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Team Health Holdings (Team Health Holdings) Operating Income : $243 Mil (TTM As of Sep. 2016)


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What is Team Health Holdings Operating Income?

Team Health Holdings's Operating Income for the three months ended in Sep. 2016 was $64 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2016 was $243 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Team Health Holdings's Operating Income for the three months ended in Sep. 2016 was $64 Mil. Team Health Holdings's Revenue for the three months ended in Sep. 2016 was $1,141 Mil. Therefore, Team Health Holdings's Operating Margin % for the quarter that ended in Sep. 2016 was 5.59%.

Team Health Holdings'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. Team Health Holdings's annualized ROC % for the quarter that ended in Sep. 2016 was 3.54%. Team Health Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 was 92.46%.


Team Health Holdings Operating Income Historical Data

The historical data trend for Team Health 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.

Team Health Holdings Operating Income Chart

Team Health Holdings Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Operating Income
Get a 7-Day Free Trial Premium Member Only 131.74 120.52 158.06 184.61 236.91

Team Health Holdings Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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 69.85 58.26 50.47 70.22 63.80

Team Health 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 Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $243 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.


Team Health Holdings  (NYSE:TMH) Operating Income Explanation

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

Team Health Holdings's annualized ROC % for the quarter that ended in Sep. 2016 is calculated as:

ROC % (Q: Sep. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2016 ) + Invested Capital (Q: Sep. 2016 ))/ count )
=255.184 * ( 1 - 49.18% )/( (3410.977 + 3914.498)/ 2 )
=129.6845088/3662.7375
=3.54 %

where

Invested Capital(Q: Jun. 2016 )
=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))
=4101.752 - 672.913 - ( 17.862 - max(0, 734.783 - 925.85+17.862))
=3410.977

Invested Capital(Q: Sep. 2016 )
=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))
=4470.575 - 686.7 - ( 16.896 - max(0, 1076.82 - 946.197+16.896))
=3914.498

Note: The Operating Income data used here is four times the quarterly (Sep. 2016) data.

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

Team Health Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2016 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2016  Q: Sep. 2016
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=255.184/( ( (86.727 + max(180.748, 0)) + (84.141 + max(200.401, 0)) )/ 2 )
=255.184/( ( 267.475 + 284.542 )/ 2 )
=255.184/276.0085
=92.46 %

where Working Capital is:

Working Capital(Q: Jun. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(787.169 + 0 + 66.492) - (672.913 + 0 + 0)
=180.748

Working Capital(Q: Sep. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(821.963 + 0 + 65.138) - (686.7 + 0 + -2.2737367544323E-13)
=200.401

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2016) EBIT data.

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

Team Health Holdings's Operating Margin % for the quarter that ended in Sep. 2016 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2016 )/Revenue (Q: Sep. 2016 )
=63.796/1141.494
=5.59 %

* 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.


Team Health Holdings Operating Income Related Terms

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Team Health Holdings (Team Health Holdings) Business Description

Traded in Other Exchanges
N/A
Address
Team Health Holdings Inc was founded in 1979. It is the suppliers of outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States, based upon revenues and patient visits. It serves approximately 3,400 civilian and military hospitals, clinics and physician groups in 47 states with a team of more than 18,000 affiliated healthcare professionals, including physicians, physician assistants, nurse practitioners and nurses. It recruits and contracts with healthcare professionals who then provide professional services within third-party healthcare facilities. It is a physician-founded organization with physician leadership throughout its business and since its inception in 1979; it provided outsourced services in hospital emergency departments, or EDs. It also provides comprehensive programs for hospital medicine, anesthesiology, pediatrics and other healthcare services, by providing permanent staffing that enables the management teams of hospitals and other healthcare facilities to outsource certain management, recruiting, hiring, payroll, billing and collection and benefits functions. The range of services that it provides to its clients include: recruiting, scheduling & credential coordination for clinical and non-clinical medical professionals; coding, billing & collection of fees for services provided by medical professionals; provision of experienced medical directors; administrative support services, such as payroll, professional liability insurance coverage, continuing medical education services & management training; risk & claims management services and standardized procedures. Healthcare facilities seek third-party physician staffing and administrative service providers that not only could improve department quality, productivity and patient satisfaction while reducing overall costs, but also offer a breadth of staffing and management services, billing & reimbursement expertise, a reputation for regulatory compliance, financial stability and a demonstrated ability to recruit & retain qualified physicians and technicians & nurses. It competes against local physician groups and self-operated hospital EDs. Its operations and relationships with healthcare providers such as hospitals are subject to increasing regulations by numerous federal, state and local governmental entities.
Executives
Jana Partners Llc director 767 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10153
Scott Ostfeld director 767 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10153
Kenneth H Paulus director 5420 FELTL ROAD, MINNETONKA MN 55343
James L Bierman director 9120 LOCKWOOD BOULEVARD, MECHANICSVILLE VA 23116
Glenn A. Davenport director TEAM HEALTH HOLDINGS, 1900 WINSTON ROAD, SUITE 300, KNOXVILLE TN 37919
Vicky B Gregg director 1 CAMERON HILL CIRCLE, CHATTANOOGA TN 37402
Edwin M Crawford director 3000 GALLERIA TOWER, STE 1000, BIRMINGHAM AL 35244
Michael D Snow director, officer: President and CEO 23 MAYMONT WAY, THE WOODLANDS TX 77382
Joseph L Herring director 210 CARNEGIE CENTER, PRINCETON NJ 08540
Greg Roth other: Consultant ONE PARK PLAZA, NASHVILLE TN 37203
Steven B Epstein director
Blackstone Holdings Iii Gp Management L.l.c. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Blackstone Holdings Iii Gp L.p. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Blackstone Management Associates Iv Llc 10 percent owner C/O THE BLACKSTONE GROUP, 345 PARK AVE, NEW YORK NY 10154
Blackstone Holdings Iii L.p. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154

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