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Digital Realty Trust (Digital Realty Trust) Operating Income : $728 Mil (TTM As of Dec. 2023)


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What is Digital Realty Trust Operating Income?

Digital Realty Trust's Operating Income for the three months ended in Dec. 2023 was $180 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $728 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Digital Realty Trust's Operating Income for the three months ended in Dec. 2023 was $180 Mil. Digital Realty Trust's Revenue for the three months ended in Dec. 2023 was $1,370 Mil. Therefore, Digital Realty Trust's Operating Margin % for the quarter that ended in Dec. 2023 was 13.12%.

Warning Sign:

Digital Realty Trust Inc operating margin has been in a 5-year decline. The average rate of decline per year is -8%.

Digital Realty Trust's 5-Year average Growth Rate for Operating Margin % was -8.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Digital Realty Trust's annualized ROC % for the quarter that ended in Dec. 2023 was 0.83%. Digital Realty Trust's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 45.90%.


Digital Realty Trust Operating Income Historical Data

The historical data trend for Digital Realty Trust'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.

Digital Realty Trust Operating Income Chart

Digital Realty Trust 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 627.49 670.67 759.73 661.73 727.55

Digital Realty Trust 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 141.33 189.60 172.62 185.69 179.63

Digital Realty Trust 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 $728 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.


Digital Realty Trust  (NYSE:DLR) Operating Income Explanation

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

Digital Realty Trust'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 )
=718.52 * ( 1 - 51.03% )/( (41629.043 + 42984.305)/ 2 )
=351.859244/42306.674
=0.83 %

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))
=41932.517 - 2147.104 - ( 1062.05 - max(0, 4231.405 - 2387.775+1062.05))
=41629.043

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))
=44113.258 - 2556.972 - ( 1625.495 - max(0, 4810.127 - 3382.108+1625.495))
=42984.305

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

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

Digital Realty Trust'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 )
=617.012/( ( (1274.41 + max(-1578.223, 0)) + (1414.256 + max(-1567.587, 0)) )/ 2 )
=617.012/( ( 1274.41 + 1414.256 )/ 2 )
=617.012/1344.333
=45.90 %

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)
=(954.402 + 0 + 4.5474735088646E-13) - (2147.104 + 385.521 + 0)
=-1578.223

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(951.75 + 0 + 478.503) - (2556.972 + 401.867 + 39.001)
=-1567.587

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 %:

Digital Realty Trust'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 )
=179.63/1369.639
=13.12 %

* 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.


Digital Realty Trust Operating Income Related Terms

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


Digital Realty Trust (Digital Realty Trust) Business Description

Address
5707 Southwest Parkway, Building 1, Suite 275, Austin, TX, USA, 78735
Digital Realty owns and operates over 300 data centers worldwide. It has nearly 40 million rentable square feet across five continents. Digital's offerings range from retail co-location, where an enterprise may rent a single cabinet and rely on Digital to provide all the accommodations, to "cold shells," where hyperscale cloud service providers can simply rent much, or all, of a barren, power-connected building. In recent years, Digital Realty has de-emphasized cold shells and now primarily provides higher-level service to tenants, which outsource their related IT needs to Digital. Digital Realty has also moved more into the co-location business, increasingly serving enterprises and facilitating network and cloud connections. Digital Realty operates as a real estate investment trust.
Executives
Cindy Fiedelman officer: Chief Human Resources Officer FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO X1 94111
Peter C. Olson officer: Chief Accounting Officer 5707 SOUTHWEST PARKWAY, BUILDING 1, SUITE 275, AUSTIN TX 78735
Mandeville Jean F H P director C/O INTERXION, SCORPIUS 30, HOOFDDORP P7 2132 LR
Dyer Corey officer: EVP, Global Sales & Marketing FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111
Christopher Sharp officer: Chief Technology Officer FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111
Jeannie Lee officer: EVP, General Counsel 5707 SOUTHWEST PARKWAY, BUILDING 1, SUITE 275, AUSTIN TX 78735
A William Stein officer: CFO And CIO DIGITAL REALTY TRUST, INC., FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111
David C Ruberg officer: MANAGING DIRECTOR, EUROPE 16057 TAMPA PALMS BLVD WEST, #405, TAMPA FL 33647
Kevin Kennedy director
William G Laperch director 360 HAMILTON AVE, C/O ABOVENET INC, WHITE PLAINS NY 10601
Joshua Ananda Mills officer: General Counsel C/O KKR & CO. INC., 30 HUDSON YARDS, NEW YORK NY 10001
Camilla A. Harris officer: Principal Accounting Officer 8020 PARK LANE, DALLAS TX 75231
Andrew Power officer: Chief Financial Officer FOUR EMBARCADERO CENTER, SUITE 3200, SAN FRANCISCO CA 94111
Michael A Coke director TERRENO REALTY CORPORATION, 101 MONTGOMERY STREET, SUITE 200, SAN FRANCISCO CA 94104
Matt Mercier officer: SVP, Finance and Accounting FOUR EMBARCADERO CENTER, SAN FRANCISCO CA 94111