Song Chuan Precision Co (TPE:7788) Operating Income: NT$495 Mil (TTM As of Mar. 2026)

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TPE:7788 Song Chuan Precision Co Ltd TPE:7788
16 GF Score
Price NT$218.00
! 4 Warning Signs
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What is Song Chuan Precision Co Operating Income?

Song Chuan Precision Co TPE:7788 +3.81% 16 Operating Income is NT$495 Mil as of Mar. 2026. GuruFocus rates TPE:7788 with a GF Score™ of 16/100. The stock has 4 warning signs investors should review.

Song Chuan Precision Co's Operating Income for the three months ended in Mar. 2026 was NT$175 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was NT$495 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Song Chuan Precision Co's Operating Income for the three months ended in Mar. 2026 was NT$175 Mil. Song Chuan Precision Co's Revenue for the three months ended in Mar. 2026 was NT$1,857 Mil. Therefore, Song Chuan Precision Co's Operating Margin % for the quarter that ended in Mar. 2026 was 9.43%.

Song Chuan Precision Co'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. Song Chuan Precision Co's annualized ROC % for the quarter that ended in Mar. 2026 was 7.89%. Song Chuan Precision Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 16.37%.


Song Chuan Precision Co  (TPE:7788) Operating Income Explanation

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

Song Chuan Precision Co's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=700.176 * ( 1 - 23.05% )/( (6731.541 + 6919.124)/ 2 )
=538.785432/6825.3325
=7.89 %

where

Invested Capital(Q: Dec. 2025 )
=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))
=10574.15 - 1576.455 - ( 2266.154 - max(0, 2982.353 - 6172.536+2266.154))
=6731.541

Invested Capital(Q: Mar. 2026 )
=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))
=11007.682 - 1953.803 - ( 2134.755 - max(0, 3373.457 - 6568.822+2134.755))
=6919.124

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

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

Song Chuan Precision Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=984.596/( ( (3945.402 + max(2013.663, 0)) + (3970.754 + max(2101.819, 0)) )/ 2 )
=984.596/( ( 5959.065 + 6072.573 )/ 2 )
=984.596/6015.819
=16.37 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1483.212 + 2028.449 + 110.472) - (1576.455 + 0 + 32.015)
=2013.663

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1698.713 + 2271.932 + 121.026) - (1953.803 + 0 + 36.049)
=2101.819

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

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

Song Chuan Precision Co's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=175.044/1857.129
=9.43 %

* 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.


Song Chuan Precision Co Operating Income Related Terms


Song Chuan Precision Co Operating Income Historical Data

* Premium members only.

The historical data trend for Song Chuan Precision 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.

Song Chuan Precision Co Operating Income Chart

Song Chuan Precision Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial 294.76 590.42 338.24 544.74 478.36

Song Chuan Precision Co Quarterly Data
Dec20 Dec21 Dec22 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 158.23 147.45 99.82 72.85 175.04
TPE:7788
16GF Score
Song Chuan Precision Co Ltd TPE:7788
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Song Chuan Precision 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. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was NT$495 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of NT$495 Mil mean?
Song Chuan Precision Co (TPE:7788) has a Operating Income of NT$495 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Song Chuan Precision Co and its competitors.
Is Song Chuan Precision Co's Operating Income too high?
Song Chuan Precision Co's current Operating Income is NT$495 Mil. Overall, Song Chuan Precision Co has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Song Chuan Precision Co's Operating Income compare to VRT and BE?
Song Chuan Precision Co's Operating Income of NT$495 Mil can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for an Industrial Products company?
A good Operating Income depends on the Industrial Products industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Song Chuan Precision Co and its competitors. Song Chuan Precision Co's current Operating Income is NT$495 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Song Chuan Precision Co stock overvalued right now?
Song Chuan Precision Co (TPE:7788) has a current Operating Income of NT$495 Mil. The current Operating Income is NT$495 Mil. Song Chuan Precision Co's overall GF Score™ is 16/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Song Chuan Precision Co (TPE:7788), the current Operating Income is NT$495 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Song Chuan Precision Co Business Description

Address No.377, Jhonghua Road, Shulin District, New Taipei City, Taipei, TWN, 238
Song Chuan Precision Co Ltd is engaged in the research and development, manufacturing, processing, and sales of electronic components such as relays and capacitors. Its product range includes PCB and plug-in automotive relays, PCB miniature power relays, Industrial and general purpose relays, and Safety relays. Its products are used in various applications such as home appliances, automotives, IT products, other applications. The company's segment includes Song Chung, Xiamen, America, Shanghai, and Other segment.
16GF Score

Get the complete analysis for TPE:7788

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$218.00
Price