ZK International Group Co (ZK International Group Co) Operating Income : $-1.3 Mil (TTM As of Mar. 2023)

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What is ZK International Group Co Operating Income?

ZK International Group Co's Operating Income for the six months ended in Mar. 2023 was $0.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2023 was $-1.3 Mil.

Warning Sign:

ZK International Group Co Ltd has never been profitable in the past 3 years. It lost money every year.

Operating Margin % is calculated as Operating Income divided by its Revenue. ZK International Group Co's Operating Income for the six months ended in Mar. 2023 was $0.1 Mil. ZK International Group Co's Revenue for the six months ended in Mar. 2023 was $49.7 Mil. Therefore, ZK International Group Co's Operating Margin % for the quarter that ended in Mar. 2023 was 0.29%.

ZK International Group Co's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. ZK International Group Co's annualized ROC % for the quarter that ended in Mar. 2023 was 0.27%. ZK International Group Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2023 was 1.57%.

ZK International Group Co Operating Income Historical Data

The historical data trend for ZK International Group 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.

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ZK International Group Co Operating Income Chart

ZK International Group Co Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Operating Income

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9.62

8.65

-1.88

-3.65

-1.19

ZK International Group Co Semi-Annual Data
	Sep15	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23
Operating Income	Get a 7-Day Free Trial										-1.65	-2.01	0.24	-1.44	0.14

ZK International Group 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. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was $-1.3 Mil.

ZK International Group Co (NAS:ZKIN) Operating Income Explanation

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

ZK International Group Co's annualized ROC % for the quarter that ended in Mar. 2023 is calculated as:

	ROC % (Q: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2022 )	+	Invested Capital (Q: Mar. 2023 ))	/ count )
=	0.284 * ( 1 - 0% )	/	( (101.529	+	107.547)	/ 2 )
=	0.284	/	104.538
=	0.27 %

where

	Invested Capital		(Q: Sep. 2022 )
=	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	))
=	128.924	-	18.964	-	( 8.431	-	max(0, 43.849	-	66.77	+	8.431	))
=	101.529

	Invested Capital		(Q: Mar. 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	))
=	121.573	-	11.392	-	( 2.634	-	max(0, 34.633	-	58.262	+	2.634	))
=	107.547

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

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

ZK International Group Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2022		Q: Mar. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	0.658	/	( ( (7.156 + max(32.404, 0))	+	(7.952 + max(36.5, 0)) )	/	2 )
=	0.658	/	( ( 39.56	+	44.452 )	/	2 )
=	0.658	/	42.006
=	1.57 %

where Working Capital is:

	Working Capital		(Q: Sep. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(28.363	+	21.142	+	6.424)	-	(18.964	+	1.759	+	2.802)
=	32.404

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(20.174	+	21.976	+	7.482)	-	(11.392	+	1.74	+	0)
=	36.5

When net working capital is negative, 0 is used.

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

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

ZK International Group Co's Operating Margin % for the quarter that ended in Mar. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2023 )	/	Revenue (Q: Mar. 2023 )
	=	0.142	/	49.655
	=	0.29 %

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.

ZK International Group Co Operating Income Related Terms

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ZK International Group Co (ZK International Group Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » ZK International Group Co Ltd (NAS:ZKIN) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

C/o Zhejiang Zhengkang Industrial Co., Ltd., No. 678 Dingxiang Road, Binhai Industrial Park, Zhejiang Province, Economic and Technology Development Zone, Wenzhou, CHN, 325025

Website

https://www.zkinternationalgroup.com

ZK International Group Co Ltd is engaged in the manufacture and marketing of metal pipes. The company is specialized in producing double-press thin-walled stainless steel tube and fittings, carbon steel tube and fittings, single-press tube and fittings, and stainless-steel strip. The products are used in restaurants, hotel, hospital, firefighting, food, beverage, ship, engine, industrial seawater desalination and systems of direct-drinking water, cold /hot water supply, city water supply, gas of large/middle scale construction projects.