Gym Group (The) (LSE:GYM) Operating Income : £15.4 Mil (TTM As of Dec. 2023)

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What is Gym Group (The) Operating Income?

Gym Group (The)'s Operating Income for the six months ended in Dec. 2023 was £10.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was £15.4 Mil.

Warning Sign:

Gym Group (The) PLC has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Gym Group (The)'s Operating Income for the six months ended in Dec. 2023 was £10.3 Mil. Gym Group (The)'s Revenue for the six months ended in Dec. 2023 was £104.2 Mil. Therefore, Gym Group (The)'s Operating Margin % for the quarter that ended in Dec. 2023 was 9.88%.

Gym Group (The)'s 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Gym Group (The)'s annualized ROC % for the quarter that ended in Dec. 2023 was 3.55%. Gym Group (The)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 3.88%.

Gym Group (The) Operating Income Historical Data

The historical data trend for Gym Group (The)'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.

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Gym Group (The) Operating Income Chart

Gym Group (The) Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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21.58

-33.00

-26.90

10.00

15.40

Gym Group (The) Semi-Annual Data
	Dec13	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial															-7.60	3.40	6.60	5.10	10.30

Gym Group (The) 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 Dec. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was £15.4 Mil.

Gym Group (The) (LSE:GYM) Operating Income Explanation

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

Gym Group (The)'s annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	20.6 * ( 1 - -4.55% )	/	( (595.1	+	619.6)	/ 2 )
=	21.5373	/	607.35
=	3.55 %

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	))
=	578	-	35.3	-	( 5.1	-	max(0, 63.2	-	10.8	+	5.1	))
=	595.1

	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	))
=	571.5	-	11.2	-	( 1.5	-	max(0, 72.3	-	13	+	1.5	))
=	619.6

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

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

Gym Group (The)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	17.6	/	( ( (458.4 + max(-29.9, 0))	+	(449.8 + max(-41.3, 0)) )	/	2 )
=	17.6	/	( ( 458.4	+	449.8 )	/	2 )
=	17.6	/	454.1
=	3.88 %

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)
=	(4.9	+	0.8	+	0)	-	(35.3	+	0	+	0.3)
=	-29.9

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.7	+	0.7	+	0)	-	(11.2	+	0	+	32.5)
=	-41.3

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

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

Gym Group (The)'s Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	10.3	/	104.2
	=	9.88 %

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.

Gym Group (The) Operating Income Related Terms

Thank you for viewing the detailed overview of Gym Group (The)'s Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Gym Group (The) (LSE:GYM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Gym Group (The) PLC (LSE:GYM) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

GYYMF:USA GYMl:UK 4GY:Germany

Address

12-16 Addiscombe Road, 5th Floor, OneCroydon, Croydon, GBR, CR0 0XT

Website

https://www.tggplc.com

Gym Group (The) PLC provides low-cost, 24/7 health and fitness facilities across the United Kingdom. The company offers flexible no-contract gym memberships, and it also ensures that all its sites have easy-access parking or are close to transportation hubs. The facilities include a wide variety of equipment as well to deliver value-for-the-money for its members. It generates the majority of its revenue from Membership income.

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