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Subaru Enterprise Co (TSE:9632) Operating Income : 円4,782 Mil (TTM As of Jul. 2024)


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What is Subaru Enterprise Co Operating Income?

Subaru Enterprise Co's Operating Income for the three months ended in Jul. 2024 was 円972 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2024 was 円4,782 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Subaru Enterprise Co's Operating Income for the three months ended in Jul. 2024 was 円972 Mil. Subaru Enterprise Co's Revenue for the three months ended in Jul. 2024 was 円6,886 Mil. Therefore, Subaru Enterprise Co's Operating Margin % for the quarter that ended in Jul. 2024 was 14.11%.

Good Sign:

Subaru Enterprise Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

Subaru Enterprise Co's 5-Year average Growth Rate for Operating Margin % was 6.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Subaru Enterprise Co's annualized ROC % for the quarter that ended in Jul. 2024 was 11.93%. Subaru Enterprise Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2024 was 21.99%.


Subaru Enterprise Co Operating Income Historical Data

The historical data trend for Subaru Enterprise Co'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.

Subaru Enterprise Co Operating Income Chart

Subaru Enterprise Co Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4,090.60 4,048.20 4,207.36 5,092.10 4,900.04

Subaru Enterprise Co Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
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 1,008.92 1,301.95 956.33 1,551.55 971.88

Subaru Enterprise Co 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 Jul. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was 円4,782 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.


Subaru Enterprise Co  (TSE:9632) Operating Income Explanation

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

Subaru Enterprise Co's annualized ROC % for the quarter that ended in Jul. 2024 is calculated as:

ROC % (Q: Jul. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Apr. 2024 ) + Invested Capital (Q: Jul. 2024 ))/ count )
=3887.512 * ( 1 - 33.55% )/( (21269.766 + 22037.74)/ 2 )
=2583.251724/21653.753
=11.93 %

where

Invested Capital(Q: Apr. 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))
=38809.17 - 1997.871 - ( 15541.533 - max(0, 3623.307 - 19766.676+15541.533))
=21269.766

Invested Capital(Q: Jul. 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))
=39420.351 - 2362.585 - ( 15020.026 - max(0, 3561.096 - 20335.086+15020.026))
=22037.74

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

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

Subaru Enterprise Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jul. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Apr. 2024  Q: Jul. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=3887.512/( ( (16461.367 + max(601.836, 0)) + (16540.495 + max(1753.964, 0)) )/ 2 )
=3887.512/( ( 17063.203 + 18294.459 )/ 2 )
=3887.512/17678.831
=21.99 %

where Working Capital is:

Working Capital(Q: Apr. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3490.704 + 550.266 + 184.173) - (1997.871 + 0 + 1625.436)
=601.836

Working Capital(Q: Jul. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4549.15 + 541.948 + 223.962) - (2362.585 + 0 + 1198.511)
=1753.964

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jul. 2024) EBIT data.

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

Subaru Enterprise Co's Operating Margin % for the quarter that ended in Jul. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jul. 2024 )/Revenue (Q: Jul. 2024 )
=971.878/6885.884
=14.11 %

* 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.


Subaru Enterprise Co Operating Income Related Terms

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Subaru Enterprise Co Business Description

Traded in Other Exchanges
N/A
Address
No. 10 No. 1 Yurakucho, Chiyoda-ku, Tokyo, JPN
Subaru Enterprise Co Ltd is a Japan-based company. Its business is divided into Road related business, Leisure business and Real estate business. Road related business offers maintenance and cleaning of road and road incidental facilities, contracting repair work, contract service operation of toll roads etc., photovoltaic power generation business. Leisure business offers film entertainment, food and beverage, and merchandising business, marina management business. The real estate management department conducts management of various real estate for rent, real estate sales and real estate brokerage.

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