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Open House Group Co (TSE:3288) Operating Income : 円128,402 Mil (TTM As of Mar. 2024)


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What is Open House Group Co Operating Income?

Open House Group Co's Operating Income for the three months ended in Mar. 2024 was 円23,079 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was 円128,402 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Open House Group Co's Operating Income for the three months ended in Mar. 2024 was 円23,079 Mil. Open House Group Co's Revenue for the three months ended in Mar. 2024 was 円297,910 Mil. Therefore, Open House Group Co's Operating Margin % for the quarter that ended in Mar. 2024 was 7.75%.

Good Sign:

Open House Group Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

Open House Group Co's 5-Year average Growth Rate for Operating Margin % was 2.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Open House Group Co's annualized ROC % for the quarter that ended in Mar. 2024 was 8.15%. Open House Group Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 16.22%.


Open House Group Co Operating Income Historical Data

The historical data trend for Open House Group 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.

Open House Group Co Operating Income Chart

Open House Group Co Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 57,782.00 62,129.00 101,104.00 119,358.00 142,330.00

Open House Group 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 38,983.00 27,158.00 45,521.00 32,644.00 23,079.00

Open House Group 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 円128,402 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.


Open House Group Co  (TSE:3288) Operating Income Explanation

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

Open House Group 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 )
=92316 * ( 1 - 22.66% )/( (881354 + 870237)/ 2 )
=71397.1944/875795.5
=8.15 %

where

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

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

Open House Group 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 )
=113272/( ( (33830 + max(674941, 0)) + (31951 + max(656365, 0)) )/ 2 )
=113272/( ( 708771 + 688316 )/ 2 )
=113272/698543.5
=16.22 %

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)
=(17698 + 742556 + 41267) - (55300 + 0 + 71280)
=674941

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(15316 + 752405 + 21899) - (64224 + 0 + 69031)
=656365

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 %:

Open House Group 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 )
=23079/297910
=7.75 %

* 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.


Open House Group Co Operating Income Related Terms

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Open House Group Co (TSE:3288) Business Description

Traded in Other Exchanges
Address
2-4-1 Marunouchi, Chiyoda-ku, Tokyo, JPN, 100-6312
Open House Group Co Ltd is principally engaged in real estate businesses, including real estate brokerage, single-family home development and sales, condominium development and sales, real estate investment, real estate financing, and other related services. The company comprises six operating segments: brokerage, single-family homes, Asakawa Home, condominiums, property resale, and others. The single-family homes segment delivers approximately half of group revenue, and the property resale segment contributes to the next most significant portion of revenue. Open House's sales centers are mainly located in Tokyo and surrounding areas.

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