Hanwa Co (TSE:8078) Operating Income : 円49,723 Mil (TTM As of Dec. 2023)

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What is Hanwa Co Operating Income?

Hanwa Co's Operating Income for the three months ended in Dec. 2023 was 円16,128 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was 円49,723 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Hanwa Co's Operating Income for the three months ended in Dec. 2023 was 円16,128 Mil. Hanwa Co's Revenue for the three months ended in Dec. 2023 was 円625,352 Mil. Therefore, Hanwa Co's Operating Margin % for the quarter that ended in Dec. 2023 was 2.58%.

Good Sign:

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

Hanwa Co's 5-Year average Growth Rate for Operating Margin % was 12.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Hanwa Co's annualized ROC % for the quarter that ended in Dec. 2023 was 5.70%. Hanwa Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 13.99%.

Hanwa Co Operating Income Historical Data

The historical data trend for Hanwa 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.

Hanwa Co Operating Income Chart

Hanwa Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Operating Income

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27,330.00

29,233.00

62,367.00

64,106.00

49,723.00

Hanwa Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															8,038.00	16,278.00	10,062.00	16,128.00	7,255.00

Hanwa 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 Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was 円49,723 Mil.

Hanwa Co (TSE:8078) Operating Income Explanation

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

Hanwa Co's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	64512 * ( 1 - 30.66% )	/	( (789466	+	781176)	/ 2 )
=	44732.6208	/	785321
=	5.70 %

where

	Invested Capital		(Q: Sep. 2023 )
=	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	))
=	1183200	-	316244	-	( 77490	-	max(0, 541892	-	940405	+	77490	))
=	789466

	Invested Capital		(Q: Dec. 2023 )
=	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	))
=	1152671	-	297686	-	( 73809	-	max(0, 480804	-	912309	+	73809	))
=	781176

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

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

Hanwa Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	75452	/	( ( (90899 + max(452963, 0))	+	(90028 + max(444600, 0)) )	/	2 )
=	75452	/	( ( 543862	+	534628 )	/	2 )
=	75452	/	539245
=	13.99 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(453051	+	254054	+	155810)	-	(316244	+	0	+	93708)
=	452963

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(430266	+	243901	+	164333)	-	(297686	+	0	+	96214)
=	444600

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

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

Hanwa Co's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	16128	/	625352
	=	2.58 %

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.

Hanwa Co Operating Income Related Terms

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Hanwa Co (TSE:8078) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Hanwa Co Ltd (TSE:8078) » Definitions » Operating Income

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HW4:Germany

Address

1-13-1, Tsukiji, Chuo-ku, Ginza Shochiku Square Building, Tokyo, JPN, 104-8429

Website

https://www.hanwa.co.jp

Hanwa Co Ltd is a Japan-based trading company with seven segments. The steel segment handles steel products and building materials. The metals and alloys segment supplies chromium, manganese, and other metals. The nonferrous metals segment recycles aluminum, copper, nickel, and chromium. The food products segment handles seafood. The petroleum and chemicals segment trades petroleum products and others. The overseas sales subsidiaries segment comprises Hanwa's overseas subsidiaries in North America and Asia. The other business segment imports forest products and handles amusement facilities and industrial machinery. Steel, petroleum and chemicals, and metals and alloys are the three largest segments by revenue contribution. Hanwa generates most of its revenue from Japanese domestic market.

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