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Sime Darby Plantation Bhd (XKLS:5285) Operating Income : RM1,793 Mil (TTM As of Dec. 2023)


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What is Sime Darby Plantation Bhd Operating Income?

Sime Darby Plantation Bhd's Operating Income for the three months ended in Dec. 2023 was RM-704 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was RM1,793 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Sime Darby Plantation Bhd's Operating Income for the three months ended in Dec. 2023 was RM-704 Mil. Sime Darby Plantation Bhd's Revenue for the three months ended in Dec. 2023 was RM5,280 Mil. Therefore, Sime Darby Plantation Bhd's Operating Margin % for the quarter that ended in Dec. 2023 was -13.33%.

Good Sign:

Sime Darby Plantation Bhd operating margin is expanding. Margin expansion is usually a good sign.

Sime Darby Plantation Bhd's 5-Year average Growth Rate for Operating Margin % was 5.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Sime Darby Plantation Bhd's annualized ROC % for the quarter that ended in Dec. 2023 was -6.10%. Sime Darby Plantation Bhd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 7.27%.


Sime Darby Plantation Bhd Operating Income Historical Data

The historical data trend for Sime Darby Plantation Bhd'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.

Sime Darby Plantation Bhd Operating Income Chart

Sime Darby Plantation Bhd Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 716.30 1,786.98 3,926.44 3,162.38 1,884.34

Sime Darby Plantation Bhd Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 543.38 301.00 520.00 1,676.00 -703.66

Sime Darby Plantation Bhd 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 RM1,793 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.


Sime Darby Plantation Bhd  (XKLS:5285) Operating Income Explanation

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

Sime Darby Plantation Bhd'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 )
=-2814.648 * ( 1 - 38.2% )/( (28971 + 28054.839)/ 2 )
=-1739.452464/28512.9195
=-6.10 %

where

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))
=31886.454 - 3001.233 - ( 830.382 - max(0, 4802.735 - 6374.782+830.382))
=28054.839

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

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

Sime Darby Plantation Bhd'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 )
=1744.68/( ( (21013 + max(3630, 0)) + (21205.8 + max(2170.785, 0)) )/ 2 )
=1744.68/( ( 24643 + 23376.585 )/ 2 )
=1744.68/24009.7925
=7.27 %

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)
=(2316 + 3345 + 648) - (2599 + 0 + 80)
=3630

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1462.93 + 2839.179 + 945.192) - (3001.233 + 0 + 75.282999999999)
=2170.785

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 %:

Sime Darby Plantation Bhd'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 )
=-703.662/5279.883
=-13.33 %

* 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.


Sime Darby Plantation Bhd Operating Income Related Terms

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Sime Darby Plantation Bhd (XKLS:5285) Business Description

Traded in Other Exchanges
Address
No. 2, Jalan PJU 1A/7, Plantation Tower, Level 10, Main Block, Ara Damansara, Petaling Jaya, SGR, MYS, 47301
Sime Darby Plantation Bhd is a palm oil plantation company. It is engaged in oil palm cultivation, harvesting, and milling in Malaysia. The company's segment includes Upstream Malaysia, Upstream Indonesia, Upstream Papua New Guinea and the Solomon Islands, Upstream Liberia, Downstream, and Other operations. It generates maximum revenue from the Downstream segment. Geographically, it derives a majority of its revenue from Malaysia and also has a presence in Europe, India, Indonesia, Thailand, Other countries in South East Asia, South Africa, Papua New Guinea and the Solomon Islands, China, Liberia, and Other countries.

Sime Darby Plantation Bhd (XKLS:5285) Headlines

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