Balwin Properties (JSE:BWN) Operating Income : R314 Mil (TTM As of Feb. 2024)

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What is Balwin Properties Operating Income?

Balwin Properties's Operating Income for the six months ended in Feb. 2024 was R85 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2024 was R314 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Balwin Properties's Operating Income for the six months ended in Feb. 2024 was R85 Mil. Balwin Properties's Revenue for the six months ended in Feb. 2024 was R1,171 Mil. Therefore, Balwin Properties's Operating Margin % for the quarter that ended in Feb. 2024 was 7.23%.

Warning Sign:

Balwin Properties Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.7%.

Balwin Properties's 5-Year average Growth Rate for Operating Margin % was -8.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Balwin Properties's annualized ROC % for the quarter that ended in Feb. 2024 was 1.42%. Balwin Properties's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2024 was 2.89%.

Balwin Properties Operating Income Historical Data

The historical data trend for Balwin Properties'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.

Balwin Properties Operating Income Chart

Balwin Properties Annual Data

Trend

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Operating Income

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547.90

452.74

496.80

567.38

313.88

Balwin Properties Semi-Annual Data
	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
Operating Income	Get a 7-Day Free Trial													339.97	229.13	338.25	229.28	84.60

Balwin Properties 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 Feb. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was R314 Mil.

Balwin Properties (JSE:BWN) Operating Income Explanation

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

Balwin Properties's annualized ROC % for the quarter that ended in Feb. 2024 is calculated as:

	ROC % (Q: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2023 )	+	Invested Capital (Q: Feb. 2024 ))	/ count )
=	169.194 * ( 1 - 40.14% )	/	( (7017.048	+	7224.067)	/ 2 )
=	101.2795284	/	7120.5575
=	1.42 %

where

	Invested Capital		(Q: Aug. 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	))
=	7644.141	-	184.46	-	( 442.633	-	max(0, 2087.674	-	6967.235	+	442.633	))
=	7017.048

	Invested Capital		(Q: Feb. 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	))
=	7630.347	-	116.694	-	( 289.586	-	max(0, 2159.523	-	6984.676	+	289.586	))
=	7224.067

Note: The Operating Income data used here is two times the semi-annual (Feb. 2024) data.

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

Balwin Properties's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Feb. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Aug. 2023		Q: Feb. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	195.518	/	( ( (377.19 + max(6286.239, 0))	+	(381.826 + max(6493.121, 0)) )	/	2 )
=	195.518	/	( ( 6663.429	+	6874.947 )	/	2 )
=	195.518	/	6769.188
=	2.89 %

where Working Capital is:

	Working Capital		(Q: Aug. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(231.202	+	6275.007	+	1.0860000000002)	-	(184.46	+	0	+	36.596)
=	6286.239

	Working Capital		(Q: Feb. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(349.709	+	6342.225	+	1.3159999999998)	-	(116.694	+	0	+	83.435)
=	6493.121

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Feb. 2024) EBIT data.

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

Balwin Properties's Operating Margin % for the quarter that ended in Feb. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	84.597	/	1170.678
	=	7.23 %

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.

Balwin Properties Operating Income Related Terms

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Balwin Properties (JSE:BWN) Business Description

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Traded in Other Exchanges

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Address

105 Corlett Drive, Melrose, Johannesburg, GT, ZAF, 2196

Website

https://www.balwin.co.za

Balwin Properties Ltd is South Africa's residential property developer of large-scale, sectional title estates with a focus on high quality, environmentally efficient and affordable apartments with an lifestyle offering for residents. The operating segments of the company are: Sale of apartments, Provision of services to residential estates, Bond commission, Residential and commercial property rentals and Balwin Foundation.