Altra Industrial Motion (Altra Industrial Motion) Operating Income : $259 Mil (TTM As of Dec. 2022)

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What is Altra Industrial Motion Operating Income?

Altra Industrial Motion's Operating Income for the three months ended in Dec. 2022 was $53 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2022 was $259 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Altra Industrial Motion's Operating Income for the three months ended in Dec. 2022 was $53 Mil. Altra Industrial Motion's Revenue for the three months ended in Dec. 2022 was $469 Mil. Therefore, Altra Industrial Motion's Operating Margin % for the quarter that ended in Dec. 2022 was 11.27%.

Good Sign:

Altra Industrial Motion Corp operating margin is expanding. Margin expansion is usually a good sign.

Altra Industrial Motion's 5-Year average Growth Rate for Operating Margin % was 9.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Altra Industrial Motion's annualized ROC % for the quarter that ended in Dec. 2022 was 4.53%. Altra Industrial Motion's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2022 was 33.10%.

Altra Industrial Motion Operating Income Historical Data

The historical data trend for Altra Industrial Motion'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.

Altra Industrial Motion Operating Income Chart

Altra Industrial Motion Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Operating Income

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91.10

238.20

232.40

242.80

258.80

Altra Industrial Motion Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Operating Income	Get a 7-Day Free Trial															48.00	74.10	66.40	65.40	52.90

Altra Industrial Motion 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. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $259 Mil.

Altra Industrial Motion (NAS:AIMC) Operating Income Explanation

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

Altra Industrial Motion's annualized ROC % for the quarter that ended in Dec. 2022 is calculated as:

	ROC % (Q: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2022 )	+	Invested Capital (Q: Dec. 2022 ))	/ count )
=	211.6 * ( 1 - 33.63% )	/	( (3083.4	+	3123.2)	/ 2 )
=	140.43892	/	3103.3
=	4.53 %

where

	Invested Capital		(Q: Sep. 2022 )
=	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	))
=	3617.9	-	336.3	-	( 198.2	-	max(0, 367	-	840.9	+	198.2	))
=	3083.4

	Invested Capital		(Q: Dec. 2022 )
=	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	))
=	3676.6	-	344.5	-	( 208.9	-	max(0, 377.3	-	836.4	+	208.9	))
=	3123.2

Note: The Operating Income data used here is four times the quarterly (Dec. 2022) data.

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

Altra Industrial Motion's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2022 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2022 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2022		Q: Dec. 2022
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	193.2	/	( ( (304.1 + max(272.6, 0))	+	(316.5 + max(274.1, 0)) )	/	2 )
=	193.2	/	( ( 576.7	+	590.6 )	/	2 )
=	193.2	/	583.65
=	33.10 %

where Working Capital is:

	Working Capital		(Q: Sep. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(245.7	+	323.6	+	39.6)	-	(336.3	+	0	+	0)
=	272.6

	Working Capital		(Q: Dec. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(244.6	+	338.9	+	35.1)	-	(344.5	+	0	+	0)
=	274.1

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2022) EBIT data.

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

Altra Industrial Motion's Operating Margin % for the quarter that ended in Dec. 2022 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2022 )	/	Revenue (Q: Dec. 2022 )
	=	52.9	/	469.4
	=	11.27 %

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.

Altra Industrial Motion Operating Income Related Terms

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

Altra Industrial Motion (Altra Industrial Motion) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Altra Industrial Motion Corp (NAS:AIMC) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

300 Granite Street, Suite 201, Braintree, MA, USA, 02184

Website

https://www.altramotion.com

Altra Industrial Motion Corp is a United States-based company that designs, manufactures, and sells a wide range of electromechanical power transmission motion control. The company operates through two business segments based on product types and end markets served: the power transmission technologies segment and the automation and specialty segment. The company's product portfolio consists of products such as clutches, brakes, gears, and motion controllers and braking systems, which are used in heavy industrial applications, energy markets, medical, packaging, automation, robotic, and other industries. The company earns majority of its revenue in North America ( primarily the United States).

Executives

La Vonda Williams	director	201 MONTGOMERY STREET, #751, JERSEY CITY NJ 07302
Haughey Nicole Parent	director	UNITED TECHNOLOGIES CORPORATION, ONE FINANCIAL PLAZA, HARTFORD CT 06101
Margot Hoffman	director	6368 CHAMPIONS DRIVE, WESTERVILLE OH 43082
Thomas W Swidarski	director	5995 MAYFAIR RD, P O BOX 3077, NORTH CANTON OH 44720
Todd Patriacca	officer: EVP, CFO and Treasurer	C/O ALTRA INDUSTRIAL MOTION INC., 300 GRANITE STREET, BRAINTREE MA 02184
Glenn E. Deegan	officer: Chief Legal and HR Officer	C/O ALTRA INDUSTRIAL MOTION INC., 300 GRANITE STREET SUITE 201, BRAINTREE MA 02184
J Scott Hall	director	1200 ABERNATHY ROAD NE, SUITE 1200, ATLANTA GA 30328
Christian Storch	officer: Chief Financial Officer	C/O ALTRA INDUSTRIAL MOTION, 300 GRANITE STREET SUITE 201, BRAINTREE MA 02184
Woodward James H Jr	director	7140 OFFICE CIRCLE, EVANSVILLE IN 47716
Craig Schuele	officer: VP Mktg&Bus Dev (see Remarks)	C/O ALTRA INDUSTRIAL MOTION INC., 300 GRANITE STREET, BRAINTREE MA 02184
Carl R Christenson	officer: President and COO	C/O ALTRA INDUSTRIAL MOTION INC., 300 GRANITE STREET, BRAINTREE MA 02184
Lyle G. Ganske	director	C/O ALTRA INDUSTRIAL MOTION, INC., 300 GRANITE STREET SUITE 201, BRAINTREE MA 02184
Larry Mcpherson	director	C/O MEDICAL STAFFING NETWORK HOLDINGS, 901 YAMATO ROAD, SUITE 110, BOCA RATON FL 33431
Lipscomb S Michael	director	SIFCO INDUSTRIES, INC., 970 EAST 64TH STREET, CLEVELAND OH 44103
Patrick K Murphy	director	C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203