Industrias BachocoB de CV (Industrias BachocoB de CV) Operating Income : $367 Mil (TTM As of Sep. 2023)

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What is Industrias BachocoB de CV Operating Income?

Industrias BachocoB de CV's Operating Income for the three months ended in Sep. 2023 was $127 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $367 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Industrias BachocoB de CV's Operating Income for the three months ended in Sep. 2023 was $127 Mil. Industrias BachocoB de CV's Revenue for the three months ended in Sep. 2023 was $1,370 Mil. Therefore, Industrias BachocoB de CV's Operating Margin % for the quarter that ended in Sep. 2023 was 9.25%.

Good Sign:

Industrias Bachoco SAB de CV operating margin is expanding. Margin expansion is usually a good sign.

Industrias BachocoB de CV's 5-Year average Growth Rate for Operating Margin % was 0.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Industrias BachocoB de CV's annualized ROC % for the quarter that ended in Sep. 2023 was 14.49%. Industrias BachocoB de CV's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 27.81%.

Industrias BachocoB de CV Operating Income Historical Data

The historical data trend for Industrias BachocoB de CV'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.

Industrias BachocoB de CV Operating Income Chart

Industrias BachocoB de CV Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Operating Income

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188.85

210.85

211.67

287.21

430.13

Industrias BachocoB de CV Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Operating Income	Get a 7-Day Free Trial															56.24	14.44	91.28	134.14	126.71

Industrias BachocoB de CV 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 Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $367 Mil.

Industrias BachocoB de CV (OTCPK:IDBHF) Operating Income Explanation

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

Industrias BachocoB de CV's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	506.828 * ( 1 - 25.99% )	/	( (2448.509	+	2727.928)	/ 2 )
=	375.1034028	/	2588.2185
=	14.49 %

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	))
=	4243.334	-	591.353	-	( 1203.472	-	max(0, 695.717	-	2328.333	+	1203.472	))
=	2448.509

	Invested Capital		(Q: Sep. 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	))
=	4474.761	-	646.694	-	( 1100.139	-	max(0, 816.085	-	2384.611	+	1100.139	))
=	2727.928

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

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

Industrias BachocoB de CV's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	595.424	/	( ( (1478.368 + max(533.508, 0))	+	(1632.928 + max(637.778, 0)) )	/	2 )
=	595.424	/	( ( 2011.876	+	2270.706 )	/	2 )
=	595.424	/	2141.291
=	27.81 %

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)
=	(330.415	+	647.507	+	146.939)	-	(591.353	+	0	+	0)
=	533.508

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(382.068	+	746.775	+	155.629)	-	(646.694	+	0	+	1.1368683772162E-13)
=	637.778

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2023) EBIT data.

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

Industrias BachocoB de CV's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	126.707	/	1369.507
	=	9.25 %

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.

Industrias BachocoB de CV Operating Income Related Terms

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Industrias BachocoB de CV (Industrias BachocoB de CV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Industrias Bachoco SAB de CV (OTCPK:IDBHF) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

BACHOCOB:Mexico

Address

Avenida Tecnologico 401, Ciudad Industrial, Celaya, GTO, MEX, 38010

Website

https://www.bachoco.com.mx

Industrias Bachoco SAB de CV produces, processes, markets, and sells poultry (chicken and eggs) in both Mexico and the United States. Additionally, it sells feed, swine, beef, turkey, and other products on a smaller scale. The company's poultry business begins with purchasing infant birds and raising the birds to maturity. Industrias Bachoco operates its own feed mills to produce balanced feed for internal use, and to sell to third parties. Several production facilities and distribution centers are located throughout Mexico and the United States to minimize transportation costs, and the company sells through wholesalers, supermarkets, retail, and other niche marketing channels. It generates the majority of its revenue from the Poultry segment.