Chartwell Retirement Residences (Chartwell Retirement Residences) Operating Income : $55.8 Mil (TTM As of Mar. 2024)

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What is Chartwell Retirement Residences Operating Income?

Chartwell Retirement Residences's Operating Income for the three months ended in Mar. 2024 was $17.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $55.8 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Chartwell Retirement Residences's Operating Income for the three months ended in Mar. 2024 was $17.8 Mil. Chartwell Retirement Residences's Revenue for the three months ended in Mar. 2024 was $144.7 Mil. Therefore, Chartwell Retirement Residences's Operating Margin % for the quarter that ended in Mar. 2024 was 12.28%.

Warning Sign:

Chartwell Retirement Residences operating margin has been in a 5-year decline. The average rate of decline per year is -10.4%.

Chartwell Retirement Residences's 5-Year average Growth Rate for Operating Margin % was -10.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Chartwell Retirement Residences's annualized ROC % for the quarter that ended in Mar. 2024 was 4.30%. Chartwell Retirement Residences's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 3.02%.

Chartwell Retirement Residences Operating Income Historical Data

The historical data trend for Chartwell Retirement Residences'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.

Chartwell Retirement Residences Operating Income Chart

Chartwell Retirement Residences Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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73.75

61.39

39.26

26.74

41.54

Chartwell Retirement Residences 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															3.36	8.53	14.17	15.37	17.76

Chartwell Retirement Residences 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 $55.8 Mil.

Chartwell Retirement Residences (OTCPK:CWSRF) Operating Income Explanation

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

Chartwell Retirement Residences'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 )
=	71.056 * ( 1 - -55.33% )	/	( (2576.12	+	2552.303)	/ 2 )
=	110.3712848	/	2564.2115
=	4.30 %

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	))
=	2410.611	-	145.189	-	( 18.35	-	max(0, 567.062	-	256.364	+	18.35	))
=	2576.12

	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	))
=	2377.453	-	139.785	-	( 18.127	-	max(0, 564.125	-	249.49	+	18.127	))
=	2552.303

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

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

Chartwell Retirement Residences'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 )
=	60.736	/	( ( (2028.177 + max(-67.246, 0))	+	(1999.832 + max(-38.492, 0)) )	/	2 )
=	60.736	/	( ( 2028.177	+	1999.832 )	/	2 )
=	60.736	/	2014.0045
=	3.02 %

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)
=	(1.055	+	0	+	221.476)	-	(145.189	+	0	+	144.588)
=	-67.246

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.071	+	0	+	214.959)	-	(139.785	+	0	+	114.737)
=	-38.492

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 %:

Chartwell Retirement Residences'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 )
	=	17.764	/	144.687
	=	12.28 %

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.

Chartwell Retirement Residences Operating Income Related Terms

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Chartwell Retirement Residences (Chartwell Retirement Residences) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Chartwell Retirement Residences (OTCPK:CWSRF) » Definitions » Operating Income

Comparable Companies

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6QD:Germany CSH.UN:Canada

Address

7070 Derrycrest Drive, Mississauga, ON, CAN, L5W 0G5

Website

https://www.chartwell.com

Chartwell Retirement Residences is an unincorporated open-ended real estate trust that is engaged in the ownership, operations, and management of retirement residences and long-term care homes in Canada. The company has two operating segments; The Retirement Operations segment includes retirement residences that the company owns and operates in Canada. The retirement residences provide services to residents at rates set by Chartwell based on the services provided and market conditions, and The Long-Term Care Operations segment consists of long-term care homes in Ontario, one of which has an adjacent retirement residence and Admission and funding for the long-term care homes is overseen by local government agencies in each province.