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Strike Company (TSE:6196) Operating Income : 円6,882 Mil (TTM As of Mar. 2024)


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What is Strike Company Operating Income?

Strike Company's Operating Income for the three months ended in Mar. 2024 was 円2,360 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was 円6,882 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Strike Company's Operating Income for the three months ended in Mar. 2024 was 円2,360 Mil. Strike Company's Revenue for the three months ended in Mar. 2024 was 円5,554 Mil. Therefore, Strike Company's Operating Margin % for the quarter that ended in Mar. 2024 was 42.49%.

Good Sign:

Strike Company Ltd operating margin is expanding. Margin expansion is usually a good sign.

Strike Company's 5-Year average Growth Rate for Operating Margin % was 1.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Strike Company's annualized ROC % for the quarter that ended in Mar. 2024 was 157.22%. Strike Company's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 834.51%.


Strike Company Operating Income Historical Data

The historical data trend for Strike Company'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.

Strike Company Operating Income Chart

Strike Company Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Sep22
Operating Income
Get a 7-Day Free Trial 1,150.59 1,352.98 1,886.98 2,981.42 4,224.40

Strike Company Quarterly Data
Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 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 1,467.07 921.28 2,254.99 1,345.86 2,360.19

Strike Company 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 円6,882 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.


Strike Company  (TSE:6196) Operating Income Explanation

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

Strike Company'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 )
=9440.74 * ( 1 - 31.94% )/( (4374.791 + 3799.143)/ 2 )
=6425.367644/4086.967
=157.22 %

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))
=16573.192 - 653.642 - ( 12996.234 - max(0, 1890.919 - 13435.678+12996.234))
=4374.791

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))
=20079.375 - 3106.373 - ( 16420.322 - max(0, 3850.468 - 17024.327+16420.322))
=3799.143

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

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

Strike Company'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 )
=9440.74/( ( (1148.818 + max(-1451.475, 0)) + (1113.762 + max(-3246.463, 0)) )/ 2 )
=9440.74/( ( 1148.818 + 1113.762 )/ 2 )
=9440.74/1131.29
=834.51 %

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)
=(245.234 + 0 + 194.21) - (653.642 + 0 + 1237.277)
=-1451.475

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(443.417 + 0 + 160.588) - (3106.373 + 0 + 744.095)
=-3246.463

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 %:

Strike Company'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 )
=2360.185/5554.331
=42.49 %

* 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.


Strike Company Operating Income Related Terms

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Strike Company (TSE:6196) Business Description

Traded in Other Exchanges
N/A
Address
Rokubancho SK Building 5F, 3 Rokubancho, Chiyoda-ku, Tokyo, JPN, 102-0085
Strike Company Ltd is a Japan-based company mainly engaged in mergers and acquisitions (M&A) brokerage business. It primarily offers M&A intermediary advice, M&A mediation management, corporate value evaluation, corporate value improvement and financial consulting, due diligence work, corporate restoration support, corporate evaluation services and consulting services and various other related services.

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