Fortune Brands Innovations (Fortune Brands Innovations) Operating Income : $706 Mil (TTM As of Mar. 2024)

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What is Fortune Brands Innovations Operating Income?

Fortune Brands Innovations's Operating Income for the three months ended in Mar. 2024 was $158 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $706 Mil.

Warning Sign:

Fortune Brands Innovations 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. Fortune Brands Innovations's Operating Income for the three months ended in Mar. 2024 was $158 Mil. Fortune Brands Innovations's Revenue for the three months ended in Mar. 2024 was $1,110 Mil. Therefore, Fortune Brands Innovations's Operating Margin % for the quarter that ended in Mar. 2024 was 14.26%.

Good Sign:

Fortune Brands Innovations Inc operating margin is expanding. Margin expansion is usually a good sign.

Fortune Brands Innovations's 5-Year average Growth Rate for Operating Margin % was 5.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Fortune Brands Innovations's annualized ROC % for the quarter that ended in Mar. 2024 was 8.97%. Fortune Brands Innovations's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 35.19%.

Fortune Brands Innovations Operating Income Historical Data

The historical data trend for Fortune Brands Innovations'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.

Fortune Brands Innovations Operating Income Chart

Fortune Brands Innovations Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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722.80

592.20

827.50

815.40

682.50

Fortune Brands Innovations 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															134.90	174.80	200.20	172.60	158.20

Fortune Brands Innovations 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. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $706 Mil.

Fortune Brands Innovations (NYSE:FBIN) Operating Income Explanation

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

Fortune Brands Innovations'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 )
=	632.8 * ( 1 - 23% )	/	( (4998.2	+	5860.4)	/ 2 )
=	487.256	/	5429.3
=	8.97 %

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	))
=	6565	-	1200.4	-	( 366.4	-	max(0, 1200.4	-	2045.7	+	366.4	))
=	4998.2

	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	))
=	6791.5	-	571.4	-	( 359.7	-	max(0, 1062.5	-	2172.1	+	359.7	))
=	5860.4

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

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

Fortune Brands Innovations'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 )
=	621.2	/	( ( (1148.8 + max(478.9, 0))	+	(1153.2 + max(749.9, 0)) )	/	2 )
=	621.2	/	( ( 1627.7	+	1903.1 )	/	2 )
=	621.2	/	1765.4
=	35.19 %

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)
=	(534.2	+	982.3	+	162.8)	-	(1200.4	+	0	+	0)
=	478.9

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(615.9	+	1025.2	+	171.3)	-	(571.4	+	0	+	491.1)
=	749.9

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 %:

Fortune Brands Innovations'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 )
	=	158.2	/	1109.6
	=	14.26 %

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.

Fortune Brands Innovations Operating Income Related Terms

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

Fortune Brands Innovations (Fortune Brands Innovations) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Fortune Brands Innovations Inc (NYSE:FBIN) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

2FB:Germany 2FB:Germany

Address

520 Lake Cook Road, Suite 300, Deerfield, IL, USA, 60015-5611

Website

https://www.fbin.com

Fortune Brands Innovations is a leading home and security products company that operates two segments. The company's $2.6 billion plumbing segment, led by the Moen brand, sells faucets, showers, and other plumbing fixtures, and the $2.2 billion outdoors and security segment sells entry doors under the Therma-Tru brand name, Fiberon-branded patio decking, and locks and other security devices under the Master Lock and SentrySafe brand names.

Executives

Ann F Hackett	director
Amee Chande	director	520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Stephanie L. Pugliese	director	170 COUNTRYSIDE DRIVE, BELLEVILLE WI 53508
David V. Barry	officer: EVP & CFO	FORTUNE BRANDS INNOVATIONS, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
Lee John Dong Gu	officer: EVP Chief Strategy & Growth	520 LAKE COOK ROAD, DEERFIELD IL 60015
Ron Wilson	officer: EVP, Chief Supply Chain	FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
Hiranda S Donoghue	officer: EVP Chief Legal & Secretary	520 LAKE COOK ROAD, DEERFIELD IL 60015
Cheri M Phyfer	officer: EVP, Group President	520 LAKE COOK ROAD, DEERFIELD IL 60015
Sheri Grissom	officer: EVP, CHRO & Transformation	13000 WEST SILVER SPRING DRIVE, BUTLER WI 53007
Nicholas I. Fink	director, officer: Chief Executive Officer	510 LAKE COOK ROAD, DEERFIELD IL 60015
Patrick D Hallinan	officer: EVP & CFO	FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
Mackay A D David	director
Martin Thomas	officer: SVP Ops &Supply Chain Strategy	FORTUNE BRANDS HOME & SECURITY, INC., SUITE 300, DEERFIELD IL 60015
May Russell	officer: SVP & CDO	520 LAKE COOK ROAD, DEERFIELD IL 60015
Danny Luburic	officer: Vice President & Controller	FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015