Preferred Apartment Communities (Preferred Apartment Communities) Operating Income : $99.6 Mil (TTM As of Mar. 2022)

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What is Preferred Apartment Communities Operating Income?

Preferred Apartment Communities's Operating Income for the three months ended in Mar. 2022 was $20.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2022 was $99.6 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Preferred Apartment Communities's Operating Income for the three months ended in Mar. 2022 was $20.7 Mil. Preferred Apartment Communities's Revenue for the three months ended in Mar. 2022 was $104.9 Mil. Therefore, Preferred Apartment Communities's Operating Margin % for the quarter that ended in Mar. 2022 was 19.76%.

Preferred Apartment Communities'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. Preferred Apartment Communities's annualized ROC % for the quarter that ended in Mar. 2022 was 2.37%. Preferred Apartment Communities's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2022 was %.

Preferred Apartment Communities Operating Income Historical Data

The historical data trend for Preferred Apartment Communities'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.

Preferred Apartment Communities Operating Income Chart

Preferred Apartment Communities Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Operating Income

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59.39

70.08

100.24

-80.03

102.51

Preferred Apartment Communities Quarterly Data
	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22
Operating Income	Get a 7-Day Free Trial															23.68	29.03	27.13	22.68	20.72

Preferred Apartment Communities 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 Mar. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $99.6 Mil.

Preferred Apartment Communities (NYSE:APTS) Operating Income Explanation

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

Preferred Apartment Communities's annualized ROC % for the quarter that ended in Mar. 2022 is calculated as:

	ROC % (Q: Mar. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2021 )	+	Invested Capital (Q: Mar. 2022 ))	/ count )
=	82.888 * ( 1 - 0% )	/	( (3455.017	+	3544.942)	/ 2 )
=	82.888	/	3499.9795
=	2.37 %

where

	Invested Capital		(Q: Dec. 2021 )
=	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	))
=	3563.368	-	78.146	-	( 30.205	-	max(0, 139.348	-	352.692	+	30.205	))
=	3455.017

	Invested Capital		(Q: Mar. 2022 )
=	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	))
=	3740.272	-	78.109	-	( 117.221	-	max(0, 139.725	-	470.442	+	117.221	))
=	3544.942

Note: The Operating Income data used here is four times the quarterly (Mar. 2022) data.

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

Preferred Apartment Communities's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2022 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2022 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2021		Q: Mar. 2022
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	61.264	/	( ( (0 + max(-39.33, 0))	+	(0 + max(-24.228, 0)) )	/	2 )
=	61.264	/	( ( 0	+	0 )	/	2 )
=	61.264	/	0
=	%

where Working Capital is:

	Working Capital		(Q: Dec. 2021 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(67.343	+	0	+	32.675)	-	(78.146	+	61.202	+	0)
=	-39.33

	Working Capital		(Q: Mar. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(82.023	+	0	+	33.474)	-	(78.109	+	61.616	+	0)
=	-24.228

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2022) EBIT data.

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

Preferred Apartment Communities's Operating Margin % for the quarter that ended in Mar. 2022 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2022 )	/	Revenue (Q: Mar. 2022 )
	=	20.722	/	104.88
	=	19.76 %

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.

Preferred Apartment Communities Operating Income Related Terms

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

Preferred Apartment Communities (Preferred Apartment Communities) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Preferred Apartment Communities Inc (NYSE:APTS) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

3284 Northside Parkway NW, Suite 150, Atlanta, GA, USA, 30327

Website

https://www.pacapts.com

Preferred Apartment Communities Inc is a real estate investment trust that acquires and operates multifamily properties in select targeted markets throughout the United States. It operates through the following segments: The Multifamily Communities segment being the highest revenue generating segment; Financing segment refers to the portfolio of real estate loans, bridge loans, other instruments, and other real estate related assets; New Market Properties segment covers a portfolio of grocery-anchored shopping centers, as well as the financial results from the retail real estate loans; and Preferred Office properties segment relates to the office buildings.

Executives

Sara Finley	director	ONE CVS DRIVE, WOONSOCKET RI 02895
Jeffrey David Sherman	officer: PRESIDENT - MULTIFAMILY	3284 NORTHSIDE PARKWAY NW SUITE 150 ATLANTA GA 30327
Michael Aide	officer: PRESIDENT - RETAIL	3284 NORTHSIDE PARKWAY NW SUITE 150 ATLANTA GA 30327
John A Isakson	officer: CHIEF FINANCIAL OFFICER	3284 NORTHSIDE PARKWAY, NW, SUITE 150, ATLANTA GA 30327
Jeffrey R Sprain	officer: EVP, GENERAL COUNSEL AND SEC.	3284 NORTHSIDE PARKWAY, NW, SUITE 150 ATLANTA GA 30327
Daphne Bryson Jackson	director	3284 NORTHSIDE PARKWAY NW SUITE 150 ATLANTA GA 30327
John M Cannon	director	3284 NORTHSIDE PARKWAY NW SUITE 150 ATLANTA GA 30327
Daniel M Dupree	director	2500 WINDY RIDGE PARKWAY SUITE 1600, ATLANTA GA 30339
Parker Boone Dupree	officer: President - Office	3284 NORTHSIDE PARKWAY NW SUITE 150 ATLANTA GA 30327
Joel T Murphy	director, officer: See Remarks	2500 WINDY RIDGE PARKWAY, SUITE 1600, ATLANTA GA 30339
Michael Joseph Cronin	officer: See Remarks	3625 CUMBERLAND BOULDEVARD SUITE 400 ATLANTA GA 30339
Steve Bartkowski	director	3625 CUMBERLAND BOULDEVARD SUITE 400 ATLANTA GA 30339
Gary B Coursey	director
Gresham William J Jr	director	1010 RICHMOND HILL DRIVE MARIETTA GA 30068
Timothy Alan Peterson	director	3625 CUMBERLAND BOULDEVARD SUITE 400 ATLANTA GA 30339