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WH Group (STU:0WH) Operating Income : €1,564 Mil (TTM As of Jun. 2024)


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What is WH Group Operating Income?

WH Group's Operating Income for the three months ended in Jun. 2024 was €0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was €1,564 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. WH Group's Operating Income for the three months ended in Jun. 2024 was €0 Mil. WH Group's Revenue for the three months ended in Jun. 2024 was €0 Mil. Therefore, WH Group's Operating Margin % for the quarter that ended in Jun. 2024 was %.

Warning Sign:

WH Group Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.7%.

WH Group's 5-Year average Growth Rate for Operating Margin % was -1.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. WH Group's annualized ROC % for the quarter that ended in Jun. 2024 was 0.00%. WH Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 0.00%.


WH Group Operating Income Historical Data

The historical data trend for WH Group'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.

WH Group Operating Income Chart

WH Group 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 2,178.90 1,900.46 2,003.64 2,095.68 2,098.10

WH Group Quarterly Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23 Jun24 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 Premium Member Only - -326.08 1,138.00 - 426.17

WH Group 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 Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,564 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.


WH Group  (STU:0WH) Operating Income Explanation

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

WH Group's annualized ROC % for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=0 * ( 1 - % )/( (14823.305 + 15343.364)/ 2 )
=0/15083.3345
=0.00 %

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))
=17587.143 - 1194.851 - ( 1568.987 - max(0, 4271.386 - 6706.938+1568.987))
=14823.305

Invested Capital(Q: Jun. 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))
=17575.751 - 934.574 - ( 1297.813 - max(0, 3750.373 - 6561.527+1297.813))
=15343.364

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

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

WH Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Jun. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=0/( ( (6684.013 + max(1508.465, 0)) + (6660.93 + max(2243.535, 0)) )/ 2 )
=0/( ( 8192.478 + 8904.465 )/ 2 )
=0/8548.4715
=0.00 %

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)
=(798.707 + 3800.965 + 75.194) - (1194.851 + 0 + 1971.55)
=1508.465

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(828.668 + 3844.202 + 85.468) - (934.574 + 0 + 1580.229)
=2243.535

When net working capital is negative, 0 is used.

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

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

WH Group's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2024 )/Revenue (Q: Jun. 2024 )
=0/0
= %

* 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.


WH Group Operating Income Related Terms

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WH Group Business Description

Traded in Other Exchanges
Address
1 Austin Road West, Unit 7602B-7604A, Level 76, International Commerce Centre, Kowloon, Hong Kong, HKG
WH Group is a holding company and the world's largest vertically integrated producer of pork and related packaged meat products. Its revenue is mainly derived from activities undertaken by its China and US operations, which are respectively via 70.3%-owned Henan Shuanghui Investment & Development Co., or Shuanghui, and wholly owned Smithfield Foods Inc. In the US, its key packaged meats brands, in which it has an 8% market share, include Nathan's hot dogs, Armour, John Morrell, and Curly's, while in China, products are mainly under the Shuanghui brand, where it also has a 32% market share. We expect the company's operating profit to be split almost equally between the US and China going forward with a small contribution from Europe.

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