Deterra Royalties (ASX:DRR) Operating Income : A$240.6 Mil (TTM As of Dec. 2023)

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What is Deterra Royalties Operating Income?

Deterra Royalties's Operating Income for the six months ended in Dec. 2023 was A$113.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was A$240.6 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Deterra Royalties's Operating Income for the six months ended in Dec. 2023 was A$113.2 Mil. Deterra Royalties's Revenue for the six months ended in Dec. 2023 was A$119.0 Mil. Therefore, Deterra Royalties's Operating Margin % for the quarter that ended in Dec. 2023 was 95.12%.

Deterra Royalties'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. Deterra Royalties's annualized ROC % for the quarter that ended in Dec. 2023 was 199.80%. Deterra Royalties's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 325.87%.

Deterra Royalties Operating Income Historical Data

The historical data trend for Deterra Royalties'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.

Deterra Royalties Operating Income Chart

Deterra Royalties Annual Data

Trend

Jun21

Jun22

Jun23

Operating Income

140.00

256.39

218.95

Deterra Royalties Semi-Annual Data
	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial			88.50	167.89	91.53	127.42	113.17

Deterra Royalties 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 semi-annually data reported by the company within the most recent 12 months, which was A$240.6 Mil.

Deterra Royalties (ASX:DRR) Operating Income Explanation

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

Deterra Royalties'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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	226.348 * ( 1 - 29.98% )	/	( (83.214	+	75.437)	/ 2 )
=	158.4888696	/	79.3255
=	199.80 %

where

	Invested Capital		(Q: Jun. 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	))
=	113.473	-	0.768	-	( 29.491	-	max(0, 0.968	-	103.773	+	29.491	))
=	83.214

	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	))
=	100.725	-	0.35	-	( 24.938	-	max(0, 0.596	-	91.311	+	24.938	))
=	75.437

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

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

Deterra Royalties'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: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	228.132	/	( ( (0.27 + max(73.189, 0))	+	(0.69 + max(65.864, 0)) )	/	2 )
=	228.132	/	( ( 73.459	+	66.554 )	/	2 )
=	228.132	/	70.0065
=	325.87 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(72.909	+	0	+	1.178)	-	(0.768	+	0	+	0.13)
=	73.189

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(62.888	+	0	+	3.485)	-	(0.35	+	0	+	0.159)
=	65.864

When net working capital is negative, 0 is used.

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

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

Deterra Royalties'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 )
	=	113.174	/	118.984
	=	95.12 %

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.

Deterra Royalties Operating Income Related Terms

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

Deterra Royalties (ASX:DRR) Business Description

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DETRF:USA

Address

140 St Georges Terrace, Level 16, Perth, WA, AUS, 6000

Website

https://www.iluka.com

Deterra Royalties was spun out from Iluka Resources in October 2020 with Iluka retaining a 20% interest. Its only material income generating asset is a royalty covering iron ore produced by BHP from the Mining Area C royalty area, located in the Pilbara region of Western Australia. The royalty area includes the North Flank mine, producing approximately 60 million metric tons of iron ore a year, and the South Flank mine, expected to add a further 85 million metric tons a year by 2024 after producing first ore in 2021. The MAC royalty area also covers most of the Tandanya and Mudlark deposits, which BHP intends to develop in the longer term as part of its plan to operate the MAC production hub for at least 50 years. Deterra's strategy is to grow into a diversified royalty company.