Tecan Group AG (FRA:TEN) Operating Income : €142 Mil (TTM As of Dec. 2023)

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What is Tecan Group AG Operating Income?

Tecan Group AG's Operating Income for the six months ended in Dec. 2023 was €77 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was €142 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Tecan Group AG's Operating Income for the six months ended in Dec. 2023 was €77 Mil. Tecan Group AG's Revenue for the six months ended in Dec. 2023 was €565 Mil. Therefore, Tecan Group AG's Operating Margin % for the quarter that ended in Dec. 2023 was 13.68%.

Warning Sign:

Tecan Group AG operating margin has been in a 5-year decline. The average rate of decline per year is -3.2%.

Tecan Group AG's 5-Year average Growth Rate for Operating Margin % was -3.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Tecan Group AG's annualized ROC % for the quarter that ended in Dec. 2023 was 9.98%. Tecan Group AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 50.38%.

Tecan Group AG Operating Income Historical Data

The historical data trend for Tecan Group AG'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.

Tecan Group AG Operating Income Chart

Tecan Group AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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81.11

112.70

137.34

149.80

144.17

Tecan Group AG Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial															43.37	78.18	68.56	64.66	77.29

Tecan Group AG 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 €142 Mil.

Tecan Group AG (FRA:TEN) Operating Income Explanation

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

Tecan Group AG'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 )
=	154.584 * ( 1 - -10.9% )	/	( (1716.486	+	1718.716)	/ 2 )
=	171.433656	/	1717.601
=	9.98 %

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	))
=	2130.219	-	93.735	-	( 319.998	-	max(0, 327.01	-	831.764	+	319.998	))
=	1716.486

	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	))
=	2199.152	-	91.895	-	( 388.541	-	max(0, 314.834	-	901.915	+	388.541	))
=	1718.716

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:

Tecan Group AG'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 )
=	152.608	/	( ( (143.436 + max(148.344, 0))	+	(153.933 + max(160.085, 0)) )	/	2 )
=	152.608	/	( ( 291.78	+	314.018 )	/	2 )
=	152.608	/	302.899
=	50.38 %

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)
=	(143.52	+	293.575	+	24.29)	-	(93.735	+	0	+	219.306)
=	148.344

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(168.255	+	269.722	+	23.963)	-	(91.895	+	0	+	209.96)
=	160.085

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 %:

Tecan Group AG'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 )
	=	77.292	/	565.052
	=	13.68 %

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.

Tecan Group AG Operating Income Related Terms

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Tecan Group AG (FRA:TEN) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Tecan Group AG (FRA:TEN) » Definitions » Operating Income

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TCGGY:USA TCHBF:USA TECNz:UK TECN:Switzerland

Address

Seestrasse 103, Mannedorf, CHE, 8708

Website

https://www.tecan.com

Tecan Group AG sells automated laboratory instruments and solutions for the diagnostics and life science research markets. The firm operates in two segments; Life Sciences Business (end-customer business) segment supplies end users with automated workflow solutions directly. These solutions include laboratory instruments, software packages, application know-how, services, consumables, and spare parts, and Partnering Business (OEM business) segment develops and manufactures OEM instruments and components that are distributed by partner companies under their own names. A majority proportion of Tecan's revenue is generated in the Americas and Europe.