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U-Media Communications (ROCO:6470) Operating Income : NT$149 Mil (TTM As of Mar. 2024)


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What is U-Media Communications Operating Income?

U-Media Communications's Operating Income for the three months ended in Mar. 2024 was NT$12 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was NT$149 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. U-Media Communications's Operating Income for the three months ended in Mar. 2024 was NT$12 Mil. U-Media Communications's Revenue for the three months ended in Mar. 2024 was NT$344 Mil. Therefore, U-Media Communications's Operating Margin % for the quarter that ended in Mar. 2024 was 3.50%.

Good Sign:

U-Media Communications Inc operating margin is expanding. Margin expansion is usually a good sign.

U-Media Communications's 5-Year average Growth Rate for Operating Margin % was 1.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. U-Media Communications's annualized ROC % for the quarter that ended in Mar. 2024 was 22.72%. U-Media Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 113.20%.


U-Media Communications Operating Income Historical Data

The historical data trend for U-Media Communications'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.

U-Media Communications Operating Income Chart

U-Media Communications Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 155.39 244.76 137.19 198.18 180.79

U-Media Communications 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 44.30 52.00 57.05 27.46 12.02

U-Media Communications 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 NT$149 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.


U-Media Communications  (ROCO:6470) Operating Income Explanation

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

U-Media Communications'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 )
=48.088 * ( 1 - 14.85% )/( (249.272 + 111.124)/ 2 )
=40.946932/180.198
=22.72 %

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))
=1637.888 - 529.942 - ( 858.674 - max(0, 540.491 - 1559.905+858.674))
=249.272

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))
=1691.391 - 631.127 - ( 1038.826 - max(0, 654.694 - 1603.834+1038.826))
=111.124

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

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

U-Media Communications'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 )
=160.924/( ( (57.111 + max(162.508, 0)) + (64.697 + max(-81.545, 0)) )/ 2 )
=160.924/( ( 219.619 + 64.697 )/ 2 )
=160.924/142.158
=113.20 %

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)
=(504.186 + 185.59 + 4.0620000000001) - (529.942 + 0 + 1.388)
=162.508

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(354.248 + 196.157 + 7.963) - (631.127 + 0 + 8.7860000000001)
=-81.545

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 %:

U-Media Communications'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 )
=12.022/343.574
=3.50 %

* 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.


U-Media Communications Operating Income Related Terms

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U-Media Communications (ROCO:6470) Business Description

Traded in Other Exchanges
N/A
Address
Jin-Shan 8th Street, 3rd Floor, Number 1, Hsinchu, TWN, 300
U-Media Communications Inc is a Taiwan based company engaged in electronic component manufacturing, wired and wireless, Line communication machinery and equipment manufacturing, data storage and processing equipment manufacturing, manufacturing output, communication industry engineering, information software services, telecommunications control radio frequency equipment input and manufacturing, etc. The products of the company include Wireless Broadband, Wifi products like WST and Router and Wireless AV.

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