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Priority Technology Holdings (Priority Technology Holdings) Operating Income : $92.7 Mil (TTM As of Mar. 2024)


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What is Priority Technology Holdings Operating Income?

Priority Technology Holdings's Operating Income for the three months ended in Mar. 2024 was $28.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $92.7 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Priority Technology Holdings's Operating Income for the three months ended in Mar. 2024 was $28.0 Mil. Priority Technology Holdings's Revenue for the three months ended in Mar. 2024 was $205.7 Mil. Therefore, Priority Technology Holdings's Operating Margin % for the quarter that ended in Mar. 2024 was 13.62%.

Good Sign:

Priority Technology Holdings Inc operating margin is expanding. Margin expansion is usually a good sign.

Priority Technology Holdings's 5-Year average Growth Rate for Operating Margin % was 30.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Priority Technology Holdings's annualized ROC % for the quarter that ended in Mar. 2024 was 4.99%. Priority Technology Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 222.10%.


Priority Technology Holdings Operating Income Historical Data

The historical data trend for Priority Technology 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.

Priority Technology Holdings Operating Income Chart

Priority Technology Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only 7.18 20.86 33.09 56.17 81.52

Priority Technology 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.85 19.13 23.51 22.04 28.02

Priority Technology 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 $92.7 Mil.

* 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.


Priority Technology Holdings  (NAS:PRTH) Operating Income Explanation

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

Priority Technology 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 )
=112.092 * ( 1 - 33.21% )/( (1509.191 + 1492.263)/ 2 )
=74.8662468/1500.727
=4.99 %

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))
=1615.337 - 76.92 - ( 39.604 - max(0, 852.068 - 881.294+39.604))
=1509.191

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))
=1609.957 - 85.294 - ( 34.29 - max(0, 849.946 - 882.346+34.29))
=1492.263

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

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

Priority Technology 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 )
=106.22/( ( (44.68 + max(-5.1339999999998, 0)) + (48.12 + max(2.8500000000001, 0)) )/ 2 )
=106.22/( ( 44.68 + 50.97 )/ 2 )
=106.22/47.825
=222.10 %

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)
=(58.551 + 0 + 781.671) - (76.92 + 3.934 + 764.502)
=-5.1339999999998

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(67.137 + 0 + 778.947) - (85.294 + 4.09 + 753.85)
=2.8500000000001

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 %:

Priority Technology 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 )
=28.023/205.719
=13.62 %

* 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.

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.


Priority Technology Holdings Operating Income Related Terms

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Priority Technology Holdings (Priority Technology Holdings) Business Description

Traded in Other Exchanges
Address
2001 Westside Parkway, Suite 155, Alpharetta, GA, USA, 30004
Priority Technology Holdings Inc is a provider of merchant acquiring and commercial payment solutions to small and medium businesses enterprises in the United States. The company has three reportable segments which are SMB Payments, B2B Payments and Enterprise Payments. SMB Payments segment which generates majority revenue provides full-service acquiring and payment-enabled solutions for B2C transactions, leveraging priority's proprietary software platform, distributed through ISO: B2B Payments segment provides AP automation solutions to corporations, software partners and industry FIs: and Enterprise Payments segment provides embedded payment and treasury solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments.
Executives
Sean Kiewiet officer: Chief Technology Officer 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Stephen W Hipp director C/O PRIORITY TECHNOLOGY HOLDINGS, INC., 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Thomas Charles Priore director, 10 percent owner, officer: President, CEO and Chairman 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Marc A Crisafulli director C/O GTECH HOLDINGS CORPORATION, 55 TECHNOLOGY WAY, WEST GREENWICH RI 02817
Tim O'leary officer: Chief Financial Officer C/O PRIORITY TECHNOLOGY HOLDINGS, INC., 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Rajiv Kumar officer: Chief Accounting Officer C/O PRIORITY TECHNOLOGY HOLDINGS, INC., 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
David Faupel officer: Chief Marketing Officer C/O PRIORITY TECHNOLOGY HOLDINGS, INC., 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Ranjana Ram officer: Head of M&A Strategic Initiati C/O PRIORITY TECHNOLOGY HOLDINGS, INC., 2001 WESTSIDE PARKWAY, ALPHARETTA GA 30004
Anthony Martin Bonventre officer: EVP Operations C/O PRIORITY TECHNOLOGY HOLDINGS, INC., 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Marietta Davis director C/O SHARPSPRING, 550 SW 2ND AVENUE, GAINESVILLE FL 32601
Michael Passilla director 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Pamela A Tefft officer: Corporate Controller and Chief 11720 AMBER PARK DRIVE, SUITE 600, ALPHARETTA GA 30004
Bradley J Miller officer: General Counsel and CRO C/O UNITED COMMUNITY BANKS, INC., P.O. BOX 398, BLAIRSVILLE GA 30514
Priority Incentive Equity Holdings, Llc director, 10 percent owner, officer: President, CEO and Chairman 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004
Priore 2019 Grat Thomas 10 percent owner 2001 WESTSIDE PARKWAY, SUITE 155, ALPHARETTA GA 30004