GURUFOCUS.COM » STOCK LIST » Technology » Software » Ring Net Co Ltd (XKRX:042500) » Definitions » Operating Income

Ring Net Co (XKRX:042500) Operating Income : ₩16,923 Mil (TTM As of Mar. 2024)


View and export this data going back to 2002. Start your Free Trial

What is Ring Net Co Operating Income?

Ring Net Co's Operating Income for the three months ended in Mar. 2024 was ₩2,785 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₩16,923 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ring Net Co's Operating Income for the three months ended in Mar. 2024 was ₩2,785 Mil. Ring Net Co's Revenue for the three months ended in Mar. 2024 was ₩37,380 Mil. Therefore, Ring Net Co's Operating Margin % for the quarter that ended in Mar. 2024 was 7.45%.

Good Sign:

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

Ring Net Co's 5-Year average Growth Rate for Operating Margin % was 14.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Ring Net Co's annualized ROC % for the quarter that ended in Mar. 2024 was 12.41%. Ring Net Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 97.62%.


Ring Net Co Operating Income Historical Data

The historical data trend for Ring Net 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.

Ring Net Co Operating Income Chart

Ring Net Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7,035.85 7,382.01 10,628.23 10,886.18 16,366.67

Ring Net 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 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 2,229.49 1,488.59 5,591.33 7,057.26 2,785.44

Ring Net 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 Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ₩16,923 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.


Ring Net Co  (XKRX:042500) Operating Income Explanation

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

Ring Net Co's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=11141.748 * ( 1 - 25.44% )/( (73798.086 + 60097.827)/ 2 )
=8307.2873088/66947.9565
=12.41 %

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))
=151943.392 - 34296.574 - ( 43848.732 - max(0, 55737.667 - 116421.501+43848.732))
=73798.086

Invested Capital(Q: Mar. 2024 )
=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))
=142684.105 - 26430.765 - ( 60297.576 - max(0, 44737.045 - 100892.558+60297.576))
=60097.827

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

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

Ring Net Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=15791.916/( ( (7528.226 + max(17367.398, 0)) + (7458.503 + max(-3879.732, 0)) )/ 2 )
=15791.916/( ( 24895.624 + 7458.503 )/ 2 )
=15791.916/16177.0635
=97.62 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(43695.943 + 21312.58 + 7381.044) - (34296.574 + 0 + 20725.595)
=17367.398

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(14491.462 + 17596.44 + 8080.624) - (26430.765 + 0 + 17617.493)
=-3879.732

When net working capital is negative, 0 is used.

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

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

Ring Net Co's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=2785.437/37380.054
=7.45 %

* 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.


Ring Net Co Operating Income Related Terms

Thank you for viewing the detailed overview of Ring Net Co's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Ring Net Co (XKRX:042500) Business Description

Traded in Other Exchanges
N/A
Address
No. 27, No. 409, Samsung IT Valley, 4th Floor, Guro-gu, Seoul, KOR
Ring Net Co Ltd is a specialized ICT service company. It offers solutions in the business areas of Network integration, System integration, Advanced service, Cloud, Collaboration and Security. System integration establishes an optimum information system through convergence and integration of complex IT resources; Network Integration relates to building network architecture and optimizing network infrastructure; Advanced Service provides services according to IT life cycle for consulting, construction, maintenance, and optimization; Cloud service provides virtualization, server and storage solutions for cloud computing environments; Collaboration covers IT telephony, unified communication, video conference and CCTV solution; and Security area provides security solutions.

Ring Net Co (XKRX:042500) Headlines

No Headlines