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Adesso SE (XTER:ADN1) Operating Income : €21 Mil (TTM As of Dec. 2023)


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What is Adesso SE Operating Income?

Adesso SE's Operating Income for the six months ended in Dec. 2023 was €22 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was €21 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Adesso SE's Operating Income for the six months ended in Dec. 2023 was €22 Mil. Adesso SE's Revenue for the six months ended in Dec. 2023 was €590 Mil. Therefore, Adesso SE's Operating Margin % for the quarter that ended in Dec. 2023 was 3.70%.

Warning Sign:

Adesso SE operating margin has been in a 5-year decline. The average rate of decline per year is -16.5%.

Adesso SE's 5-Year average Growth Rate for Operating Margin % was -16.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Adesso SE's annualized ROC % for the quarter that ended in Dec. 2023 was 4.06%. Adesso SE's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 23.84%.


Adesso SE Operating Income Historical Data

The historical data trend for Adesso SE'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.

Adesso SE Operating Income Chart

Adesso SE 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 23.94 36.63 47.97 38.89 20.62

Adesso SE Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 7.73 17.71 21.18 -1.19 21.81

Adesso SE 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 semi-annually data reported by the company within the most recent 12 months, which was €21 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.


Adesso SE  (XTER:ADN1) Operating Income Explanation

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

Adesso SE'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: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=43.626 * ( 1 - 44.65% )/( (667.016 + 522.459)/ 2 )
=24.146991/594.7375
=4.06 %

where

Invested Capital(Q: Jun. 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))
=729.817 - 43.298 - ( 40.534 - max(0, 356.154 - 375.657+40.534))
=667.016

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))
=785.985 - 160.517 - ( 103.009 - max(0, 286.876 - 389.886+103.009))
=522.459

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

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

Adesso SE'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: Jun. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=49.034/( ( (187.612 + max(-148.321, 0)) + (223.783 + max(-50.54, 0)) )/ 2 )
=49.034/( ( 187.612 + 223.783 )/ 2 )
=49.034/205.6975
=23.84 %

where Working Capital is:

Working Capital(Q: Jun. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(153.511 + 0 + 26.947) - (43.298 + 0 + 285.481)
=-148.321

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(181.893 + 0 + 15.045) - (160.517 + 0 + 86.961)
=-50.54

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

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

Adesso SE'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 )
=21.813/589.607
=3.70 %

* 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.


Adesso SE Operating Income Related Terms

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


Adesso SE (XTER:ADN1) Business Description

Traded in Other Exchanges
Address
Adessoplatz 1, Dortmund, NW, DEU, 44269
Adesso SE is a German IT service provider company. The company offers consulting and software development services for optimising core business processes. It also offers ready-to-use software products for standard applications. The company generates most of its sales revenue through consulting and software development in Germany. It has two segments, namely, IT Services and IT Solutions. The IT Services segment offers customised, project-oriented services in the areas of consulting and software development. The IT Solutions segment markets its own solutions as homegrown products or standard software products. The IT service segment generates majority of revenue.
Executives
Prof. Dr. Volker Gruhn Supervisory Board
Michael Kenfenheuer Board of Directors
Rainer Rudolf Supervisory Board

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