Dada Nexus (Dada Nexus) Operating Income : $-157 Mil (TTM As of Mar. 2024)

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What is Dada Nexus Operating Income?

Dada Nexus's Operating Income for the three months ended in Mar. 2024 was $-51 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $-157 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Dada Nexus's Operating Income for the three months ended in Mar. 2024 was $-51 Mil. Dada Nexus's Revenue for the three months ended in Mar. 2024 was $340 Mil. Therefore, Dada Nexus's Operating Margin % for the quarter that ended in Mar. 2024 was -14.88%.

Good Sign:

Dada Nexus Ltd operating margin is expanding. Margin expansion is usually a good sign.

Dada Nexus's 5-Year average Growth Rate for Operating Margin % was 32.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Dada Nexus's annualized ROC % for the quarter that ended in Mar. 2024 was -66.24%. Dada Nexus's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -6,045.78%.

Dada Nexus Operating Income Historical Data

The historical data trend for Dada Nexus'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.

Dada Nexus Operating Income Chart

Dada Nexus Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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-249.47

-269.77

-404.87

-304.02

-161.19

Dada Nexus 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															-56.07	-27.50	-28.84	-50.02	-50.66

Dada Nexus 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 $-157 Mil.

Dada Nexus (NAS:DADA) Operating Income Explanation

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

Dada Nexus'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 )
=	-202.652 * ( 1 - 0.62% )	/	( (345.571	+	262.539)	/ 2 )
=	-201.3955576	/	304.055
=	-66.24 %

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	))
=	1060.738	-	231.799	-	( 483.368	-	max(0, 280.044	-	849.976	+	483.368	))
=	345.571

	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	))
=	951.417	-	218.1	-	( 470.778	-	max(0, 219.511	-	758.266	+	470.778	))
=	262.539

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

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

Dada Nexus'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 )
=	-183.308	/	( ( (3.463 + max(-146.909, 0))	+	(2.601 + max(-85.977, 0)) )	/	2 )
=	-183.308	/	( ( 3.463	+	2.601 )	/	2 )
=	-183.308	/	3.032
=	-6,045.78 %

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)
=	(54.168	+	1.298	+	75.608)	-	(231.799	+	39.23	+	6.954)
=	-146.909

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(52.705	+	1.187	+	78.231)	-	(218.1	+	0	+	0)
=	-85.977

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 %:

Dada Nexus'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 )
	=	-50.663	/	340.451
	=	-14.88 %

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.

Dada Nexus Operating Income Related Terms

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Dada Nexus (Dada Nexus) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Dada Nexus Ltd (NAS:DADA) » Definitions » Operating Income

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Traded in Other Exchanges

D0A:Germany

Address

No.1088 Yangshupu Road, 22nd Floor, Oriental Fisherman’s Wharf, Yangpu District, Shanghai, CHN, 200082

Website

https://ir.imdada.cn

Dada Nexus is a leading crowdsourced delivery service in China. The company has two core businesses, Dada Now, which is an on-demand delivery platform that provides last-mile and intracity services; and JD Daojia, or JDDJ, which is an online on-demand retail platform that connects consumers to merchants with its delivery capabilities. As of 2022, Dada Now accounted for 34% of revenue while JDDJ accounted for the rest. JDDJ and Dada Nexus merged in 2016, where JD.com received 47.4% ownership of the merged entity in exchange for its JDDJ business. As of June 2023, JD.com and Walmart Inc own 53.9% and 9.3% of Dada Nexus, respectively. Dada Nexus competes with other logistics companies such as SF Intra-City, with Didi in its delivery business, and with Meituan in its on-demand retail segment.