Church & Dwight Co (Church & Dwight Co) Operating Income : $1,057 Mil (TTM As of Dec. 2023)

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What is Church & Dwight Co Operating Income?

Church & Dwight Co's Operating Income for the three months ended in Dec. 2023 was $216 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $1,057 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Church & Dwight Co's Operating Income for the three months ended in Dec. 2023 was $216 Mil. Church & Dwight Co's Revenue for the three months ended in Dec. 2023 was $1,528 Mil. Therefore, Church & Dwight Co's Operating Margin % for the quarter that ended in Dec. 2023 was 14.14%.

Warning Sign:

Church & Dwight Co Inc operating margin has been in a 5-year decline. The average rate of decline per year is -5.4%.

Church & Dwight Co's 5-Year average Growth Rate for Operating Margin % was -5.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Church & Dwight Co's annualized ROC % for the quarter that ended in Dec. 2023 was 9.58%. Church & Dwight Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 99.30%.

Church & Dwight Co Operating Income Historical Data

The historical data trend for Church & Dwight 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.

Church & Dwight Co Operating Income Chart

Church & Dwight Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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840.20

1,029.70

1,079.10

597.80

1,057.40

Church & Dwight Co 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															-198.40	291.90	293.60	255.80	216.10

Church & Dwight 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 Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,057 Mil.

Church & Dwight Co (NYSE:CHD) Operating Income Explanation

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

Church & Dwight Co'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 )
=	864.4 * ( 1 - 21.26% )	/	( (6961.4	+	7243.3)	/ 2 )
=	680.62856	/	7102.35
=	9.58 %

where

	Invested Capital		(Q: Sep. 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	))
=	8702.2	-	1184.6	-	( 573.3	-	max(0, 1188.4	-	1744.6	+	573.3	))
=	6961.4

	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	))
=	8569.2	-	1218.2	-	( 344.5	-	max(0, 1422	-	1529.7	+	344.5	))
=	7243.3

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

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

Church & Dwight Co'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 )
=	888.8	/	( ( (862.4 + max(-13.3, 0))	+	(927.7 + max(-33, 0)) )	/	2 )
=	888.8	/	( ( 862.4	+	927.7 )	/	2 )
=	888.8	/	895.05
=	99.30 %

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)
=	(460.9	+	671.7	+	38.7)	-	(1184.6	+	0	+	2.2737367544323E-13)
=	-13.3

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(526.9	+	613.3	+	45)	-	(1218.2	+	0	+	0)
=	-33

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 %:

Church & Dwight Co'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 )
	=	216.1	/	1528
	=	14.14 %

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.

Church & Dwight Co Operating Income Related Terms

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

Church & Dwight Co (Church & Dwight Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Church & Dwight Co Inc (NYSE:CHD) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

CHD:Mexico CXU:Germany

Address

500 Charles Ewing Boulevard, Ewing, NJ, USA, 08628

Website

https://www.churchdwight.com

Church & Dwight is the leading global producer of baking soda. Beyond baking soda, the products in its portfolio have vast category reach, including laundry products, cat litter, oral care, deodorant, and nasal care, all sold under the Arm & Hammer brand. Its mix also includes Xtra, Trojan, OxiClean, First Response, Nair, L'il Critters/Vitafusion, Orajel, and WaterPik, which together with Arm & Hammer constitute more than 80% of its annual sales and profits. In early 2019, the firm announced the addition of Flawless, which manufactures electric shaving products for women. At the end of 2020, the firm acquired Zicam, a leading brand in the cough/cold-shortening category. Church & Dwight derives more than 80% of its sales from its home market in the U.S.

Executives

Michael Read	officer: EVP, International	500 CHARLES EWING BLVD, EWING NJ 08628
Matthew Farrell	officer: Vice President Finance and CFO
Richard A Dierker	officer: E.V.P. Finance & C.F.O.	500 CHARLES EWING BLVD, EWING NJ 08628
Rene Hemsey	officer: E.V.P. HR	500 CHARLES EWING BLVD, EWING NJ 08628
Bradley C Irwin	director	469 NORTH HARRISON STREET, PRINCETON NJ 08543
De Maynadier Patrick D	officer: EVP, Gen. Counsel & Secretary
Carlen Hooker	officer: EVP, Chief Commercial Officer	500 CHARLES EWING BLVD, EWING NJ 08628
Ravichandra Krishnamurty Saligram	director	C/O NEWELL BRANDS INC., 6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328
Paul Richard Wood	officer: EVP, Sales	500 CHARLES EWING BLVD, EWING NJ 08628
Brian D Buchert	officer: EVP of Strategy, M&A, and BP	500 CHARLES EWING BLVD, EWING NJ 08628
Barry A. Bruno	officer: EVP, International	500 CHARLES EWING BLVD, EWING NJ 08628
James Craigie	director, officer: President, Chief Executive Off	500 CHARLES EWING BLVD, EWING NJ 08628
Arthur B Winkleblack	director
Brad Cashaw	director	2711 NORTH HASKELL AVENUE, SUITE 3400, DALLAS TX 75204
Robert K Shearer	director	400 NORTH ELM STREET, GREENSBORO NC 27403