Magson Retail and Distribution (NSE:MAGSON) Operating Income : ₹37.3 Mil (TTM As of Sep. 2023)

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What is Magson Retail and Distribution Operating Income?

Magson Retail and Distribution's Operating Income for the six months ended in Sep. 2023 was ₹10.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was ₹37.3 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Magson Retail and Distribution's Operating Income for the six months ended in Sep. 2023 was ₹10.8 Mil. Magson Retail and Distribution's Revenue for the six months ended in Sep. 2023 was ₹345.9 Mil. Therefore, Magson Retail and Distribution's Operating Margin % for the quarter that ended in Sep. 2023 was 3.13%.

Magson Retail and Distribution'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. Magson Retail and Distribution's annualized ROC % for the quarter that ended in Sep. 2023 was 9.84%. Magson Retail and Distribution's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 29.34%.

Magson Retail and Distribution Operating Income Historical Data

The historical data trend for Magson Retail and Distribution'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.

Magson Retail and Distribution Operating Income Chart

Magson Retail and Distribution Annual Data

Trend

Mar21

Mar22

Mar23

Operating Income

30.08

31.37

37.84

Magson Retail and Distribution Semi-Annual Data
	Mar21	Mar22	Sep22	Mar23	Sep23
Operating Income	-	-	11.39	26.45	10.84

Magson Retail and Distribution 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. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was ₹37.3 Mil.

Magson Retail and Distribution (NSE:MAGSON) Operating Income Explanation

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

Magson Retail and Distribution's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	21.684 * ( 1 - 22.15% )	/	( (146.553	+	196.507)	/ 2 )
=	16.880994	/	171.53
=	9.84 %

where

	Invested Capital		(Q: Mar. 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	))
=	199.987	-	44.907	-	( 8.527	-	max(0, 90.7	-	142.943	+	8.527	))
=	146.553

	Invested Capital		(Q: Sep. 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	))
=	324.125	-	32.542	-	( 95.076	-	max(0, 90.379	-	266.758	+	95.076	))
=	196.507

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

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

Magson Retail and Distribution's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	30.83	/	( ( (47.52 + max(59.981, 0))	+	(45.314 + max(57.377, 0)) )	/	2 )
=	30.83	/	( ( 107.501	+	102.691 )	/	2 )
=	30.83	/	105.096
=	29.34 %

where Working Capital is:

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(14.07	+	96.646	+	23.7)	-	(44.907	+	0	+	29.528)
=	59.981

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(44.116	+	93.631	+	-5.6843418860808E-14)	-	(32.542	+	0	+	47.828)
=	57.377

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

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

Magson Retail and Distribution's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	10.842	/	345.907
	=	3.13 %

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.

Magson Retail and Distribution Operating Income Related Terms

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

Magson Retail and Distribution (NSE:MAGSON) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Magson Retail and Distribution Ltd (NSE:MAGSON) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

Near Judges Bungalows Cross Roads, 204-B, Primate Complex, Opposite Mother Milk Palace, Bodakdev, Ahmedabad, GJ, IND, 380015

Website

https://www.magson.in

Magson Retail and Distribution Ltd is engaged in the retail and Distribution business of gourmet, frozen food, and specialty foods. The company operates retail stores through and own stores, jointly owned stores, and a franchise model under its brand name 'MagSon'. In addition, the company has a separate chocolate store that is operated under the brand name 'My Chocolate World'.

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