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C and D Holsin Engineering Consulting Co (SHSE:603909) Operating Income : ¥185 Mil (TTM As of Mar. 2024)


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What is C and D Holsin Engineering Consulting Co Operating Income?

C and D Holsin Engineering Consulting Co's Operating Income for the three months ended in Mar. 2024 was ¥38 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ¥185 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. C and D Holsin Engineering Consulting Co's Operating Income for the three months ended in Mar. 2024 was ¥38 Mil. C and D Holsin Engineering Consulting Co's Revenue for the three months ended in Mar. 2024 was ¥1,630 Mil. Therefore, C and D Holsin Engineering Consulting Co's Operating Margin % for the quarter that ended in Mar. 2024 was 2.31%.

Warning Sign:

C and D Holsin Engineering Consulting Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -25.8%.

C and D Holsin Engineering Consulting Co's 5-Year average Growth Rate for Operating Margin % was -25.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. C and D Holsin Engineering Consulting Co's annualized ROC % for the quarter that ended in Mar. 2024 was 16.26%. C and D Holsin Engineering Consulting Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 131.55%.


C and D Holsin Engineering Consulting Co Operating Income Historical Data

The historical data trend for C and D Holsin Engineering Consulting Co'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.

C and D Holsin Engineering Consulting Co Operating Income Chart

C and D Holsin Engineering Consulting Co 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 148.06 122.54 105.41 119.45 156.63

C and D Holsin Engineering Consulting Co 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 8.90 35.14 24.48 88.11 37.62

C and D Holsin Engineering Consulting Co 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 ¥185 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.


C and D Holsin Engineering Consulting Co  (SHSE:603909) Operating Income Explanation

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

C and D Holsin Engineering Consulting Co'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 )
=150.48 * ( 1 - 21.63% )/( (669.138 + 781.707)/ 2 )
=117.931176/725.4225
=16.26 %

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))
=2998.397 - 1677.939 - ( 651.32 - max(0, 1855.413 - 2572.904+651.32))
=669.138

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))
=3115.411 - 1760.097 - ( 573.607 - max(0, 1956.536 - 2695.819+573.607))
=781.707

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

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

C and D Holsin Engineering Consulting Co'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 )
=152.044/( ( (117.3 + max(-958.226, 0)) + (113.849 + max(-1091.591, 0)) )/ 2 )
=152.044/( ( 117.3 + 113.849 )/ 2 )
=152.044/115.5745
=131.55 %

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)
=(832.334 + 25.104 + 31.198) - (1677.939 + 0 + 168.923)
=-958.226

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(781.332 + 46.402 + 28.225) - (1760.097 + 0 + 187.453)
=-1091.591

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 %:

C and D Holsin Engineering Consulting Co'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 )
=37.62/1629.981
=2.31 %

* 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.


C and D Holsin Engineering Consulting Co Operating Income Related Terms

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C and D Holsin Engineering Consulting Co (SHSE:603909) Business Description

Traded in Other Exchanges
N/A
Address
No. 2368, Fangzhong Road, Unit 1101-1104, Huli District, Fujian Province, Xiamen, CHN, 361009
C and D Holsin Engineering Consulting Co Ltd is a project management, design, and consulting company. It is engaged in building roads, bridges, and tunnels, and also provides traffic engineering and supporting ancillary works. It is specialized in engineering supervision, design consulting, test testing, repair and reinforcement, project management, engineering new material research and development and application, and other technical services.
Executives
Guo Mei Fen senior management
Gao Wei Lin senior management
Liu Zhi Xun senior management
Kang Ming Xu Directors, senior managers
Huang He Bin Directors, senior managers
Xu Hui senior management
Shen Ming Hua Supervisors
Huang Ai Ping Director
Huang Cong Zeng Director
Shen Zhi Xian Supervisors
Liu De Quan Directors, senior managers
Chen Han Bin Supervisors
Chen Tian Pei Directors, senior managers

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