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Newmark Group (Newmark Group) Operating Income : $98 Mil (TTM As of Mar. 2024)


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What is Newmark Group Operating Income?

Newmark Group's Operating Income for the three months ended in Mar. 2024 was $-23 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $98 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Newmark Group's Operating Income for the three months ended in Mar. 2024 was $-23 Mil. Newmark Group's Revenue for the three months ended in Mar. 2024 was $546 Mil. Therefore, Newmark Group's Operating Margin % for the quarter that ended in Mar. 2024 was -4.14%.

Warning Sign:

Newmark Group Inc operating margin has been in a 5-year decline. The average rate of decline per year is -14.4%.

Newmark Group's 5-Year average Growth Rate for Operating Margin % was -14.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Newmark Group's annualized ROC % for the quarter that ended in Mar. 2024 was -2.00%. Newmark Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -7.51%.


Newmark Group Operating Income Historical Data

The historical data trend for Newmark 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.

Newmark Group Operating Income Chart

Newmark Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only 165.28 168.71 22.07 283.27 111.36

Newmark Group 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 -8.80 23.62 26.85 69.70 -22.60

Newmark 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 Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $98 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.


Newmark Group  (NAS:NMRK) Operating Income Explanation

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

Newmark Group'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 )
=-90.392 * ( 1 - 11.79% )/( (3993.278 + 3961.334)/ 2 )
=-79.7347832/3977.306
=-2.00 %

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))
=4471.575 - 461.797 - ( 164.993 - max(0, 1489.604 - 1506.104+164.993))
=3993.278

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))
=4421.922 - 453.542 - ( 140.903 - max(0, 1370.271 - 1377.317+140.903))
=3961.334

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

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

Newmark Group'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 )
=-90.448/( ( (774.397 + max(447.615, 0)) + (741.803 + max(443.411, 0)) )/ 2 )
=-90.448/( ( 1222.012 + 1185.214 )/ 2 )
=-90.448/1203.613
=-7.51 %

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)
=(622.508 + 0 + 708.996) - (461.797 + 0 + 422.092)
=447.615

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(524.413 + 0 + 690.95) - (453.542 + 0 + 318.41)
=443.411

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 %:

Newmark Group'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 )
=-22.598/546.499
=-4.14 %

* 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.


Newmark Group Operating Income Related Terms

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Newmark Group (Newmark Group) Business Description

Traded in Other Exchanges
Address
125 Park Avenue, New York, NY, USA, 10017
Newmark Group Inc is a commercial real estate advisory firm. It offers services, including leasing and corporate advisory services, investment sales, commercial mortgage brokerage, appraisal and valuation, project management, and property, among others. Newmark offers a diverse array of integrated services and products designed to meet the full needs of both real estate investors/owners and occupiers. The company provides real estate strategic consulting and systems integration services to CFI's global clients including many Fortune 500 and Forbes Global 2000 companies, owner-occupiers, government agencies, healthcare and higher education clients.
Executives
Jay Itzkowitz director NEW YORK HOCKEY HOLDINGS, LLC, 200 PARK AVENUE SOUTH SUITE 1610, NEW YORK NY 10003
Howard W Lutnick director, 10 percent owner, officer: Chairman
Stephen M Merkel officer: EVP, Chief Legal Officer C/O BGC PARTNERS, INC., 499 PARK AVENUE, NEW YORK NY 10022
Mcintyre Kenneth A Jr director C/O HUDSON CITY BANCORP, INC., WEST 80 CENTURY ROAD, PARAMUS NJ 07652
Barry M Gosin officer: Chief Executive Officer C/O ESPEED, INC., 110 EAST 59TH STREET, NEW YORK NY 10022
Virginia S Bauer director C/O NEWMARK GROUP, INC., 125 PARK AVENUE, NEW YORK NY 10022
Cantor Fitzgerald, L. P. director, 10 percent owner 110 EAST 59TH STREET, NEW YORK NY 10022
Cf Group Management Inc director, 10 percent owner 135 EAST 57TH ST, NEW YORK NY 10022
Michael Snow director C/O GFI GROUP INC., 55 WATER STREET, NEW YORK NY 10041
Bgc Partners, Inc. director, 10 percent owner 499 PARK AVENUE, NEW YORK NY 10022
Peter F Cervinka director C/O NEWMARK GROUP, INC., 125 PARK AVENUE, NEW YORK NY 10022
Michael J. Rispoli officer: Chief Financial Officer C/O NNN 2003 VALUE FUND, LLC, 1551 N. TUSTIN AVENUE, SUITE 200, SANTA ANA CA 92705
John H Dalton director 50 OLD WEBSTER ROAD, OXFORD MA 01540
James R Ficarro director, officer: Chief Operating Officer C/O NEWMARK GROUP, INC., 125 PARK AVENUE, NEW YORK NY 10017