Orix Jreit (TSE:8954) Operating Income : 円21,628 Mil (TTM As of Aug. 2023)

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What is Orix Jreit Operating Income?

Orix Jreit's Operating Income for the six months ended in Aug. 2023 was 円9,001 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2023 was 円21,628 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Orix Jreit's Operating Income for the six months ended in Aug. 2023 was 円9,001 Mil. Orix Jreit's Revenue for the six months ended in Aug. 2023 was 円25,697 Mil. Therefore, Orix Jreit's Operating Margin % for the quarter that ended in Aug. 2023 was 35.03%.

Warning Sign:

Orix Jreit Inc operating margin has been in a 5-year decline. The average rate of decline per year is -1.7%.

Orix Jreit's 5-Year average Growth Rate for Operating Margin % was -1.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Orix Jreit's annualized ROC % for the quarter that ended in Aug. 2023 was 2.69%. Orix Jreit's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2023 was 2.84%.

Orix Jreit Operating Income Historical Data

The historical data trend for Orix Jreit'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.

Orix Jreit Operating Income Chart

Orix Jreit Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Operating Income

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22,315.00

25,461.00

21,975.00

23,393.00

21,220.00

Orix Jreit Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
Operating Income	Get a 7-Day Free Trial															10,480.00	12,913.00	12,219.00	9,001.00	12,627.00

Orix Jreit 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 Aug. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was 円21,628 Mil.

Orix Jreit (TSE:8954) Operating Income Explanation

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

Orix Jreit's annualized ROC % for the quarter that ended in Aug. 2023 is calculated as:

	ROC % (Q: Aug. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2023 )	+	Invested Capital (Q: Aug. 2023 ))	/ count )
=	18002 * ( 1 - 0.18% )	/	( (668585	+	667793)	/ 2 )
=	17969.5964	/	668189
=	2.69 %

where

	Invested Capital		(Q: Feb. 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	))
=	680786	-	3388	-	( 52315	-	max(0, 52038	-	60851	+	52315	))
=	668585

	Invested Capital		(Q: Aug. 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	))
=	677836	-	3619	-	( 42071	-	max(0, 45244	-	51668	+	42071	))
=	667793

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

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

Orix Jreit's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Aug. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Feb. 2023		Q: Aug. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	17482	/	( ( (612681 + max(586, 0))	+	(618495 + max(1461, 0)) )	/	2 )
=	17482	/	( ( 613267	+	619956 )	/	2 )
=	17482	/	616611.5
=	2.84 %

where Working Capital is:

	Working Capital		(Q: Feb. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1258	+	0	+	7278)	-	(3388	+	0	+	4562)
=	586

	Working Capital		(Q: Aug. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1370	+	0	+	8227)	-	(3619	+	0	+	4517)
=	1461

When net working capital is negative, 0 is used.

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

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

Orix Jreit's Operating Margin % for the quarter that ended in Aug. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Aug. 2023 )	/	Revenue (Q: Aug. 2023 )
	=	9001	/	25697
	=	35.03 %

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.

Orix Jreit Operating Income Related Terms

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

Orix Jreit (TSE:8954) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Orix Jreit Inc (TSE:8954) » Definitions » Operating Income

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Address

4-1, Hamamatsucho 2-chome, Minato-ku, Tokyo, JPN, 105-6135

Website

http://www.orixjreit.com

Orix Jreit Inc is a real estate investment trust engaged in the acquisition, ownership, and leasing of properties throughout Japan. In terms of asset acquisition price, the majority of the company's real estate portfolio comprises office buildings. Retail facilities and residential properties together also make up a considerable percentage of this portfolio. Orix JREIT's real estate assets are mostly located in the Greater Tokyo area, with those in the Central Wards of Tokyo representing the largest geographic segment in terms of property acquisition price. The company derives nearly all of its income in the form of rental revenue from tenants. Finance and real estate, transportation, and retail companies are Orix JREIT's major customers.

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