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Nishimatsuya Chain Co (TSE:7545) Operating Income : 円11,647 Mil (TTM As of Aug. 2024)


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What is Nishimatsuya Chain Co Operating Income?

Nishimatsuya Chain Co's Operating Income for the three months ended in Aug. 2024 was 円2,073 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2024 was 円11,647 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Nishimatsuya Chain Co's Operating Income for the three months ended in Aug. 2024 was 円2,073 Mil. Nishimatsuya Chain Co's Revenue for the three months ended in Aug. 2024 was 円43,769 Mil. Therefore, Nishimatsuya Chain Co's Operating Margin % for the quarter that ended in Aug. 2024 was 4.74%.

Good Sign:

Nishimatsuya Chain Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

Nishimatsuya Chain Co's 5-Year average Growth Rate for Operating Margin % was 31.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Nishimatsuya Chain Co's annualized ROC % for the quarter that ended in Aug. 2024 was 6.95%. Nishimatsuya Chain Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2024 was 49.63%.


Nishimatsuya Chain Co Operating Income Historical Data

The historical data trend for Nishimatsuya Chain 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.

Nishimatsuya Chain Co Operating Income Chart

Nishimatsuya Chain Co Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,912.00 12,100.00 12,259.00 10,933.00 11,927.00

Nishimatsuya Chain Co Quarterly Data
Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24
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 4,083.00 1,105.00 4,951.00 2,073.00 3,518.00

Nishimatsuya Chain 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 Aug. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was 円11,647 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.


Nishimatsuya Chain Co  (TSE:7545) Operating Income Explanation

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

Nishimatsuya Chain Co's annualized ROC % for the quarter that ended in Aug. 2024 is calculated as:

ROC % (Q: Aug. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: May. 2024 ) + Invested Capital (Q: Aug. 2024 ))/ count )
=8292 * ( 1 - 35.92% )/( (78830 + 74178)/ 2 )
=5313.5136/76504
=6.95 %

where

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

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

Nishimatsuya Chain Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Aug. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: May. 2024  Q: Aug. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=8112/( ( (16275 + max(-9497, 0)) + (16418 + max(-9794, 0)) )/ 2 )
=8112/( ( 16275 + 16418 )/ 2 )
=8112/16346.5
=49.63 %

where Working Capital is:

Working Capital(Q: May. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7331 + 33495 + 3449) - (11355 + 0 + 42417)
=-9497

Working Capital(Q: Aug. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5931 + 34399 + 3093) - (15737 + 0 + 37480)
=-9794

When net working capital is negative, 0 is used.

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

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

Nishimatsuya Chain Co's Operating Margin % for the quarter that ended in Aug. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Aug. 2024 )/Revenue (Q: Aug. 2024 )
=2073/43769
=4.74 %

* 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.


Nishimatsuya Chain Co Operating Income Related Terms

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Nishimatsuya Chain Co Business Description

Traded in Other Exchanges
N/A
Address
266-1 Kantochosho, Hyogo Prefecture, Himeji City, JPN, 6710218
Nishimatsuya Chain Co Ltd is a Japanese retailer that sells clothing and other goods for children and babies. The company also manufactures items for its private-label brand. Apparel includes outerwear, underwear, pajamas, hats, shoes, and maternity clothing. Other products include hygiene products, toys, strollers, high chairs, and bedroom items. Nishimatsuya has nearly 1,000 stores throughout Japan, in Kanto, Chubu, Kinki, Tohoku, Kyushu, Hokkaido, Hokuriku, and Chugoku. The company also has a substantial e-commerce business.

Nishimatsuya Chain Co Headlines

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