Tokyo Steel Manufacturing Co (TSE:5423) Operating Income : 円38,066 Mil (TTM As of Dec. 2023)

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What is Tokyo Steel Manufacturing Co Operating Income?

Tokyo Steel Manufacturing Co's Operating Income for the three months ended in Dec. 2023 was 円8,618 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was 円38,066 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Tokyo Steel Manufacturing Co's Operating Income for the three months ended in Dec. 2023 was 円8,618 Mil. Tokyo Steel Manufacturing Co's Revenue for the three months ended in Dec. 2023 was 円87,476 Mil. Therefore, Tokyo Steel Manufacturing Co's Operating Margin % for the quarter that ended in Dec. 2023 was 9.85%.

Good Sign:

Tokyo Steel Manufacturing Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

Tokyo Steel Manufacturing Co's 5-Year average Growth Rate for Operating Margin % was 9.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Tokyo Steel Manufacturing Co's annualized ROC % for the quarter that ended in Dec. 2023 was 19.82%. Tokyo Steel Manufacturing Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 41.80%.

Tokyo Steel Manufacturing Co Operating Income Historical Data

The historical data trend for Tokyo Steel Manufacturing 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.

Tokyo Steel Manufacturing Co Operating Income Chart

Tokyo Steel Manufacturing Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Operating Income

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17,360.00

3,995.00

31,773.00

38,064.00

38,066.00

Tokyo Steel Manufacturing 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															4,873.00	12,286.00	9,254.00	8,618.00	7,908.00

Tokyo Steel Manufacturing 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 Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was 円38,066 Mil.

Tokyo Steel Manufacturing Co (TSE:5423) Operating Income Explanation

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

Tokyo Steel Manufacturing Co'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: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	34472 * ( 1 - 25.65% )	/	( (128145	+	130479)	/ 2 )
=	25629.932	/	129312
=	19.82 %

where

	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	))
=	291428	-	61440	-	( 108291	-	max(0, 81371	-	183214	+	108291	))
=	128145

	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	))
=	297197	-	65371	-	( 109187	-	max(0, 85329	-	186676	+	109187	))
=	130479

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

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

Tokyo Steel Manufacturing Co'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: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	35196	/	( ( (82923 + max(-6360, 0))	+	(85496 + max(-7818, 0)) )	/	2 )
=	35196	/	( ( 82923	+	85496 )	/	2 )
=	35196	/	84209.5
=	41.80 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(29734	+	43083	+	2106)	-	(61440	+	0	+	19843)
=	-6360

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(27694	+	46599	+	3196)	-	(65371	+	0	+	19936)
=	-7818

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

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

Tokyo Steel Manufacturing Co'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 )
	=	8618	/	87476
	=	9.85 %

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.

Tokyo Steel Manufacturing Co Operating Income Related Terms

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Tokyo Steel Manufacturing Co (TSE:5423) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Tokyo Steel Manufacturing Co Ltd (TSE:5423) » Definitions » Operating Income

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Address

Kasumigaseki-Tokyu Bldg 15th Floor,, 3-7-1, Kasumigaseki, Chiyoda-ku, Tokyo, JPN, 1000013

Website

http://www.tokyosteel.co.jp

Tokyo Steel Manufacturing Co Ltd is a Japan-based company primarily engaged in production of long steel products and flat steel products. The company's long product portfolio comprises H beams, sheet piles, I-beams, checkered H-beams, channels, and reinforcing bars. The company's flat product portfolio consists of heavy plates, hot-rolled coils, pickled and oiled coils, hot-dip galvanized coils, checkered coils, and steel sheets. These products are used in broad range of applications, including construction, civil engineering, industrial equipment, plant equipment, bridge, and shipbuilding. The company has four plants located in Tahara, Okayama, Kyushu, and Utsunomiya. Tokyo Steel Manufacturing generates most of its revenue from the Japanese domestic market.

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