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Graphic Packaging Holding Co's Operating Income for the three months ended in Mar. 2024 was $294 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $1,197 Mil.
Operating Margin % is calculated as Operating Income divided by its Revenue. Graphic Packaging Holding Co's Operating Income for the three months ended in Mar. 2024 was $294 Mil. Graphic Packaging Holding Co's Revenue for the three months ended in Mar. 2024 was $2,259 Mil. Therefore, Graphic Packaging Holding Co's Operating Margin % for the quarter that ended in Mar. 2024 was 13.01%.
Good Sign:
Graphic Packaging Holding Co operating margin is expanding. Margin expansion is usually a good sign.
Graphic Packaging Holding Co's 5-Year average Growth Rate for Operating Margin % was 8.80% per year.
Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Graphic Packaging Holding Co's annualized ROC % for the quarter that ended in Mar. 2024 was 9.20%. Graphic Packaging Holding Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 19.01%.
The historical data trend for Graphic Packaging Holding 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.
Graphic Packaging Holding Co Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Operating Income | Get a 7-Day Free Trial | 572.00 | 585.00 | 545.00 | 1,037.00 | 1,248.00 |
Graphic Packaging Holding Co 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 | 344.00 | 286.00 | 315.00 | 302.00 | 294.00 |
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 $1,197 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.
Graphic Packaging Holding Co (NYSE:GPK) Operating Income Explanation
1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Graphic Packaging Holding Co'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 ) |
= | 1176 * ( 1 - 24.31% ) | / | ( (9572 | + | 9787) | / 2 ) |
= | 890.1144 | / | 9679.5 | |||
= | 9.20 % |
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 | )) |
= | 11175 | - | 1441 | - | ( 162 | - | max(0, 2589 | - | 2845 | + | 162 | )) |
= | 9572 |
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 | )) |
= | 11349 | - | 1426 | - | ( 136 | - | max(0, 2366 | - | 2923 | + | 136 | )) |
= | 9787 |
Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.
2. Joel Greenblatt's definition of Return on Capital:
Graphic Packaging Holding Co'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 ) |
= | 1108 | / | ( ( (4992 + max(801, 0)) | + | (4685 + max(1177, 0)) ) | / | 2 ) |
= | 1108 | / | ( ( 5793 | + | 5862 ) | / | 2 ) |
= | 1108 | / | 5827.5 | ||||
= | 19.01 % |
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) |
= | (716 | + | 1754 | + | 94) | - | (1441 | + | 30 | + | 292) |
= | 801 |
Working Capital | (Q: Mar. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (878 | + | 1702 | + | 207) | - | (1426 | + | 0 | + | 184) |
= | 1177 |
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 %:
Graphic Packaging Holding Co'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 ) |
= | 294 | / | 2259 | |
= | 13.01 % |
* 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.
Thank you for viewing the detailed overview of Graphic Packaging Holding Co's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.
Stephen R. Scherger | officer: SVP, Consumer Packaging Div. | 3901 SULGRAVE ROAD, RICHMOND VA 23221 |
Lynn A Wentworth | director | CINCINNATI BELL INC, P O BOX 2301, CINCINNATI OH 45201 |
Michael James Farrell | officer: EVP, Mills Division | 1500 RIVEREDGE PARKWAY, SUITE 100, ATLANTA GA 30328 |
Jean Francois Roche | officer: SVP and President, EMEA | 1500 RIVEREDGE PARKWAY, SUITE 100, AT GA 30328 |
Elizabeth Spence | officer: EVP, Human Resources | 1500 RIVEREDGE PARKWAY, N.W., SUITE 100, ATLANTA GA 30328 |
Aziz Aghili | director | 5706 KIRKRIDGE TRAIL, ROCHESTER HILLS MI 48306 |
Margie Kay Bidlingmaier | officer: EVP, President, Americas Busi | 1500 RIVEREDGE PARKWAY, SUITE 100, ATLANTA GA 30328 |
Mary K Rhinehart | director | 821 17TH STREET, DENVER CO 80202 |
Joseph P Yost | officer: SVP, Supply Chain | 814 LIVINGSTON COURT, MARIETTA GA 30067 |
Larry M Venturelli | director | 2000 M-63N, BENTON HARBOR MI 49022 |
Charles D Lischer | officer: SVP & CAO | 2500 WINDY RIDGE PARKWAY, SUITE 700, ATLANTA GA 30339 |
Stacey J. Panayiotou | officer: EVP, Human Resources | 9200 W. 108TH CIRCLE, WESTMINSTER CO 80021 |
Robert Hagemann | director | 3 GIRALDA FARMS, MADISON NJ 07940 |
Laurie Brlas | director | C/O ALBEMARLE CORPORATION, 4250 CONGRESS ST STE 900, CHARLOTTE NC 28209 |
Dean A Scarborough | director | 150 N. ORANGE GROVE BLVD, PASADENA CA 91103 |
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