Omega Healthcare Investors (Omega Healthcare Investors) Operating Income : $489.0 Mil (TTM As of Dec. 2023)

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What is Omega Healthcare Investors Operating Income?

Omega Healthcare Investors's Operating Income for the three months ended in Dec. 2023 was $109.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $489.0 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Omega Healthcare Investors's Operating Income for the three months ended in Dec. 2023 was $109.0 Mil. Omega Healthcare Investors's Revenue for the three months ended in Dec. 2023 was $239.3 Mil. Therefore, Omega Healthcare Investors's Operating Margin % for the quarter that ended in Dec. 2023 was 45.54%.

Warning Sign:

Omega Healthcare Investors Inc operating margin has been in a 5-year decline. The average rate of decline per year is -4.5%.

Omega Healthcare Investors's 5-Year average Growth Rate for Operating Margin % was -4.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Omega Healthcare Investors's annualized ROC % for the quarter that ended in Dec. 2023 was 4.79%. Omega Healthcare Investors's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 3,104.03%.

Omega Healthcare Investors Operating Income Historical Data

The historical data trend for Omega Healthcare Investors'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.

Omega Healthcare Investors Operating Income Chart

Omega Healthcare Investors Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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554.35

452.26

566.17

392.28

488.97

Omega Healthcare Investors 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															-23.19	116.54	129.12	134.32	108.99

Omega Healthcare Investors 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 $489.0 Mil.

Omega Healthcare Investors (NYSE:OHI) Operating Income Explanation

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

Omega Healthcare Investors'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 )
=	435.952 * ( 1 - 6.73% )	/	( (8593.897	+	8386.797)	/ 2 )
=	406.6124304	/	8490.347
=	4.79 %

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	))
=	9425.313	-	276.711	-	( 554.705	-	max(0, 296.241	-	2209.933	+	554.705	))
=	8593.897

	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	))
=	9117.402	-	287.795	-	( 442.81	-	max(0, 308.192	-	2261.475	+	442.81	))
=	8386.797

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

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

Omega Healthcare Investors'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 )
=	485.004	/	( ( (0 + max(-6.3030000000003, 0))	+	(0 + max(31.25, 0)) )	/	2 )
=	485.004	/	( ( 0	+	31.25 )	/	2 )
=	485.004	/	15.625
=	3,104.03 %

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)
=	(199.666	+	0	+	70.742)	-	(276.711	+	0	+	0)
=	-6.3030000000003

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(223.418	+	0	+	95.627)	-	(287.795	+	0	+	0)
=	31.25

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 %:

Omega Healthcare Investors'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 )
	=	108.988	/	239.319
	=	45.54 %

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.

Omega Healthcare Investors Operating Income Related Terms

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Omega Healthcare Investors (Omega Healthcare Investors) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Omega Healthcare Investors Inc (NYSE:OHI) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

WX4:Germany WX4:Germany

Address

303 International Circle, Suite 200, Hunt Valley, MD, USA, 21030

Website

https://www.omegahealthcare.com

Omega Healthcare Investors Inc is a healthcare facility real estate investment trust that invests in the United States real estate markets. Omega's portfolio focuses on long-term healthcare facilities. The company maintains dual goals of increasing its returns to investors while also maintaining a high level of care for residents. Omega works to obtain contractual rent escalations under long-term leases, along with fixed-rate mortgage loans. The company considers merger and acquisition investment as a component of its operational growth strategy.

Executives

Gail D Makode	officer: Chief Legal Officer	ONE SOUND SHORE DR, SUITE 304, GREENWICH CT 06830
Kapila K Anand	director	C/O EXTENDED STAY AMERICA, INC., 11525 N. COMMUNITY HOUSE ROAD, SUITE 100, CHARLOTTE NC 28277
Neal Ballew	officer: Chief Accounting Officer	303 INTERNATIONAL CIRCLE, SUITE 200, HUNT VALLEY MD 21030
Burke W Whitman	director	13455 NOEL ROAD # 2000, DALLAS TX 75240
Lisa Egbuonu-davis	director	C/O OMEGA HEALTHCARE INVESTORS, INC., 303 INTERNATIONAL CIRCLE, SUITE 200, HUNT VALLEY MD 21030
Steven J Insoft	officer: Chief Corp Development Officer
Daniel J Booth	officer: Chief Operating Officer	9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21093
Robert O Stephenson	officer: Chief Financial Officer	C/O OMEGA HEALTHCARE INVESTORS, 9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21093
C Taylor Pickett	director, officer: Chief Executive Officer	C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Kevin J Jacobs	director	7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Michael Ritz	officer: Chief Accounting Officer	9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21131
Craig R Callen	director	7902 WESTPARK DR, C/O SUNRISE ASSISTED LIVING, MCLEAN VA 22102
Ben W Perks	director
Bernard J Korman	director	OMEGA HEALTHCARE INVESTORS INC, ANN ARBOR MI 48108
Craig M Bernfield	director	303 WEST MADISON STREET, SUITE 2400, CHICAGO IL 60606