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Invitation Homes (Invitation Homes) Operating Income : $709 Mil (TTM As of Mar. 2024)


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What is Invitation Homes Operating Income?

Invitation Homes's Operating Income for the three months ended in Mar. 2024 was $186 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $709 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Invitation Homes's Operating Income for the three months ended in Mar. 2024 was $186 Mil. Invitation Homes's Revenue for the three months ended in Mar. 2024 was $646 Mil. Therefore, Invitation Homes's Operating Margin % for the quarter that ended in Mar. 2024 was 28.74%.

Good Sign:

Invitation Homes Inc operating margin is expanding. Margin expansion is usually a good sign.

Invitation Homes's 5-Year average Growth Rate for Operating Margin % was 7.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Invitation Homes's annualized ROC % for the quarter that ended in Mar. 2024 was 4.06%. Invitation Homes's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 331.86%.


Invitation Homes Operating Income Historical Data

The historical data trend for Invitation Homes'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.

Invitation Homes Operating Income Chart

Invitation Homes Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 425.09 467.84 550.91 651.70 699.50

Invitation Homes 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 175.68 177.43 171.40 174.99 185.64

Invitation Homes 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 $709 Mil.

* 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.


Invitation Homes  (NYSE:INVH) Operating Income Explanation

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

Invitation Homes'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 )
=742.576 * ( 1 - 0% )/( (18319.759 + 18231.275)/ 2 )
=742.576/18275.517
=4.06 %

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))
=19220.967 - 200.59 - ( 700.618 - max(0, 200.59 - 1144.418+700.618))
=18319.759

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))
=19209.938 - 240.538 - ( 738.125 - max(0, 240.538 - 1206.043+738.125))
=18231.275

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

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

Invitation Homes'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 )
=930.524/( ( (45.006 + max(243.21, 0)) + (45.194 + max(227.38, 0)) )/ 2 )
=930.524/( ( 288.216 + 272.574 )/ 2 )
=930.524/280.395
=331.86 %

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)
=(60.81 + 0 + 382.99) - (200.59 + 0 + 0)
=243.21

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(70.393 + 0 + 397.525) - (240.538 + 0 + 0)
=227.38

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 %:

Invitation Homes'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 )
=185.644/646.039
=28.74 %

* 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.

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.


Invitation Homes Operating Income Related Terms

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Invitation Homes (Invitation Homes) Business Description

Traded in Other Exchanges
Address
1717 Main Street, Suite 2000, Dallas, TX, USA, 75201
Invitation Homes owns a portfolio of nearly 83,000 single-family rental homes. The company focuses on owning homes in the starter and move-up segments of the housing market with an average sale price around $300,000 and generally less than 1,800 square feet. The portfolio is spread across 16 target markets that feature high employment and household formation growth with over 70% of the portfolio in the Western U.S. and Florida; 15 of the 16 markets featuring average rents lower than homeownership costs.
Executives
Scott G. Eisen officer: EVP, Chief Investment Officer 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Jonathan S. Olsen officer: EVP & CFO 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Keith D Taylor director 301 VELOCITY WAY, 5TH FLOOR, FOSTER CITY CA 94404
Frances Aldrich Sevilla-sacasa director 3 GREENWAY PLAZA, SUITE 1300, HOUSTON TX 77046
Dallas B Tanner officer: See Remarks C/O INVITATION HOMES INC., 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Janice L. Sears director 1100 PARK PLACE, SUITE 200, SAN MATEO CA 94403
Charles D. Young officer: Chief Operating Officer C/O STARWOOD WAYPOINT RESIDENTIAL TRUST, 1999 HARRISON STREET, 24TH FLOOR, OAKLAND CA 94612
Bryce Blair director
Ernest Michael Freedman officer: See Remarks 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Kimberly K Norrell officer: See Remarks C/O INVITATION HOMES INC., 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Roizen Jo Ann Heidi director
Joseph D Margolis director C/O ARSENAL REAL ESTATE FUNDS, 117 ON THE GREEN, 67 PARK PLACE EAST, MORRISTOWN NJ 07960
Brep Ih6 Holdings Llc 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154
Ih3 Holdco Gp Llc 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154
Brep Vii-nq Side-by-side Gp L.l.c. 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154

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