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Companhia Deneamento Basico Do Estado Deo Paulo (Companhia Deneamento Basico Do Estado Deo Paulo) Operating Income : $1,033 Mil (TTM As of Sep. 2023)


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What is Companhia Deneamento Basico Do Estado Deo Paulo Operating Income?

Companhia Deneamento Basico Do Estado Deo Paulo's Operating Income for the three months ended in Sep. 2023 was $345 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $1,033 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Companhia Deneamento Basico Do Estado Deo Paulo's Operating Income for the three months ended in Sep. 2023 was $345 Mil. Companhia Deneamento Basico Do Estado Deo Paulo's Revenue for the three months ended in Sep. 2023 was $1,307 Mil. Therefore, Companhia Deneamento Basico Do Estado Deo Paulo's Operating Margin % for the quarter that ended in Sep. 2023 was 26.37%.

Warning Sign:

Companhia De Saneamento Basico Do Estado De Sao Paulo operating margin has been in a 5-year decline. The average rate of decline per year is -7.7%.

Companhia Deneamento Basico Do Estado Deo Paulo's 5-Year average Growth Rate for Operating Margin % was -7.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Companhia Deneamento Basico Do Estado Deo Paulo's annualized ROC % for the quarter that ended in Sep. 2023 was 7.91%. Companhia Deneamento Basico Do Estado Deo Paulo's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 1,710.19%.


Companhia Deneamento Basico Do Estado Deo Paulo Operating Income Historical Data

The historical data trend for Companhia Deneamento Basico Do Estado Deo Paulo'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.

Companhia Deneamento Basico Do Estado Deo Paulo Operating Income Chart

Companhia Deneamento Basico Do Estado Deo Paulo Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,331.35 1,390.65 870.46 720.70 880.89

Companhia Deneamento Basico Do Estado Deo Paulo Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 288.69 204.02 266.13 218.56 344.61

Companhia Deneamento Basico Do Estado Deo Paulo 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 Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,033 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.


Companhia Deneamento Basico Do Estado Deo Paulo  (NYSE:SBS) Operating Income Explanation

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

Companhia Deneamento Basico Do Estado Deo Paulo's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

ROC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=1378.448 * ( 1 - 33.76% )/( (11653.553 + 11425.308)/ 2 )
=913.0839552/11539.4305
=7.91 %

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))
=11837.077 - 222.21 - ( 464.872 - max(0, 1328.878 - 1290.192+464.872))
=11653.553

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))
=11942.797 - 505.206 - ( 602.275 - max(0, 1429.375 - 1441.658+602.275))
=11425.308

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

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

Companhia Deneamento Basico Do Estado Deo Paulo's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2023  Q: Sep. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1378.448/( ( (76.48 + max(-67.945, 0)) + (84.724 + max(-153.316, 0)) )/ 2 )
=1378.448/( ( 76.48 + 84.724 )/ 2 )
=1378.448/80.602
=1,710.19 %

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)
=(680.041 + 24.85 + 24.704) - (222.21 + 7.397 + 567.933)
=-67.945

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(687.191 + 24.421 + 27.433) - (505.206 + 0 + 387.155)
=-153.316

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2023) EBIT data.

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

Companhia Deneamento Basico Do Estado Deo Paulo's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2023 )/Revenue (Q: Sep. 2023 )
=344.612/1306.669
=26.37 %

* 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.


Companhia Deneamento Basico Do Estado Deo Paulo Operating Income Related Terms

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Companhia Deneamento Basico Do Estado Deo Paulo (Companhia Deneamento Basico Do Estado Deo Paulo) Business Description

Traded in Other Exchanges
Address
Rua Costa Carvalho, 300, Sao Paulo, SP, BRA, 05429-900
Companhia De Saneamento Basico Do Estado De Sao Paulo is Brazilian water and waste management company. SABESP is one of the largest waste management companies in the world, and the state of Sao Paulo is the company's majority stakeholder. The company generates revenue through exclusive long-term agreements with municipal governments. It is not uncommon for SABESP to serve the vast majority of the market. The company operates in a single segment, which is Sanitation services.

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