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SVT (Servotronics) Operating Income : $1.18 Mil (TTM As of Sep. 2024)


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What is Servotronics Operating Income?

Servotronics's Operating Income for the three months ended in Sep. 2024 was $0.29 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $1.18 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Servotronics's Operating Income for the three months ended in Sep. 2024 was $0.29 Mil. Servotronics's Revenue for the three months ended in Sep. 2024 was $12.43 Mil. Therefore, Servotronics's Operating Margin % for the quarter that ended in Sep. 2024 was 2.33%.

Servotronics'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. Servotronics's annualized ROC % for the quarter that ended in Sep. 2024 was 3.57%. Servotronics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was -3.60%.


Servotronics Operating Income Historical Data

The historical data trend for Servotronics'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.

Servotronics Operating Income Chart

Servotronics 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 3.24 0.24 2.19 -2.50 -2.11

Servotronics Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 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 0.28 0.51 -0.28 0.67 0.29

Servotronics 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. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.18 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.


Servotronics  (AMEX:SVT) Operating Income Explanation

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

Servotronics's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=1.156 * ( 1 - 0% )/( (31.527 + 33.204)/ 2 )
=1.156/32.3655
=3.57 %

where

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

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

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

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-1.124/( ( (7.082 + max(23.293, 0)) + (7.143 + max(24.968, 0)) )/ 2 )
=-1.124/( ( 30.375 + 32.111 )/ 2 )
=-1.124/31.243
=-3.60 %

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)
=(10.706 + 15.83 + 2.575) - (4.708 + 0 + 1.11)
=23.293

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(12.598 + 15.408 + 2.426) - (4.413 + 0 + 1.051)
=24.968

When net working capital is negative, 0 is used.

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

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

Servotronics's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2024 )/Revenue (Q: Sep. 2024 )
=0.289/12.43
=2.33 %

* 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.


Servotronics Operating Income Related Terms

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Servotronics Business Description

Traded in Other Exchanges
N/A
Address
1110 Maple Street, Post Office Box 300, Elma, NY, USA, 14059
Servotronics Inc is a U.S based company that designs, manufactures, and markets servo valves, including torque motor, hydraulic, and pneumatic valves. The company has single reportable segment which is aerospace Its products are marketed and sold throughout the United States and in select foreign markets. These products are sold to commercial aviation manufacturers, government prime contractors, government subcontractors, and end-users.
Executives
James C Takacs officer: Vice President 1110 MAPLE STREET, PO BOX 300, ELMA NY 14059
Beaver Hollow Wellness, Llc 10 percent owner 401 EAST AMHERST ST, BUFFALO NY 14215
Robert Fraass officer: Chief Financial Officer 1110 MAPLE STREET, PO BOX 300, ELMA NY 14059
Kenneth D Trbovich officer: President 1110 MAPLE STREET, ELMA NY 14059
Estate Of Nicholas D. Trbovich, Sr. 10 percent owner 960 PORTERVILLE ROAD, EAST AURORA NY 14052
Brent D Baird 10 percent owner 1350 ONE M&T PLAZA, BUFFALO NY 14203-2396
Evan H Wax director 44 CHERRY LANE, MADISON CT 06443
Founders Software, Inc. 10 percent owner 401 EAST AMHERST ST, BUFFALO NY 14215
Snyder Paul L. Iii 10 percent owner 401 EAST AMHERST ST, BUFFALO NY 14215
Edward C Cosgrove director 525 DELAWARE AVENUE, BUFFALO NY 14202
Lucion P Gygax director 1110 MAPLE STREET, ELMA NY 14059
Christopher M Marks director 360 DELAWARE AVENUE, SUITE 230, BUFFALO NY 14202
Farrell William F Jr. director, officer: Chief Executive Officer 1110 MAPLE STREET, PO BOX 300, ELMA NY 14059
Karen L Howard director C/O SERVOTRONICS, INC., 1110 MAPLE STREET, ELMA NY 14059
Jason T Bear director 5301 N. COMMERCE AVE., SUITE C, MOORPARK CA 93021