National Vision Holdings (National Vision Holdings) Operating Income : $27 Mil (TTM As of Mar. 2024)

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What is National Vision Holdings Operating Income?

National Vision Holdings's Operating Income for the three months ended in Mar. 2024 was $25 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $27 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. National Vision Holdings's Operating Income for the three months ended in Mar. 2024 was $25 Mil. National Vision Holdings's Revenue for the three months ended in Mar. 2024 was $543 Mil. Therefore, National Vision Holdings's Operating Margin % for the quarter that ended in Mar. 2024 was 4.58%.

Warning Sign:

National Vision Holdings Inc operating margin has been in a 5-year decline. The average rate of decline per year is -13.3%.

National Vision Holdings's 5-Year average Growth Rate for Operating Margin % was -13.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. National Vision Holdings's annualized ROC % for the quarter that ended in Mar. 2024 was 2.94%. National Vision Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 12.70%.

National Vision Holdings Operating Income Historical Data

The historical data trend for National Vision Holdings'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.

National Vision Holdings Operating Income Chart

National Vision Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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82.47

109.01

179.36

67.06

35.59

National Vision Holdings 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															29.44	8.62	6.24	-12.97	24.87

National Vision Holdings 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 $27 Mil.

National Vision Holdings (NAS:EYE) Operating Income Explanation

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

National Vision Holdings'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 )
=	99.464 * ( 1 - 39.27% )	/	( (2054.404	+	2047.807)	/ 2 )
=	60.4044872	/	2051.1055
=	2.94 %

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	))
=	2172.511	-	119.137	-	( 149.896	-	max(0, 397.7	-	396.67	+	149.896	))
=	2054.404

	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	))
=	2155.368	-	103.655	-	( 150.05	-	max(0, 375.006	-	378.912	+	150.05	))
=	2047.807

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

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

National Vision Holdings'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 )
=	97.64	/	( ( (769.142 + max(-70.485, 0))	+	(768.099 + max(-64.619, 0)) )	/	2 )
=	97.64	/	( ( 769.142	+	768.099 )	/	2 )
=	97.64	/	768.6205
=	12.70 %

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)
=	(71.423	+	119.908	+	40.012)	-	(119.137	+	110.984	+	71.707)
=	-70.485

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(59.178	+	118.564	+	36.025)	-	(103.655	+	109.45	+	65.281)
=	-64.619

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 %:

National Vision Holdings'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 )
	=	24.866	/	542.523
	=	4.58 %

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.

National Vision Holdings Operating Income Related Terms

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

National Vision Holdings (National Vision Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » National Vision Holdings Inc (NAS:EYE) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

7NV:Germany

Address

2435 Commerce Avenue, Building 2200, Duluth, GA, USA, 30096

Website

https://www.nationalvision.com

National Vision Holdings Inc is an optical retailer in the U.S. Its product portfolio includes eyeglasses and sunglasses, contact lenses, accessories, and other products. The company has two operating segments; Owned and Host segment includes company-owned brands America's Best and Eyeglass World, In America's Best stores, vision care services are provided by optometrists or by independent professional corporations and Host operating consist of Military and Fred Meyer which provide eye exams by independent optometrists, and the Legacy segment manages the operations of, and supplies inventory and lab processing services to Legacy retail Vision Centers. It earns a majority of its revenue from the Owned and Host segment.

Executives

D Randolph Peeler	director, 10 percent owner	CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701
Thomas V Taylor	director	2233 LAKE PARK DRIVE, STE. 400, SMYRNA GA 30080
Ravi Acharya	officer: SVP, Chief Technology Officer	C/O NATIONAL VISION HOLDINGS, INC., 2435 COMMERCE AVE., BUILDING 2200, DULUTH GA 30096
Virginia A Hepner	director	415 EAST PACES FERRY ROAD, SUITE 200, ATLANTA GA 30305
L Reade Fahs	director, officer: Chief Executive Officer
Patrick R. Moore	officer: SVP, Chief Financial Officer	C/O NATIONAL VISION HOLDINGS, INC., 2435 COMMERCE AVENUE, BLDG. 2200, DULUTH GA 30096
Jared Brandman	officer: SVP, GC and Secretary	C/O NATIONAL VISION HOLDINGS, INC., 2435 COMMERCE AVENUE BLDG. 2200, DULUTH GA 30096-4980
David M Tehle	director	100 MISSION RIDGE, GOODLETTSVILLE TN 37072
Joseph Vandette	officer: SVP, Chief Marketing Officer	C/O NATIONAL VISION HOLDINGS, INC., 2435 COMMERCE AVE., BUILDING 2200, DULUTH GA 30096
Melissa Rasmussen	officer: SVP, Chief Accounting Officer	NATIONAL VISION HOLDINGS, INC., 2435 COMMERCE AVENUE BLDG 2200, DULUTH GA 30095
Roger F. Francis	officer: SVP, Chief Stores Officer	C/O NATIONAL VISION HOLDINGS, INC., 2435 COMMERCE AVE., BUILDING 2200, DULUTH GA 30096
Jose Armario	director	MCDONALD'S CORPORATION, 2915 JORIE BOULEVARD, OAK BROOK IL 60523
Susan S Johnson	director	303 PEACHTREE STREET, NE, ATLANTA GA 30308
Naomi Kelman	director	C/O NATIONAL VISION HOLDINGS, INC., 2435 COMMERCE AVE., BUILDING 2200, DULUTH GA 30096
Joan Blackwood	officer: SVP, Chief Marketing Officer	C/O NATIONAL VISION HOLDINGS, INC., 2435 COMMERCE AVE., BUILDING 2200, DULUTH GA 30096