The RMR Group (The RMR Group) Operating Income : $113.9 Mil (TTM As of Mar. 2024)

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What is The RMR Group Operating Income?

The RMR Group's Operating Income for the three months ended in Mar. 2024 was $14.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $113.9 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. The RMR Group's Operating Income for the three months ended in Mar. 2024 was $14.8 Mil. The RMR Group's Revenue for the three months ended in Mar. 2024 was $217.7 Mil. Therefore, The RMR Group's Operating Margin % for the quarter that ended in Mar. 2024 was 6.79%.

Warning Sign:

The RMR Group Inc operating margin has been in a 5-year decline. The average rate of decline per year is -27.1%.

The RMR Group's 5-Year average Growth Rate for Operating Margin % was -27.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. The RMR Group's annualized ROC % for the quarter that ended in Mar. 2024 was 16.52%. The RMR Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 131.76%.

The RMR Group Operating Income Historical Data

The historical data trend for The RMR 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.

The RMR Group Operating Income Chart

The RMR Group Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

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205.54

72.24

77.60

89.82

119.95

The RMR 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															18.29	63.15	17.81	18.14	14.79

The RMR 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 $113.9 Mil.

The RMR Group (NAS:RMR) Operating Income Explanation

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

The RMR 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 )
=	59.14 * ( 1 - 14.29% )	/	( (305.613	+	307.921)	/ 2 )
=	50.688894	/	306.767
=	16.52 %

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	))
=	625.443	-	120.203	-	( 202.428	-	max(0, 126.078	-	325.705	+	202.428	))
=	305.613

	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	))
=	583.701	-	83.672	-	( 192.108	-	max(0, 89.613	-	291.006	+	192.108	))
=	307.921

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

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

The RMR 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 )
=	59.14	/	( ( (45.192 + max(-110.932, 0))	+	(44.576 + max(-72.11, 0)) )	/	2 )
=	59.14	/	( ( 45.192	+	44.576 )	/	2 )
=	59.14	/	44.884
=	131.76 %

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)
=	(0	+	0	+	9.271)	-	(120.203	+	0	+	0)
=	-110.932

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	11.562)	-	(83.672	+	0	+	0)
=	-72.11

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 %:

The RMR 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 )
	=	14.785	/	217.749
	=	6.79 %

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.

The RMR Group Operating Income Related Terms

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

The RMR Group (The RMR Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » The RMR Group Inc (NAS:RMR) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

RMR:Mexico 26R:Germany 26R:Germany

Address

255 Washington Street, Suite 300, Two Newton Place, Newton, MA, USA, 02458-1634

Website

https://www.rmrgroup.com

The RMR Group Inc is a holding company that conducts its business through its subsidiary, which is an alternative asset management company that invests in real estate and manages real estate-related businesses. Its business consists of providing management services to publicly owned real estate investment trusts, or REITs, and real estate-related operating companies. It also provides management services to real estate securities mutual funds and commercial real estate finance companies. The company's operating segment is RMR LLC and All Other Operations. The RMR Group derives its revenue from providing business and property management services as well as advisory and other services.

Executives

Christopher J. Bilotto	officer: Exec. VP of The RMR Group LLC	C/O THE RMR GROUP LLC, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Jennifer F. Mintzer	officer: Exec. VP of The RMR Group LLC	C/O DIVERSIFIED HEALTHCARE TRUST, TWO NEWTON PL., 255 WASHINGTON STREET, NEWTON MA 02458
Jonathan Veitch	director	TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Jonathan Pertchik	officer: Exec. VP of The RMR Group LLC	C/O TRAVELCENTERS OF AMERICA INC., 24601 CENTER RIDGE ROAD, WESTLAKE OH 44145
Andrew J Rebholz	officer: Exec. VP of The RMR Group LLC	C/O TRAVELCENTERS OF AMERICA LLC, 400 CENTRE STREET, NEWTON MA 02458
Rosen Plevneliev	director	THE RMR GROUP INC., TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Frederick N Zeytoonjian	director	C/O REIT MANAGEMENT & RESEARCH LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Watkins Walter C. Jr.	director	C/O THE RMR GROUP INC., TWO NEWTON PLACE, 255 WASHINGTON STREET, NEWTON MA 02458-1634
Ann Logan	director	C/O PHH CORPORATION, 3000 LEADENHALL RD, MOUNT LAUREL NJ 08054
John G. Murray	officer: Exec. VP of The RMR Group LLC	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Thomas M O'brien	officer: Exec. VP of The RMR Group LLC	308 DORLA COURT, SUITE 206, ZEPHYR COVE NV 89448
David M Blackman	officer: Exec. VP of The RMR Group LLC	C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Mackey Bruce J Jr	officer: Exec. VP of The RMR Group LLC	C/O FIVE STAR QUALITY CARE, INC., 400 CENTRE STREET, NEWTON MA 02458
Matthew P. Jordan	officer: CFO and Treasurer	C/O THE RMR GROUP INC., TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458-1634
Senior Housing Properties Trust	10 percent owner	C/O THE RMR GROUP, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458