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Sembcorp Industries (STU:SBOA) Operating Income : €771 Mil (TTM As of Dec. 2024)


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What is Sembcorp Industries Operating Income?

Sembcorp Industries's Operating Income for the six months ended in Dec. 2024 was €405 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was €771 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Sembcorp Industries's Operating Income for the six months ended in Dec. 2024 was €405 Mil. Sembcorp Industries's Revenue for the six months ended in Dec. 2024 was €2,269 Mil. Therefore, Sembcorp Industries's Operating Margin % for the quarter that ended in Dec. 2024 was 17.86%.

Good Sign:

Sembcorp Industries Ltd operating margin is expanding. Margin expansion is usually a good sign.

Sembcorp Industries's 5-Year average Growth Rate for Operating Margin % was 10.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Sembcorp Industries's annualized ROC % for the quarter that ended in Dec. 2024 was 6.21%. Sembcorp Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 19.51%.


Sembcorp Industries Operating Income Historical Data

The historical data trend for Sembcorp Industries'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.

Sembcorp Industries Operating Income Chart

Sembcorp Industries Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 351.03 289.50 512.57 810.23 782.16

Sembcorp Industries Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 282.82 441.55 368.29 365.63 405.22

Sembcorp Industries 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 Dec. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was €771 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.


Sembcorp Industries  (STU:SBOA) Operating Income Explanation

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

Sembcorp Industries's annualized ROC % for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=810.448 * ( 1 - 16.67% )/( (10467.315 + 11286.878)/ 2 )
=675.3463184/10877.0965
=6.21 %

where

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))
=12109.234 - 1378.002 - ( 833.674 - max(0, 2028.171 - 2292.088+833.674))
=10467.315

Invested Capital(Q: Dec. 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))
=12855.443 - 1249.619 - ( 696.59 - max(0, 2058.653 - 2377.599+696.59))
=11286.878

Note: The Operating Income data used here is two times the semi-annual (Dec. 2024) data.

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

Sembcorp Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Dec. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1108.886/( ( (5406.853 + max(-118.899, 0)) + (5872.571 + max(89.814000000001, 0)) )/ 2 )
=1108.886/( ( 5406.853 + 5962.385 )/ 2 )
=1108.886/5684.619
=19.51 %

where Working Capital is:

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1351.885 + 92.783 + 0.68800000000056) - (1378.002 + 0 + 186.253)
=-118.899

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1281.443 + 95.472 + 277.928) - (1249.619 + 0 + 315.41)
=89.814000000001

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2024) EBIT data.

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

Sembcorp Industries's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2024 )/Revenue (Q: Dec. 2024 )
=405.224/2269.398
=17.86 %

* 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.


Sembcorp Industries Operating Income Related Terms

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Sembcorp Industries Business Description

Traded in Other Exchanges
Address
30 Hill Street, Number 05-04, Singapore, SGP, 179360
Sembcorp Industries Ltd is an investment holding company engaged in the production and supply of utility services, and handling and storage of petroleum products and chemicals. Its business is divided into four segments: Gas and Related Services, Renewables, Integrated Urban Solutions, Decarbonisation Solutions, Other Businesses and Corporate. The company's service portfolio includes power generation, process steam production, wastewater treatment, integrated solutions for offshore and marine industries such as specialized shipbuilding, and repairs & upgrades, and among others. A vast majority of the company's income is generated by the energy segment, and the majority of the company's revenue is earned in Singapore and India together.

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