GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Purmo Group PLC (OHEL:PURMO) » Definitions » Operating Income

Purmo Group (OHEL:PURMO) Operating Income : €11.6 Mil (TTM As of Mar. 2024)


View and export this data going back to 2021. Start your Free Trial

What is Purmo Group Operating Income?

Purmo Group's Operating Income for the three months ended in Mar. 2024 was €16.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was €11.6 Mil.

Warning Sign:

Purmo Group PLC has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Purmo Group's Operating Income for the three months ended in Mar. 2024 was €16.9 Mil. Purmo Group's Revenue for the three months ended in Mar. 2024 was €187.9 Mil. Therefore, Purmo Group's Operating Margin % for the quarter that ended in Mar. 2024 was 8.99%.

Purmo Group'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. Purmo Group's annualized ROC % for the quarter that ended in Mar. 2024 was 7.07%. Purmo Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 41.06%.


Purmo Group Operating Income Historical Data

The historical data trend for Purmo 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.

Purmo Group Operating Income Chart

Purmo Group Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial - 55.00 74.30 55.90 50.40

Purmo Group Quarterly Data
Dec19 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 18.60 9.10 11.20 -25.60 16.90

Purmo 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 €11.6 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.


Purmo Group  (OHEL:PURMO) Operating Income Explanation

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

Purmo 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 )
=67.6 * ( 1 - 24.19% )/( (723.9 + 726.5)/ 2 )
=51.24756/725.2
=7.07 %

where

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

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

Purmo 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 )
=83.6/( ( (163.7 + max(33.1, 0)) + (163.1 + max(47.3, 0)) )/ 2 )
=83.6/( ( 196.8 + 210.4 )/ 2 )
=83.6/203.6
=41.06 %

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)
=(75.2 + 143.7 + 14.7) - (162.2 + 0 + 38.3)
=33.1

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(105.7 + 144.3 + 12.8) - (185.4 + 0 + 30.1)
=47.3

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 %:

Purmo 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 )
=16.9/187.9
=8.99 %

* 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.


Purmo Group Operating Income Related Terms

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


Purmo Group (OHEL:PURMO) Business Description

Traded in Other Exchanges
Address
Bulevardi 46, P.O. Box 115, Helsinki, FIN, 00120
Purmo Group PLC offers sustainable indoor climate comfort solutions in Europe. The company's operating segments include two divisions: Radiators and ICS. It generates the majority of the revenue from the Radiators segment which manufactures two broader product categories: panel radiators comprised of horizontal and decorative panel radiators and vertical decorative radiators, and other radiators comprised of towel warmers, decorative tubular radiators, and electric radiators. Its ICS division provides a comprehensive range of components to wholesalers, specifiers, and installers comprising four product categories; radiant heating and cooling, air heating and cooling, water distribution systems, and system components and controls.

Purmo Group (OHEL:PURMO) Headlines

No Headlines