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Reynolds Consumer Products's Operating Income for the three months ended in Mar. 2024 was $90 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $550 Mil.
Operating Margin % is calculated as Operating Income divided by its Revenue. Reynolds Consumer Products's Operating Income for the three months ended in Mar. 2024 was $90 Mil. Reynolds Consumer Products's Revenue for the three months ended in Mar. 2024 was $833 Mil. Therefore, Reynolds Consumer Products's Operating Margin % for the quarter that ended in Mar. 2024 was 10.80%.
Warning Sign:
Reynolds Consumer Products Inc operating margin has been in a 5-year decline. The average rate of decline per year is -7%.
Reynolds Consumer Products's 5-Year average Growth Rate for Operating Margin % was -7.00% per year.
Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Reynolds Consumer Products's annualized ROC % for the quarter that ended in Mar. 2024 was 6.39%. Reynolds Consumer Products's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 28.87%.
The historical data trend for Reynolds Consumer Products'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.
Reynolds Consumer Products Annual Data | |||||||||||||||||
Trend | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||
Operating Income | Get a 7-Day Free Trial | 541.00 | 617.00 | 491.00 | 436.00 | 512.00 |
Reynolds Consumer Products 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 | 52.00 | 120.00 | 134.00 | 206.00 | 90.00 |
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 $550 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.
Reynolds Consumer Products (NAS:REYN) Operating Income Explanation
1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Reynolds Consumer Products'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 ) |
= | 360 * ( 1 - 24.62% ) | / | ( (4274 | + | 4224) | / 2 ) |
= | 271.368 | / | 4249 | |||
= | 6.39 % |
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 | )) |
= | 4780 | - | 391 | - | ( 115 | - | max(0, 478 | - | 1041 | + | 115 | )) |
= | 4274 |
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 | )) |
= | 4858 | - | 499 | - | ( 135 | - | max(0, 517 | - | 1091 | + | 135 | )) |
= | 4224 |
Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.
2. Joel Greenblatt's definition of Return on Capital:
Reynolds Consumer Products'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 ) |
= | 360 | / | ( ( (788 + max(450, 0)) | + | (814 + max(442, 0)) ) | / | 2 ) |
= | 360 | / | ( ( 1238 | + | 1256 ) | / | 2 ) |
= | 360 | / | 1247 | ||||
= | 28.87 % |
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) |
= | (347 | + | 524 | + | 41) | - | (391 | + | 0 | + | 71) |
= | 450 |
Working Capital | (Q: Mar. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (330 | + | 570 | + | 41) | - | (499 | + | 0 | + | 0) |
= | 442 |
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 %:
Reynolds Consumer Products'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 ) |
= | 90 | / | 833 | |
= | 10.80 % |
* 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 Reynolds Consumer Products's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.
Christine Montenegro Mcgrath | director | C/O REYNOLDS CONSUMER PRODUCTS INC., 1900 W. FIELD COURT, LAKE FOREST IL 60045 |
Chris Mayrhofer | officer: Vice President and Controller | C/O REYNOLDS CONSUMER PRODUCTS, 1900 W. FIELD CT., LAKE FOREST IL 60045 |
Christopher Corey | officer: President, Presto Products | C/O REYNOLDS CONSUMER PRODUCTS, INC., 1900 W. FIELD COURT, LAKE FOREST IL 60045 |
Mark D. Swartzberg | officer: VP Investor Relations | C/O REYNOLDS CONSUMER PRODUCTS INC., 1900 W. FIELD COURT, LAKE FOREST IL 60045 |
Nathan D. Lowe | officer: VP, Fin. Planning & Analysis | C/O REYNOLDS CONSUMER PRODUCTS INC., 1900 W. FIELD COURT, LAKE FOREST IL 60045 |
V Lance Mitchell | director, officer: President and CEO | 1900 W. FIELD COURT, LAKE FOREST IL 60045 |
Michael E. Graham | officer: Chief Financial Officer | REYNOLDS CONSUMER PRODUCT, 1900 W. FIELD COURT, LAKE FOREST IL 60045 |
Stephen C. Estes | officer: Chief Administrative Officer | 1900 W. FIELD COURT, LAKE FOREST IL 60045 |
Clyde David Watson | officer: Chief Legal Counsel/Corp Sec | 1900 W. FIELD COURT, LAKE FOREST IL 60045 |
Valerie Elizabeth Miller | officer: EVP-HR | 1900 W. FIELD COURT, LAKE FOREST IL 60045 |
Michael F. Mcmahon | officer: VP-Senior Sales Team | 1900 W. FIELD COURT, LAKE FOREST IL 60045 |
Rita Fisher | officer: Chief Information Officer/EVP | 1900 W. FIELD COURT, LAKE FOREST IL 60045 |
Allen Hugli | director | C/O RANK GROUP, LEVEL II, 148 QUAY ST, AUCKLAND Q2 00000 |
Lisa M Smith | officer: President, Hefty Waste&Storage | 1900 W. FIELD COURT, C/O REYNOLDS CONSUMER PRODUCTS INC., LAKE FOREST IL 60045 |
Gregory Alan Cole | director | PO BOX 3515, AUCKLAND Q2 00000 |
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