Li-Cycle Holdings (Li-Cycle Holdings) Operating Income : $-163.70 Mil (TTM As of Mar. 2024)

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What is Li-Cycle Holdings Operating Income?

Li-Cycle Holdings's Operating Income for the three months ended in Mar. 2024 was $-44.20 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $-163.70 Mil.

Warning Sign:

Li-Cycle Holdings Corp has never been profitable in the past 3 years. It lost money every year.

Operating Margin % is calculated as Operating Income divided by its Revenue. Li-Cycle Holdings's Operating Income for the three months ended in Mar. 2024 was $-44.20 Mil. Li-Cycle Holdings's Revenue for the three months ended in Mar. 2024 was $4.20 Mil. Therefore, Li-Cycle Holdings's Operating Margin % for the quarter that ended in Mar. 2024 was -1,052.38%.

Li-Cycle Holdings'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. Li-Cycle Holdings's annualized ROC % for the quarter that ended in Mar. 2024 was -23.61%. Li-Cycle Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -68.37%.

Li-Cycle Holdings Operating Income Historical Data

The historical data trend for Li-Cycle Holdings'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.

Li-Cycle Holdings Operating Income Chart

Li-Cycle Holdings Annual Data

Trend

Oct19

Oct20

Oct21

Oct22

Dec23

Operating Income

-4.06

-9.14

-32.10

-112.30

-158.60

Li-Cycle Holdings Quarterly Data
	Oct19	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial												-39.10	-42.50	-43.60	-33.40	-44.20

Li-Cycle Holdings 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 $-163.70 Mil.

Li-Cycle Holdings (NYSE:LICY) Operating Income Explanation

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

Li-Cycle Holdings'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 )
=	-176.8 * ( 1 - 0% )	/	( (741.6	+	756.2)	/ 2 )
=	-176.8	/	748.9
=	-23.61 %

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	))
=	886	-	152.1	-	( 70.6	-	max(0, 156.7	-	149	+	70.6	))
=	741.6

	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	))
=	932.3	-	150.4	-	( 109.1	-	max(0, 161.3	-	187	+	109.1	))
=	756.2

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

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

Li-Cycle Holdings'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 )
=	-500.8	/	( ( (727.2 + max(-75.8, 0))	+	(737.7 + max(-76.5, 0)) )	/	2 )
=	-500.8	/	( ( 727.2	+	737.7 )	/	2 )
=	-500.8	/	732.45
=	-68.37 %

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)
=	(1	+	9.6	+	65.9)	-	(152.1	+	0.2	+	0)
=	-75.8

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2.9	+	8.5	+	64.9)	-	(150.4	+	2.4	+	0)
=	-76.5

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 %:

Li-Cycle Holdings'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 )
	=	-44.2	/	4.2
	=	-1,052.38 %

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.

Li-Cycle Holdings Operating Income Related Terms

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Li-Cycle Holdings (Li-Cycle Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Li-Cycle Holdings Corp (NYSE:LICY) » Definitions » Operating Income

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Traded in Other Exchanges

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Address

207 Queen’s Quay West, Suite 590, Toronto, ON, CAN, M5J 1A7

Website

https://www.li-cycle.com

Li-Cycle Holdings Corp is a lithium-ion battery resource recovery and the leading lithium-ion battery recycler. Its proprietary "Spoke and Hub" recycling process is designed at its Spokes, to process battery manufacturing scrap and end-of-life batteries to produce "black mass" and other intermediate products, and at its Hubs, to process black mass to recover raw materials, including but not limited to lithium carbonate, cobalt sulphate and nickel sulphate.