Experience Co (ASX:EXP) Operating Income : A$-2.6 Mil (TTM As of Dec. 2023)

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What is Experience Co Operating Income?

Experience Co's Operating Income for the six months ended in Dec. 2023 was A$-0.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was A$-2.6 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Experience Co's Operating Income for the six months ended in Dec. 2023 was A$-0.5 Mil. Experience Co's Revenue for the six months ended in Dec. 2023 was A$62.7 Mil. Therefore, Experience Co's Operating Margin % for the quarter that ended in Dec. 2023 was -0.84%.

Experience Co's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Experience Co's annualized ROC % for the quarter that ended in Dec. 2023 was -0.47%. Experience Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -1.31%.

Experience Co Operating Income Historical Data

The historical data trend for Experience Co'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.

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Experience Co Operating Income Chart

Experience Co Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Operating Income

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4.00

-5.71

-12.90

-17.93

-3.54

Experience Co Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial													-11.17	-6.76	-1.45	-2.09	-0.53

Experience Co 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 semi-annually data reported by the company within the most recent 12 months, which was A$-2.6 Mil.

Experience Co (ASX:EXP) Operating Income Explanation

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

Experience Co'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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-1.054 * ( 1 - 13.98% )	/	( (192.411	+	195.096)	/ 2 )
=	-0.9066508	/	193.7535
=	-0.47 %

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	))
=	190.796	-	10.893	-	( 8.587	-	max(0, 32.5	-	19.992	+	8.587	))
=	192.411

	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	))
=	194.999	-	13.25	-	( 10.695	-	max(0, 36.416	-	23.069	+	10.695	))
=	195.096

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

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

Experience Co'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: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-1.464	/	( ( (112.549 + max(-17.17, 0))	+	(110.688 + max(-19.368, 0)) )	/	2 )
=	-1.464	/	( ( 112.549	+	110.688 )	/	2 )
=	-1.464	/	111.6185
=	-1.31 %

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)
=	(3.191	+	4.87	+	2.923)	-	(10.893	+	0	+	17.261)
=	-17.17

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(4.441	+	5.648	+	2.285)	-	(13.25	+	0	+	18.492)
=	-19.368

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

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

Experience Co'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 )
	=	-0.527	/	62.699
	=	-0.84 %

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.

Experience Co Operating Income Related Terms

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Experience Co (ASX:EXP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Experience Co Ltd (ASX:EXP) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

89 York Street, Level 5, Sydney, NSW, AUS, 2000

Website

https://www.experienceco.com

Experience Co Ltd operates as an adventure tourism company that engages in the provision of adventure tourism and leisure experiences to the public. The firm offers sky-diving, island day trips, reef tours, rainforest tours, and multi-day experiences in Australia and New Zealand. The company has two reportable segment, namely Skydiving, which comprises tandem skydive and related products, with ancillary aircraft maintenance activities; Adventure Experiences, which Includes Reef Unlimited with reef-based dive and snorkel experiences and rainforest tours operating out of Cairns and Port Douglas. The company generates the majority of its revenue from the Adventure Experiences segment. Geographically the company generates the majority from Australia.