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ELK-Desa Resources Bhd (XKLS:5228) Operating Income : RM123.0 Mil (TTM As of Dec. 2023)


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What is ELK-Desa Resources Bhd Operating Income?

ELK-Desa Resources Bhd's Operating Income for the three months ended in Dec. 2023 was RM30.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was RM123.0 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. ELK-Desa Resources Bhd's Operating Income for the three months ended in Dec. 2023 was RM30.2 Mil. ELK-Desa Resources Bhd's Revenue for the three months ended in Dec. 2023 was RM42.8 Mil. Therefore, ELK-Desa Resources Bhd's Operating Margin % for the quarter that ended in Dec. 2023 was 70.50%.

Warning Sign:

ELK-Desa Resources Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -1.5%.

ELK-Desa Resources Bhd's 5-Year average Growth Rate for Operating Margin % was -1.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. ELK-Desa Resources Bhd's annualized ROC % for the quarter that ended in Dec. 2023 was 13.14%. ELK-Desa Resources Bhd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 58.46%.


ELK-Desa Resources Bhd Operating Income Historical Data

The historical data trend for ELK-Desa Resources Bhd'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.

ELK-Desa Resources Bhd Operating Income Chart

ELK-Desa Resources Bhd Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 98.03 117.54 107.32 96.36 118.29

ELK-Desa Resources Bhd Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 27.77 36.92 28.10 27.85 30.15

ELK-Desa Resources Bhd 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 quarterly data reported by the company within the most recent 12 months, which was RM123.0 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.


ELK-Desa Resources Bhd  (XKLS:5228) Operating Income Explanation

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

ELK-Desa Resources Bhd'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: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=120.604 * ( 1 - 26.1% )/( (666.3 + 690.238)/ 2 )
=89.126356/678.269
=13.14 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

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

ELK-Desa Resources Bhd'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: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=120.604/( ( (37.935 + max(169.16, 0)) + (37.891 + max(167.586, 0)) )/ 2 )
=120.604/( ( 207.095 + 205.477 )/ 2 )
=120.604/206.286
=58.46 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(16.145 + 18.376 + 146.88) - (12.241 + 0 + 0)
=169.16

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(16.618 + 17.717 + 149.498) - (16.247 + 0 + 0)
=167.586

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

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

ELK-Desa Resources Bhd'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 )
=30.151/42.766
=70.50 %

* 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.


ELK-Desa Resources Bhd Operating Income Related Terms

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ELK-Desa Resources Bhd (XKLS:5228) Business Description

Traded in Other Exchanges
N/A
Address
No. 15 - 17, Jalan Brunei Utara, Off Jalan Pudu, Kuala Lumpur, SGR, MYS, 55100
ELK-Desa Resources Bhd is a Malaysian company investment holding company. The company's business segments are Hire-purchase financing and other integrated services and the Trading of furniture. The Hire-purchase financing and other integrated services segment is involved in the business of hire purchase financing for used motor vehicles as well as selling general insurance policies as an insurance agent and the Trading of furniture segment is involved in the business of trading, export, wholesaling and manufacturing of furniture. The company earns the majority of its revenue from hire-purchase financing.

ELK-Desa Resources Bhd (XKLS:5228) Headlines

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