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Nippon Light Metal Holdings Co (TSE:5703) Operating Income : 円21,042 Mil (TTM As of Sep. 2024)


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What is Nippon Light Metal Holdings Co Operating Income?

Nippon Light Metal Holdings Co's Operating Income for the three months ended in Sep. 2024 was 円4,357 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was 円21,042 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Nippon Light Metal Holdings Co's Operating Income for the three months ended in Sep. 2024 was 円4,357 Mil. Nippon Light Metal Holdings Co's Revenue for the three months ended in Sep. 2024 was 円132,518 Mil. Therefore, Nippon Light Metal Holdings Co's Operating Margin % for the quarter that ended in Sep. 2024 was 3.29%.

Warning Sign:

Nippon Light Metal Holdings Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -17.7%.

Nippon Light Metal Holdings Co's 5-Year average Growth Rate for Operating Margin % was -17.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Nippon Light Metal Holdings Co's annualized ROC % for the quarter that ended in Sep. 2024 was 3.25%. Nippon Light Metal Holdings Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 5.02%.


Nippon Light Metal Holdings Co Operating Income Historical Data

The historical data trend for Nippon Light Metal Holdings 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.

Nippon Light Metal Holdings Co Operating Income Chart

Nippon Light Metal Holdings Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24,607.00 24,194.00 22,198.00 7,539.00 18,189.00

Nippon Light Metal Holdings Co 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 3,710.00 6,985.00 5,523.00 4,177.00 4,357.00

Nippon Light Metal Holdings 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 Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was 円21,042 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.


Nippon Light Metal Holdings Co  (TSE:5703) Operating Income Explanation

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

Nippon Light Metal Holdings Co'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 )
=17428 * ( 1 - 18.87% )/( (0 + 435381)/ 1 )
=14139.3364/435381
=3.25 %

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:

Nippon Light Metal Holdings Co'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 )
=16832/( ( (0 + max(0, 0)) + (177707 + max(157472, 0)) )/ 1 )
=16832/( ( 0 + 335179 )/ 1 )
=16832/335179
=5.02 %

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)
=(0 + 0 + 0) - (0 + 0 + 0)
=0

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(141584 + 104917 + 13156) - (64163 + 0 + 38022)
=157472

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 %:

Nippon Light Metal Holdings Co'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 )
=4357/132518
=3.29 %

* 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.


Nippon Light Metal Holdings Co Operating Income Related Terms

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Nippon Light Metal Holdings Co Business Description

Traded in Other Exchanges
N/A
Address
Tennozu Yusen Building, 2-2-20 Higashi-Shinagawa, Shinagawa-ku, Tokyo, JPN, 140-8628
Nippon Light Metal Holdings Co Ltd manufactures and sells alumina, aluminum, and fabricated products to customers worldwide. The company produces alloys, spark plug components, car suspension parts and aluminum sheets for the automotive industry and rolling stocks and truck cargo gates for the transportation industry. Nippon also manufactures other alloys, aluminum and alumina products for multiple end customers including the electrical, food, and construction industries. The company has operations throughout Asia as well as the United States and France.

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