Heritage Global (Heritage Global) Operating Income : $13.26 Mil (TTM As of Dec. 2023)

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What is Heritage Global Operating Income?

Heritage Global's Operating Income for the three months ended in Dec. 2023 was $4.17 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $13.26 Mil.

Warning Sign:

Heritage Global Inc has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Heritage Global's Operating Income for the three months ended in Dec. 2023 was $4.17 Mil. Heritage Global's Revenue for the three months ended in Dec. 2023 was $15.28 Mil. Therefore, Heritage Global's Operating Margin % for the quarter that ended in Dec. 2023 was 27.29%.

Good Sign:

Heritage Global Inc operating margin is expanding. Margin expansion is usually a good sign.

Heritage Global's 5-Year average Growth Rate for Operating Margin % was 4.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Heritage Global's annualized ROC % for the quarter that ended in Dec. 2023 was 31.97%. Heritage Global's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 420.30%.

Heritage Global Operating Income Historical Data

The historical data trend for Heritage Global'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.

Heritage Global Operating Income Chart

Heritage Global Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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2.25

2.26

2.49

4.14

13.26

Heritage Global 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															2.13	3.52	2.80	2.78	4.17

Heritage Global 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 $13.26 Mil.

Heritage Global (NAS:HGBL) Operating Income Explanation

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

Heritage Global'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 )
=	16.684 * ( 1 - -9.74% )	/	( (54.646	+	59.895)	/ 2 )
=	18.3090216	/	57.2705
=	31.97 %

where

	Invested Capital		(Q: Sep. 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	))
=	84.438	-	15.992	-	( 15.578	-	max(0, 20.078	-	33.878	+	15.578	))
=	54.646

	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	))
=	83.168	-	11.715	-	( 12.279	-	max(0, 14.734	-	26.292	+	12.279	))
=	59.895

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

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

Heritage Global'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 )
=	18.22	/	( ( (4.426 + max(-7.976, 0))	+	(4.244 + max(-4.78, 0)) )	/	2 )
=	18.22	/	( ( 4.426	+	4.244 )	/	2 )
=	18.22	/	4.335
=	420.30 %

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)
=	(2.889	+	4.446	+	0.681)	-	(15.992	+	0	+	-3.5527136788005E-15)
=	-7.976

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.91	+	5.074	+	0.448)	-	(11.715	+	0.497	+	0)
=	-4.78

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 %:

Heritage Global'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 )
	=	4.171	/	15.284
	=	27.29 %

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.

Heritage Global Operating Income Related Terms

Thank you for viewing the detailed overview of Heritage Global's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Heritage Global (Heritage Global) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Heritage Global Inc (NAS:HGBL) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

LGC:Germany

Address

12625 High Bluff Drive, Suite 305, San Diego, CA, USA, 92130

Website

https://www.hginc.com

Heritage Global Inc values and monetizes industrial and financial assets by providing acquisition, disposition, valuation, and lending services for surplus and distressed assets. It aids in facilitating the economy by diverting useful industrial assets from landfills and operating a supply chain by overseeing the post-sale account activity of financial assets. The group operates in four segments namely Auction and Liquidation; Refurbishment and Resale; Brokerage and Specialty Lending. It generates maximum revenue from the Auction and Liquidation segment. The Auction and Liquidation segment, through HGP, operates as a global full-service auction, appraisal, and asset advisory firm, including the acquisition of turnkey manufacturing facilities and used industrial machinery and equipment.

Executives

Nicholas Kirk Dove	officer: President, Industrial Assets	12509 EL CAMINO REAL, UNIT B, SAN DIEGO CA 92130
Samuel L Shimer	director	C/O HERITAGE GLOBAL INC., 12625 HIGH BLUFF DRIVE, SUITE 305, SAN DIEGO CA 92130
Ross Dove	officer: President of Subsidiary	330 HATCH DRIVE, FOSTER CITY CA 94404
David Van Ludwig	officer: President of subsidiary	10 SUNSET HILLS PROFESSIONAL CENTRE, EDWARDSVILLE IL 62025
Michael Hexner	director	200 BRANNAN STREET, #332, SAN FRANCISCO CA 94107
Topline Capital Partners, Lp	10 percent owner	544 EUCLID STREET, SANTA MONICA CA 90402
Topline Capital Management, Llc	other: See Explanation in Footnotes	544 EUCLID STREET, SANTA MONICA CA 90402
William L Burnham	director	INDUCTIVE CAPITAL LP, 9855 DOUBLE R BLVD, STE 125, RENO NV 89521
James Edward Sklar	officer: EVP, Gen. Counsel & Secretary	31500 NORTHWESTERN HWY., SUITE 105, FARMINGTON HILLS MI 48334
Kelly S Sharpe	director	5094 NORTHLAWN DR., SAN JOSE CA 95130
Barbara A Sinsley	director	2502 KENNETH ST., MARRIETA GA 30066
Shirley Cho	director	12227 VALLEYHEART DRIVE, STUDIO CITY CA 91604
Brian J. Cobb	officer: VP of Finance and Controller	12625 HIGH BLUFF DRIVE, SUITE 305, SAN DIEGO CA 92130
Allan C Silber	officer: President	C/O COUNSEL CORPORATION, 700 - 1 TORONTO ST., TORONTO A6 M5C 2V6
Mcbirney Collin	other: See Explanation in Footnotes	544 EUCLID STREET, SANTA MONICA CA 90402