Spar Group (Spar Group) Operating Income : $116 Mil (TTM As of Sep. 2023)

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What is Spar Group Operating Income?

Spar Group's Operating Income for the six months ended in Sep. 2023 was $41 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $116 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Spar Group's Operating Income for the six months ended in Sep. 2023 was $41 Mil. Spar Group's Revenue for the six months ended in Sep. 2023 was $4,028 Mil. Therefore, Spar Group's Operating Margin % for the quarter that ended in Sep. 2023 was 1.03%.

Warning Sign:

Spar Group Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -9.1%.

Spar Group's 5-Year average Growth Rate for Operating Margin % was -9.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Spar Group's annualized ROC % for the quarter that ended in Sep. 2023 was 7.73%. Spar Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 5.10%.

Spar Group Operating Income Historical Data

The historical data trend for Spar 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.

Spar Group Operating Income Chart

Spar Group Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

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190.68

193.25

217.00

181.77

113.70

Spar Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Operating Income	Get a 7-Day Free Trial															106.35	113.75	85.08	75.02	41.47

Spar 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 Sep. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was $116 Mil.

Spar Group (OTCPK:SGPPF) Operating Income Explanation

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

Spar Group's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	82.94 * ( 1 - -109.01% )	/	( (2244.7	+	2242.015)	/ 2 )
=	173.352894	/	2243.3575
=	7.73 %

where

	Invested Capital		(Q: Mar. 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	))
=	3309.773	-	1118.924	-	( 59.016	-	max(0, 1565.136	-	1511.285	+	59.016	))
=	2244.7

	Invested Capital		(Q: Sep. 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	))
=	3247.747	-	1098.473	-	( 90.057	-	max(0, 1580.653	-	1487.912	+	90.057	))
=	2242.015

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

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

Spar Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	60.246	/	( ( (1013.056 + max(319.28, 0))	+	(1020.384 + max(8.8219999999999, 0)) )	/	2 )
=	60.246	/	( ( 1332.336	+	1029.206 )	/	2 )
=	60.246	/	1180.771
=	5.10 %

where Working Capital is:

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(973.756	+	397.892	+	69.64)	-	(1118.924	+	0	+	3.0840000000001)
=	319.28

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(837.665	+	356.443	+	67.375)	-	(1098.473	+	0	+	154.188)
=	8.8219999999999

When net working capital is negative, 0 is used.

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

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

Spar Group's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	41.47	/	4028.309
	=	1.03 %

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.

Spar Group Operating Income Related Terms

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

Spar Group (Spar Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Spar Group Ltd (OTCPK:SGPPF) » Definitions » Operating Income

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SPP:South Africa

Address

22 Chancery Lane, P.O. Box 1589, Pinetown, NL, ZAF, 3600

Website

https://www.spar.co.za

Spar Group Ltd is a wholesaler and distributor of goods and services to the group's retail outlets such as SPAR stores, Build it builders' merchandise outlets, TOPS at SPAR liquor stores, and others across Southern Africa. The company also has operations that comprise independently owned SPAR, MACE, XL and Londis stores in Ireland and southwest England. The company provides independent retailers the option to own or lease its stores and operate under the SPAR brand. The Southern Africa segment represents the majority of group revenue, with Ireland contributing an increasing proportion. The company delivers goods to the stores by a fleet of trucks and trailers owned by the SPAR Group. The group has two primary private brands namely SPAR and SaveMor.