Gencor Industries (Gencor Industries) Operating Income : $16.6 Mil (TTM As of Mar. 2024)

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What is Gencor Industries Operating Income?

Gencor Industries's Operating Income for the three months ended in Mar. 2024 was $7.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $16.6 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Gencor Industries's Operating Income for the three months ended in Mar. 2024 was $7.1 Mil. Gencor Industries's Revenue for the three months ended in Mar. 2024 was $40.7 Mil. Therefore, Gencor Industries's Operating Margin % for the quarter that ended in Mar. 2024 was 17.39%.

Warning Sign:

Gencor Industries Inc operating margin has been in a 5-year decline. The average rate of decline per year is -15.4%.

Gencor Industries's 5-Year average Growth Rate for Operating Margin % was -15.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Gencor Industries's annualized ROC % for the quarter that ended in Mar. 2024 was 24.54%. Gencor Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 39.94%.

Gencor Industries Operating Income Historical Data

The historical data trend for Gencor Industries'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.

Gencor Industries Operating Income Chart

Gencor Industries Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

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9.47

5.54

0.70

4.17

13.43

Gencor Industries 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															5.16	3.45	2.69	3.38	7.07

Gencor Industries 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 $16.6 Mil.

Gencor Industries (AMEX:GENC) Operating Income Explanation

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

Gencor Industries'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 )
=	28.288 * ( 1 - 23% )	/	( (94.056	+	83.478)	/ 2 )
=	21.78176	/	88.767
=	24.54 %

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	))
=	205.658	-	6.812	-	( 104.79	-	max(0, 19.749	-	189.568	+	104.79	))
=	94.056

	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	))
=	206.042	-	5.457	-	( 117.107	-	max(0, 13.759	-	190.282	+	117.107	))
=	83.478

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

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

Gencor Industries'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 )
=	28.288	/	( ( (12.947 + max(59.1, 0))	+	(12.296 + max(57.304, 0)) )	/	2 )
=	28.288	/	( ( 72.047	+	69.6 )	/	2 )
=	28.288	/	70.8235
=	39.94 %

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)
=	(4.028	+	72.209	+	2.377)	-	(6.812	+	12.702	+	-3.5527136788005E-15)
=	59.1

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(5.758	+	63.732	+	1.216)	-	(5.457	+	7.945	+	0)
=	57.304

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 %:

Gencor Industries'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 )
	=	7.072	/	40.676
	=	17.39 %

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.

Gencor Industries Operating Income Related Terms

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

Gencor Industries (Gencor Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Gencor Industries Inc (AMEX:GENC) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

5201 North Orange Blossom Trail, Orlando, FL, USA, 32810

Website

https://www.gencor.com

Gencor Industries Inc and its subsidiaries is a manufacturer of heavy machinery used in the production of highway construction materials and environmental control equipment. The Company has one reporting segment, equipment for the highway construction industry. The firm's principal products include asphalt plants, combustion systems, hot mix asphalt plants, fluid heat transfer systems, and asphalt pavers.

Executives

Jeanne M Lyons	officer: Secretary	5201 N. ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
Ketcham Walter A Jr	director	5201 N ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
Thomas A. Vecchiolla	director	601 QUEEN STREET, ALEXANDRIA VA 22314
Eric E Mellen	officer: CFO	5201 N. ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
James P Sharp	director	5201 N. ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
Marc G Elliott	officer: Pres., Const. Equip. Group	5201 N ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
John G Coburn	director	10505 GUNSTON ROAD, HORTON VA 22079
Sherry Houtkin	10 percent owner	3900 ISLAND BLVD., PENTHOUSE 4, AVENTURA FL 33160
David Air	director	PO BOX 1188, DUNDEE FL 33838
Dondero Cort J	director
Lawrence C Maingot	officer: Vice President and Controller	5201 N. ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
Dennis Bryan Hunt	officer: Senior Vice President	2790 MARSH WREN CIRCLE, LONGWOOD FL 32779
Lawrence K Miles	officer: Vice President Product Support	5201 N. ORANGE BLOSSOM TRAIL, ORLANDO FL 32810
Lowell Raymond Adams	officer: CFO and Treasurer	1722 SE HALYARD LANE, VANCOUVER WA 98661
Robert A Mifflin	officer: Interim CFO	5201 N. ORANGE BLOSSOM TRAIL, ORLANDO FL 32810