TE Connectivity (TE Connectivity) Operating Income : $2,853 Mil (TTM As of Mar. 2024)

View and export this data going back to 2007. Start your Free Trial

What is TE Connectivity Operating Income?

TE Connectivity's Operating Income for the three months ended in Mar. 2024 was $735 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $2,853 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. TE Connectivity's Operating Income for the three months ended in Mar. 2024 was $735 Mil. TE Connectivity's Revenue for the three months ended in Mar. 2024 was $3,967 Mil. Therefore, TE Connectivity's Operating Margin % for the quarter that ended in Mar. 2024 was 18.53%.

Good Sign:

TE Connectivity Ltd operating margin is expanding. Margin expansion is usually a good sign.

TE Connectivity's 5-Year average Growth Rate for Operating Margin % was 0.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. TE Connectivity's annualized ROC % for the quarter that ended in Mar. 2024 was 12.78%. TE Connectivity's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 43.69%.

TE Connectivity Operating Income Historical Data

The historical data trend for TE Connectivity'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.

TE Connectivity Operating Income Chart

TE Connectivity Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

Get a 7-Day Free Trial

2,260.00

1,730.00

2,698.00

2,942.00

2,677.00

TE Connectivity Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															664.00	692.00	699.00	727.00	735.00

TE Connectivity 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. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,853 Mil.

TE Connectivity (NYSE:TEL) Operating Income Explanation

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

TE Connectivity's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	2940 * ( 1 - 21.25% )	/	( (18503	+	17720)	/ 2 )
=	2315.25	/	18111.5
=	12.78 %

where

	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	))
=	23071	-	3398	-	( 1170	-	max(0, 4011	-	7441	+	1170	))
=	18503

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	22824	-	3928	-	( 1176	-	max(0, 5163	-	7504	+	1176	))
=	17720

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

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

TE Connectivity's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	2824	/	( ( (3854 + max(2873, 0))	+	(3799 + max(2400, 0)) )	/	2 )
=	2824	/	( ( 6727	+	6199 )	/	2 )
=	2824	/	6463
=	43.69 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2828	+	2783	+	660)	-	(3398	+	0	+	0)
=	2873

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2874	+	2744	+	710)	-	(3928	+	0	+	0)
=	2400

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

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

TE Connectivity's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	735	/	3967
	=	18.53 %

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.

TE Connectivity Operating Income Related Terms

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

TE Connectivity (TE Connectivity) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » TE Connectivity Ltd (NYSE:TEL) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

Muhlenstrasse 26, Schaffhausen, CHE, CH-8200

Website

https://www.te.com

TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.

Executives

Terrence R Curtin	director, officer: EVP & Chief Financial Officer	C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312
John S Jenkins	officer: EVP & General Counsel	1050 WESTLAKES DRIVE, BERWYN PA 19312
Heath A Mitts	officer: EVP & Chief Financial Officer	1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Malavika Sagar	officer: SVP, Chief Human Resources Off	1050 WESTLAKES DRIVE, BERWYN PA 19312
Jean-pierre Clamadieu	director	1050 WESTLAKES DRIVE, BERWYN PA 19312
Shadrak W Kroeger	officer: Pres., Communications Solution	1050 WESTLAKES DRIVE, BERWYN PA 19312
Abhijit Y Talwalkar	director	ONE AMD PLACE, PO BOX 3453, SUNNYVALE CA 94088
Tim Murphy	officer: SVP & CHRO	1050 WESTLAKES DRIVE, BERWYN PA 19312
Thomas J Lynch	director, officer: Chief Executive Officer	7 LAKEVIEW DRIVE, NEWTOWN PA 19840
Syaru Shirley Lin	director
Robert J Ott	officer: Sr VP & Controller	C/O TYCO ELECTRONICS LTD, 1050 WESTLAKES DRIVE, BERWYN PA 19312
Steven T Merkt	officer: President, Transportation Sol.	1050 WESTLAKES DRIVE, BERWYN PA 19312
Daniel J Phelan	director	C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312
Aaron Kyle Stucki	officer: Pres. Communications Solutions	1050 WESTLAKES DRIVE, BERWYN PA 19312
Eric Resch	director, officer: SVP and Tax Officer	C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312