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ICZOOM Group (ICZOOM Group) Operating Income : $1.1 Mil (TTM As of Jun. 2023)


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What is ICZOOM Group Operating Income?

ICZOOM Group's Operating Income for the six months ended in Jun. 2023 was $0.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was $1.1 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. ICZOOM Group's Operating Income for the six months ended in Jun. 2023 was $0.3 Mil. ICZOOM Group's Revenue for the six months ended in Jun. 2023 was $94.2 Mil. Therefore, ICZOOM Group's Operating Margin % for the quarter that ended in Jun. 2023 was 0.27%.

ICZOOM Group'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. ICZOOM Group's annualized ROC % for the quarter that ended in Jun. 2023 was 1.32%. ICZOOM Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 was 11.02%.


ICZOOM Group Operating Income Historical Data

The historical data trend for ICZOOM Group'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.

ICZOOM Group Operating Income Chart

ICZOOM Group Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23
Operating Income
0.81 1.08 3.65 3.73 1.10

ICZOOM Group Semi-Annual Data
Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
Operating Income Get a 7-Day Free Trial Premium Member Only 1.64 2.00 1.74 0.85 0.25

ICZOOM Group 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 Jun. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was $1.1 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.


ICZOOM Group  (NAS:IZM) Operating Income Explanation

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

ICZOOM Group's annualized ROC % for the quarter that ended in Jun. 2023 is calculated as:

ROC % (Q: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2022 ) + Invested Capital (Q: Jun. 2023 ))/ count )
=0.504 * ( 1 - 24.33% )/( (26.831 + 31.028)/ 2 )
=0.3813768/28.9295
=1.32 %

where

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

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

ICZOOM Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2022  Q: Jun. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2.844/( ( (0.708 + max(21.915, 0)) + (0.989 + max(28.013, 0)) )/ 2 )
=2.844/( ( 22.623 + 29.002 )/ 2 )
=2.844/25.8125
=11.02 %

where Working Capital is:

Working Capital(Q: Dec. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(83.124 + 0.031 + 6.122) - (64.554 + 2.808 + 0)
=21.915

Working Capital(Q: Jun. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(76.69 + 0.834 + 8.199) - (56.038 + 1.671 + 0.0010000000000048)
=28.013

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2023) EBIT data.

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

ICZOOM Group's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2023 )/Revenue (Q: Jun. 2023 )
=0.252/94.198
=0.27 %

* 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.


ICZOOM Group Operating Income Related Terms

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ICZOOM Group (ICZOOM Group) Business Description

Traded in Other Exchanges
N/A
Address
No. 7018 Cai Tian Road, Room 3801, Building A, Sunhope e·METRO, Futian District, Guangdong, Shenzhen, CHN, 518000
ICZOOM Group Inc is engaged in the sale of electronic component products to customers in China. These products are used by small and medium-sized enterprises (SMEs) in the consumer electronic industry, Internet of Things (IoT), automotive electronics, and industrial control segment. In addition to the sales of electronic component products, also provides services to customers such as temporary warehousing, logistic and shipping, and customs clearance and charges them additional service commission fees. The company earns maximum revenue from sale of electronic components.