HomeCo Daily Needs REIT (ASX:HDN) Operating Income : A$240.4 Mil (TTM As of Dec. 2023)

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What is HomeCo Daily Needs REIT Operating Income?

HomeCo Daily Needs REIT's Operating Income for the six months ended in Dec. 2023 was A$120.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was A$240.4 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. HomeCo Daily Needs REIT's Operating Income for the six months ended in Dec. 2023 was A$120.5 Mil. HomeCo Daily Needs REIT's Revenue for the six months ended in Dec. 2023 was A$178.7 Mil. Therefore, HomeCo Daily Needs REIT's Operating Margin % for the quarter that ended in Dec. 2023 was 67.43%.

HomeCo Daily Needs REIT'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. HomeCo Daily Needs REIT's annualized ROC % for the quarter that ended in Dec. 2023 was 5.12%. HomeCo Daily Needs REIT's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 133.51%.

HomeCo Daily Needs REIT Operating Income Historical Data

The historical data trend for HomeCo Daily Needs REIT'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.

HomeCo Daily Needs REIT Operating Income Chart

HomeCo Daily Needs REIT Annual Data

Trend

Jun22

Jun23

Operating Income

132.80

234.40

HomeCo Daily Needs REIT Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	35.10	97.70	114.50	119.90	120.50

HomeCo Daily Needs REIT 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$240.4 Mil.

HomeCo Daily Needs REIT (ASX:HDN) Operating Income Explanation

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

HomeCo Daily Needs REIT'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 )
=	241 * ( 1 - 0% )	/	( (4773.4	+	4639)	/ 2 )
=	241	/	4706.2
=	5.12 %

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	))
=	4825.4	-	105.8	-	( 16.2	-	max(0, 106	-	52.2	+	16.2	))
=	4773.4

	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	))
=	4714.2	-	60.6	-	( 14.6	-	max(0, 103.9	-	193.1	+	14.6	))
=	4639

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:

HomeCo Daily Needs REIT'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 )
=	51.2	/	( ( (0 + max(-72.6, 0))	+	(0 + max(76.7, 0)) )	/	2 )
=	51.2	/	( ( 0	+	76.7 )	/	2 )
=	51.2	/	38.35
=	133.51 %

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)
=	(3.4	+	0	+	29.8)	-	(105.8	+	0	+	0)
=	-72.6

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(6.1	+	0	+	174.3)	-	(60.6	+	0	+	43.1)
=	76.7

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 %:

HomeCo Daily Needs REIT'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 )
	=	120.5	/	178.7
	=	67.43 %

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.

HomeCo Daily Needs REIT Operating Income Related Terms

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HomeCo Daily Needs REIT (ASX:HDN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » HomeCo Daily Needs REIT (ASX:HDN) » Definitions » Operating Income

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Traded in Other Exchanges

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Address

1 Macquarie Place, Level 7, Gateway, Sydney, NSW, AUS, 2000

Website

https://www.home-co.com.au

HomeCo Daily Needs REIT, or HomeCo, is an externally managed property trust run by HMC Capital which also runs HealthCo Healthcare and Wellness REIT and unlisted funds. HomeCo targets 50% of assets in neighbourhood malls, 30% large-format, and 20% in health and services. After merging with Aventus Retail REIT in 2022, HomeCo is overweight large-format (just under half its portfolio) and underweight neighbourhood (one third of the portfolio), with health and services slightly below target. The plan is to move back to the target via redevelopment and tenant remixing, and potentially acquisitions. HomeCo seeks tenant leases before commencing developments, so we expect development opportunities will arise gradually, as population growth adds demand in HomeCo's catchments.

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