Kinross Gold (Kinross Gold) Operating Income : $774 Mil (TTM As of Dec. 2023)

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What is Kinross Gold Operating Income?

Kinross Gold's Operating Income for the three months ended in Dec. 2023 was $183 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $774 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Kinross Gold's Operating Income for the three months ended in Dec. 2023 was $183 Mil. Kinross Gold's Revenue for the three months ended in Dec. 2023 was $1,116 Mil. Therefore, Kinross Gold's Operating Margin % for the quarter that ended in Dec. 2023 was 16.39%.

Warning Sign:

Kinross Gold Corp operating margin has been in a 5-year decline. The average rate of decline per year is -10.4%.

Kinross Gold's 5-Year average Growth Rate for Operating Margin % was -10.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Kinross Gold's annualized ROC % for the quarter that ended in Dec. 2023 was 3.22%. Kinross Gold's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 7.87%.

Kinross Gold Operating Income Historical Data

The historical data trend for Kinross Gold'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.

Kinross Gold Operating Income Chart

Kinross Gold Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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960.10

1,876.40

61.50

92.20

764.40

Kinross Gold 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															-168.30	143.90	226.20	220.50	182.90

Kinross Gold 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 $774 Mil.

Kinross Gold (NYSE:KGC) Operating Income Explanation

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

Kinross Gold'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 )
=	731.6 * ( 1 - 57.72% )	/	( (9618.6	+	9566.5)	/ 2 )
=	309.32048	/	9592.55
=	3.22 %

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	))
=	10593.1	-	509.6	-	( 464.9	-	max(0, 732.3	-	1978.5	+	464.9	))
=	9618.6

	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	))
=	10543.3	-	624.4	-	( 352.4	-	max(0, 685.5	-	1802.3	+	352.4	))
=	9566.5

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

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

Kinross Gold'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 )
=	680.8	/	( ( (7894.8 + max(725.6, 0))	+	(8002.7 + max(667.9, 0)) )	/	2 )
=	680.8	/	( ( 8620.4	+	8670.6 )	/	2 )
=	680.8	/	8645.5
=	7.87 %

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)
=	(0	+	1202.3	+	210.3)	-	(509.6	+	0	+	177.4)
=	725.6

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	1153	+	190.3)	-	(624.4	+	0	+	51)
=	667.9

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 %:

Kinross Gold'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 )
	=	182.9	/	1115.7
	=	16.39 %

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.

Kinross Gold Operating Income Related Terms

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Kinross Gold (Kinross Gold) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Kinross Gold Corp (NYSE:KGC) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

0R2D:UK KIN2:Germany KIN2:Germany KIN2:Germany K:Canada KGC:Argentina

Address

25 York Street, 17th Floor, Toronto, ON, CAN, M5J 2V5

Website

https://www.kinross.com

Kinross Gold is a Canada-based gold producer, producing roughly 2 million gold equivalent ounces in 2022. The company had about a decade of gold reserves at the end of 2022. It operates mines in the Americas and West Africa after selling its low-cost Russian operations in 2022 in response to the invasion of Ukraine. The company has historically used acquisitions to fuel expansion into new regions and production growth. In 2022, Kinross purchased the Great Bear project in Canada, which, if developed, could produce an average of more than 500,000 ounces of gold per year for at least a decade.