roughly one quarter is derived from Korea, and the remainder is derived from Japan, North America, and Europe & Others.

NEXON Co (NEXON Co) Headlines

From GuruFocus

Tessa, Vindictus' 18th Hero, Updated by Nexon

By PRNewswire PRNewswire 07-14-2021

Character Update: Dan-Ah, Vindictus's 19th Hero

By PRNewswire PRNewswire 12-08-2021

MIDNIGHT WITCH CHARON DESCENDS FROM THE COSMOS IN VINDICTUS

By PRNewswire PRNewswire 01-19-2023

Bernard Horn Comments on Nexon

By Holly LaFon Holly LaFon 04-16-2018

Register Now: MapleStory 2 is Coming Soon!

By PRNewswire PRNewswire 04-16-2018

Bernard Horn Comments on NEXON Co.

By Holly LaFon Holly LaFon 10-18-2017

Bernard Horn's Polaris Global Value Fund 1st Quarter Commentary

By Holly LaFon Holly LaFon 04-16-2018

Bernard Horn Comments on Nexon

By Sydnee Gatewood Sydnee Gatewood 10-18-2019