Polestar Automotive Holding UK (Polestar Automotive Holding UK) Operating Income : $-564 Mil (TTM As of Sep. 2023)

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What is Polestar Automotive Holding UK Operating Income?

Polestar Automotive Holding UK's Operating Income for the three months ended in Sep. 2023 was $-261 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $-564 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Polestar Automotive Holding UK's Operating Income for the three months ended in Sep. 2023 was $-261 Mil. Polestar Automotive Holding UK's Revenue for the three months ended in Sep. 2023 was $613 Mil. Therefore, Polestar Automotive Holding UK's Operating Margin % for the quarter that ended in Sep. 2023 was -42.60%.

Polestar Automotive Holding UK'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. Polestar Automotive Holding UK's annualized ROC % for the quarter that ended in Sep. 2023 was -20.88%. Polestar Automotive Holding UK's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was -100.57%.

Polestar Automotive Holding UK Operating Income Historical Data

The historical data trend for Polestar Automotive Holding UK'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.

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Polestar Automotive Holding UK Operating Income Chart

Polestar Automotive Holding UK Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Operating Income

-191.91

-442.97

-945.54

-910.37

Polestar Automotive Holding UK Quarterly Data
	Dec19	Dec20	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Operating Income	Get a 7-Day Free Trial							-196.40	171.21	-199.40	-274.35	-261.21

Polestar Automotive Holding UK 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 quarterly data reported by the company within the most recent 12 months, which was $-564 Mil.

Polestar Automotive Holding UK (NAS:PSNY) Operating Income Explanation

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

Polestar Automotive Holding UK'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: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-1044.82 * ( 1 - -1.69% )	/	( (4835.081	+	5341.94)	/ 2 )
=	-1062.477458	/	5088.5105
=	-20.88 %

where

	Invested Capital		(Q: Jun. 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	))
=	4255.245	-	1085.44	-	( 1057.412	-	max(0, 4072.222	-	2406.946	+	1057.412	))
=	4835.081

	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	))
=	4386.464	-	1066.265	-	( 951.088	-	max(0, 4501.037	-	2479.296	+	951.088	))
=	5341.94

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

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

Polestar Automotive Holding UK'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: Jun. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-357.604	/	( ( (357.578 + max(-314.213, 0))	+	(353.601 + max(-161.158, 0)) )	/	2 )
=	-357.604	/	( ( 357.578	+	353.601 )	/	2 )
=	-357.604	/	355.5895
=	-100.57 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(286.186	+	867.499	+	173.95)	-	(1085.44	+	104.489	+	451.919)
=	-314.213

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(257.483	+	1005.607	+	181.785)	-	(1066.265	+	119.711	+	420.057)
=	-161.158

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2023) EBIT data.

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

Polestar Automotive Holding UK'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 )
	=	-261.205	/	613.182
	=	-42.60 %

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.

Polestar Automotive Holding UK Operating Income Related Terms

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Polestar Automotive Holding UK (Polestar Automotive Holding UK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Polestar Automotive Holding UK PLC (NAS:PSNY) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

PSNYW:USA A4N1:Germany

Address

Assar Gabrielssons Vag 9, Gothenburg, SWE, 405 31

Website

https://www.polestar.com

Polestar Automotive Holding UK PLC operates as an electric vehicle manufacturer. It engages in designing products that are engineered to excite consumers and drive change. Polestar defines market-leading standards in design, technology, and sustainability. Polestar was established as a premium electric car brand by Volvo Cars and Geely Holdings. Polestar has produced two electric performance cars namely Polestar 1 and Polestar 2. Geographically, it derives a majority of revenue from USA.