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Ganfeng Lithium Group Co (STU:39EA) Operating Income : €60 Mil (TTM As of Mar. 2024)


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What is Ganfeng Lithium Group Co Operating Income?

Ganfeng Lithium Group Co's Operating Income for the three months ended in Mar. 2024 was €-23 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was €60 Mil.

Warning Sign:

Ganfeng Lithium Group Co Ltd has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ganfeng Lithium Group Co's Operating Income for the three months ended in Mar. 2024 was €-23 Mil. Ganfeng Lithium Group Co's Revenue for the three months ended in Mar. 2024 was €646 Mil. Therefore, Ganfeng Lithium Group Co's Operating Margin % for the quarter that ended in Mar. 2024 was -3.61%.

Warning Sign:

Ganfeng Lithium Group Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.9%.

Ganfeng Lithium Group Co's 5-Year average Growth Rate for Operating Margin % was -3.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Ganfeng Lithium Group Co's annualized ROC % for the quarter that ended in Mar. 2024 was -1.13%. Ganfeng Lithium Group Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -3.51%.


Ganfeng Lithium Group Co Operating Income Historical Data

The historical data trend for Ganfeng Lithium Group 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.

Ganfeng Lithium Group Co Operating Income Chart

Ganfeng Lithium Group 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 111.72 111.26 493.26 2,490.17 464.62

Ganfeng Lithium Group 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 403.06 72.24 22.80 -12.07 -23.34

Ganfeng Lithium Group 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 €60 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.


Ganfeng Lithium Group Co  (STU:39EA) Operating Income Explanation

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

Ganfeng Lithium Group 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 )
=-93.356 * ( 1 - -19.18% )/( (9431.413 + 10256.736)/ 2 )
=-111.2616808/9844.0745
=-1.13 %

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))
=11776.557 - 1328.883 - ( 1229.276 - max(0, 2603.398 - 3619.659+1229.276))
=9431.413

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))
=12208.338 - 1287.519 - ( 1169.118 - max(0, 2614.978 - 3279.061+1169.118))
=10256.736

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

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

Ganfeng Lithium Group 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 )
=-134.932/( ( (3032.857 + max(781.011, 0)) + (3353.796 + max(522.101, 0)) )/ 2 )
=-134.932/( ( 3813.868 + 3875.897 )/ 2 )
=-134.932/3844.8825
=-3.51 %

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)
=(635.491 + 1061.321 + 454.051) - (1328.883 + 0 + 40.969)
=781.011

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(580.644 + 889.966 + 385.75) - (1287.519 + 0 + 46.74)
=522.101

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 %:

Ganfeng Lithium Group 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 )
=-23.339/646.152
=-3.61 %

* 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.


Ganfeng Lithium Group Co Operating Income Related Terms

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Ganfeng Lithium Group Co (STU:39EA) Business Description

Traded in Other Exchanges
Address
248 Queen’s Road East, 40th Floor, Dah Sing Financial Centre, Wanchai, Hong Kong, HKG
Founded in 2000, Ganfeng is the world's third largest and China's largest lithium compounds producer and the world's largest lithium metals producer in terms of production capacity. The company offers five major categories of more than 40 lithium compounds and metals products, which is one of the most comprehensive product offerings among the suppliers globally. Starting as a midstream manufacturer of lithium compounds and lithium metals, Ganfeng has successfully expanded into a vertically integrated business model with operations along the critical stages of the industry value chain, including upstream lithium extraction, midstream lithium compounds and metals processing, and downstream lithium battery production and recycling.

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