Ramsay Health Care (Ramsay Health Care) Operating Income : $491 Mil (TTM As of Dec. 2023)

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What is Ramsay Health Care Operating Income?

Ramsay Health Care's Operating Income for the six months ended in Dec. 2023 was $295 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $491 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ramsay Health Care's Operating Income for the six months ended in Dec. 2023 was $295 Mil. Ramsay Health Care's Revenue for the six months ended in Dec. 2023 was $5,412 Mil. Therefore, Ramsay Health Care's Operating Margin % for the quarter that ended in Dec. 2023 was 5.44%.

Warning Sign:

Ramsay Health Care Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -22.8%.

Ramsay Health Care's 5-Year average Growth Rate for Operating Margin % was -22.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Ramsay Health Care's annualized ROC % for the quarter that ended in Dec. 2023 was 3.30%. Ramsay Health Care's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 10.06%.

Ramsay Health Care Operating Income Historical Data

The historical data trend for Ramsay Health Care'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.

Ramsay Health Care Operating Income Chart

Ramsay Health Care Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Operating Income

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653.01

296.55

133.64

162.05

371.95

Ramsay Health Care Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial															190.56	-25.16	176.52	196.38	294.65

Ramsay Health Care 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 Dec. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was $491 Mil.

Ramsay Health Care (OTCPK:RMYHY) Operating Income Explanation

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

Ramsay Health Care's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	589.29 * ( 1 - 33.19% )	/	( (11940.201	+	11947.658)	/ 2 )
=	393.704649	/	11943.9295
=	3.30 %

where

	Invested Capital		(Q: Jun. 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	))
=	14114.228	-	2116.711	-	( 440.336	-	max(0, 2557.315	-	2614.631	+	440.336	))
=	11940.201

	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	))
=	13813.989	-	1985.274	-	( 242.102	-	max(0, 2460.576	-	2341.633	+	242.102	))
=	11947.658

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

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

Ramsay Health Care's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	691.298	/	( ( (6837.047 + max(31.41, 0))	+	(6877.443 + max(-17.872, 0)) )	/	2 )
=	691.298	/	( ( 6868.457	+	6877.443 )	/	2 )
=	691.298	/	6872.95
=	10.06 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1609.128	+	260.805	+	392.081)	-	(2116.711	+	29.463	+	84.43)
=	31.41

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1629.652	+	256.961	+	212.918)	-	(1985.274	+	54.284	+	77.845)
=	-17.872

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

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

Ramsay Health Care's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	294.645	/	5411.714
	=	5.44 %

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.

Ramsay Health Care Operating Income Related Terms

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Ramsay Health Care (Ramsay Health Care) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Ramsay Health Care Ltd (OTCPK:RMYHY) » Definitions » Operating Income

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RMSYF:USA RMY:Germany RHCPA.PFD:Australia RHC:Australia

Address

126 Phillip Street, Suite 18.03, Level 18, Deutsche Bank Place, Sydney, NSW, AUS, 2000

Website

https://www.ramsayhealth.com

Ramsay Health Care is one of the largest private healthcare providers in the world, with over 460 facilities across 10 countries. The key markets in which it operates are Australia, France, the U.K., and Sweden. It is the largest private hospital group in each of these markets except for the U.K. where it ranks fifth. Ramsay Sante, which operates the European regions other than the U.K., is a 52.5%-owned subsidiary of Ramsay Health Care. The company typically earns about 60% of consolidated earnings in Australia and 30% in France. Ramsay Health Care undertakes both private and publicly funded healthcare.