Keystone Law Group (LSE:KEYS) Operating Income : £10.89 Mil (TTM As of Jan. 2024)

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What is Keystone Law Group Operating Income?

Keystone Law Group's Operating Income for the six months ended in Jan. 2024 was £6.06 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was £10.89 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Keystone Law Group's Operating Income for the six months ended in Jan. 2024 was £6.06 Mil. Keystone Law Group's Revenue for the six months ended in Jan. 2024 was £45.63 Mil. Therefore, Keystone Law Group's Operating Margin % for the quarter that ended in Jan. 2024 was 13.29%.

Good Sign:

Keystone Law Group PLC operating margin is expanding. Margin expansion is usually a good sign.

Keystone Law Group's 5-Year average Growth Rate for Operating Margin % was 3.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Keystone Law Group's annualized ROC % for the quarter that ended in Jan. 2024 was 60.81%. Keystone Law Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 724.36%.

Keystone Law Group Operating Income Historical Data

The historical data trend for Keystone Law Group'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.

Keystone Law Group Operating Income Chart

Keystone Law Group Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Operating Income

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5.16

5.48

8.45

9.46

10.89

Keystone Law Group Semi-Annual Data
	Jan15	Jan16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24
Operating Income	Get a 7-Day Free Trial												4.15	4.18	5.28	4.83	6.06

Keystone Law Group 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 Jan. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was £10.89 Mil.

Keystone Law Group (LSE:KEYS) Operating Income Explanation

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

Keystone Law Group's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	12.126 * ( 1 - 24.32% )	/	( (7.887	+	22.297)	/ 2 )
=	9.1769568	/	15.092
=	60.81 %

where

	Invested Capital		(Q: Jul. 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	))
=	40.742	-	21.507	-	( 11.348	-	max(0, 22.132	-	35.021	+	11.348	))
=	7.887

	Invested Capital		(Q: Jan. 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	))
=	41.295	-	10.631	-	( 8.367	-	max(0, 21.37	-	33.561	+	8.367	))
=	22.297

Note: The Operating Income data used here is two times the semi-annual (Jan. 2024) data.

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

Keystone Law Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jan. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jul. 2023		Q: Jan. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	10.956	/	( ( (0.476 + max(-9.849, 0))	+	(2.549 + max(-8.687, 0)) )	/	2 )
=	10.956	/	( ( 0.476	+	2.549 )	/	2 )
=	10.956	/	1.5125
=	724.36 %

where Working Capital is:

	Working Capital		(Q: Jul. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(10.132	+	0	+	1.734)	-	(21.507	+	0	+	0.208)
=	-9.849

	Working Capital		(Q: Jan. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(10.495	+	0	+	1.843)	-	(10.631	+	0	+	10.394)
=	-8.687

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jan. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Keystone Law Group's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	6.063	/	45.626
	=	13.29 %

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.

Keystone Law Group Operating Income Related Terms

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Keystone Law Group (LSE:KEYS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Keystone Law Group PLC (LSE:KEYS) » Definitions » Operating Income

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Address

48 Chancery Lane, London, GBR, WC2A 1JF

Website

https://www.keystonelaw.com

Keystone Law Group PLC is a law firm. The company provides legal services to a client base comprising of small and medium enterprises and private individuals. It offers conventional legal advice in the areas including property, commercial, corporate, employment, family, litigation, and private client. It derives revenue from rendering of services and other revenue. It serves sectors such as Aviation, Education, Financial Services, Food and Beverage, High-Net-Worth Family Office, Hotels, Hospitality and Leisure, In-House Legal, Life Sciences and Healthcare, Marine and Shipping, Media, Satellite, Space and Communications, and others.