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Arclands (TSE:9842) Operating Income : 円16,113 Mil (TTM As of Feb. 2024)


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What is Arclands Operating Income?

Arclands's Operating Income for the three months ended in Feb. 2024 was 円3,906 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2024 was 円16,113 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Arclands's Operating Income for the three months ended in Feb. 2024 was 円3,906 Mil. Arclands's Revenue for the three months ended in Feb. 2024 was 円78,654 Mil. Therefore, Arclands's Operating Margin % for the quarter that ended in Feb. 2024 was 4.97%.

Warning Sign:

Arclands Corp operating margin has been in a 5-year decline. The average rate of decline per year is -12.3%.

Arclands's 5-Year average Growth Rate for Operating Margin % was -12.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Arclands's annualized ROC % for the quarter that ended in Feb. 2024 was 1.47%. Arclands's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2024 was 1.08%.


Arclands Operating Income Historical Data

The historical data trend for Arclands'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.

Arclands Operating Income Chart

Arclands 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 9,576.00 16,116.00 20,919.00 18,912.00 16,113.00

Arclands Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 3,250.00 4,204.00 4,673.00 3,330.00 3,906.00

Arclands 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 Feb. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was 円16,113 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.


Arclands  (TSE:9842) Operating Income Explanation

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

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

ROC % (Q: Feb. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2023 ) + Invested Capital (Q: Feb. 2024 ))/ count )
=15624 * ( 1 - 67.47% )/( (352758 + 336579)/ 2 )
=5082.4872/344668.5
=1.47 %

where

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

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

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

ROC (Joel Greenblatt) %(Q: Feb. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Nov. 2023  Q: Feb. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2556/( ( (222885 + max(17225, 0)) + (217442 + max(15927, 0)) )/ 2 )
=2556/( ( 240110 + 233369 )/ 2 )
=2556/236739.5
=1.08 %

where Working Capital is:

Working Capital(Q: Nov. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(10028 + 58675 + 4896) - (24789 + 0 + 31585)
=17225

Working Capital(Q: Feb. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(9560 + 52853 + 4705) - (25609 + 0 + 25582)
=15927

When net working capital is negative, 0 is used.

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

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

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

Operating Margin %=Operating Income (Q: Feb. 2024 )/Revenue (Q: Feb. 2024 )
=3906/78654
=4.97 %

* 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.


Arclands Operating Income Related Terms

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Arclands (TSE:9842) Business Description

Traded in Other Exchanges
N/A
Address
1-13-1 Kamikizaki, Urawa-ku, Saitama Prefecture, Saitama City, JPN, 330-8671
Arclands Corp, formerly Arcland Sakamoto Co Ltd retails and wholesales general and Do It Yourself (DIY) products. The company operates an online shop, wholesale business, arts and craft and specialty store, supermarket, drug store and restaurants. The company through these outlets offers the over-the-counter sale of DIY related products, gardening equipment, pet supplies, home supplies, and specialty foods. It also manages the Katsuya shop that specializes in fried pork.

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