WestRock Co (WestRock Co) Operating Income : $1,047 Mil (TTM As of Mar. 2024)

View and export this data going back to 1994. Start your Free Trial

What is WestRock Co Operating Income?

WestRock Co's Operating Income for the three months ended in Mar. 2024 was $202 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $1,047 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. WestRock Co's Operating Income for the three months ended in Mar. 2024 was $202 Mil. WestRock Co's Revenue for the three months ended in Mar. 2024 was $4,727 Mil. Therefore, WestRock Co's Operating Margin % for the quarter that ended in Mar. 2024 was 4.27%.

Warning Sign:

WestRock Co operating margin has been in a 5-year decline. The average rate of decline per year is -4%.

WestRock Co's 5-Year average Growth Rate for Operating Margin % was -4.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. WestRock Co's annualized ROC % for the quarter that ended in Mar. 2024 was 8.55%. WestRock Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 4.23%.

WestRock Co Operating Income Historical Data

The historical data trend for WestRock 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.

WestRock Co Operating Income Chart

WestRock Co Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

Get a 7-Day Free Trial

1,633.60

1,172.30

1,446.70

1,893.20

1,218.90

WestRock 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															334.90	389.90	305.30	149.70	201.60

WestRock 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 $1,047 Mil.

WestRock Co (NYSE:WRK) Operating Income Explanation

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

WestRock 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 )
=	806.4 * ( 1 - -156.25% )	/	( (24098.9	+	24251.3)	/ 2 )
=	2066.4	/	24175.1
=	8.55 %

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	))
=	26746.2	-	2159.2	-	( 488.1	-	max(0, 3968.8	-	6146.1	+	488.1	))
=	24098.9

	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	))
=	26884	-	2138	-	( 494.7	-	max(0, 4737.4	-	6343.3	+	494.7	))
=	24251.3

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

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

WestRock 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 )
=	572.4	/	( ( (11230.2 + max(2151.5, 0))	+	(11240.7 + max(2428.7, 0)) )	/	2 )
=	572.4	/	( ( 13381.7	+	13669.4 )	/	2 )
=	572.4	/	13525.55
=	4.23 %

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)
=	(2439.9	+	2391.3	+	826.8)	-	(2159.2	+	0	+	1347.3)
=	2151.5

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2583.7	+	2328.4	+	936.5)	-	(2138	+	0	+	1281.9)
=	2428.7

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 %:

WestRock 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 )
	=	201.6	/	4726.7
	=	4.27 %

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.

WestRock Co Operating Income Related Terms

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

WestRock Co (WestRock Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » WestRock Co (NYSE:WRK) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

1WR:Germany 1WR:Germany

Address

1000 Abernathy Road, North East, Atlanta, GA, USA, 30328

Website

https://www.westrock.com

WestRock manufactures corrugated packaging and consumer packaging, such as folding cartons and paperboard. After the merger of RockTenn and MeadWestvaco in fall 2015, WestRock became the largest North American producer of solid bleached sulfate and the second-largest producer of containerboard, which is used in the production of shipping containers.

Executives

Currey M Russell	director	PO BOX 4098, NORCROSS GA 30091
John L O'neal	officer: President, Global Paper	1155 PERIMETER CENTER WEST, ATLANTA GA 30338
James E Nevels	director	C/O TASTY BAKING COMPANY, NAVY YARD CORP. CTR., THREE CRESCENT DR., PHILADELPHIA PA 19112
Samuel W. Shoemaker	officer: President, Consumer Packaging	1000 ABERNATHY ROAD NE, SUITE 125, ATLANTA GA 30328
Dmitri L Stockton	director	777 LONG RIDGE ROAD, SYNCHRONY FINANCIAL C/O CORP. SECRETARY, STAMFORD CT 06902
Thomas Stigers	officer: President, Mill Operations	1000 ABERNATHY ROAD NE, SUITE 125, ATLANTA GA 30328
Denise R Singleton	officer: EVP, GC and Secretary	3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Jean Savage	director	14221 N DALLAS PARKWAY, SUITE 1100, DALLAS TX 75254
David B Sewell	officer: Chief Executive Officer	101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Alexander W Pease	officer: Chief Financial Officer	5605 CARNEGIE BOULEVARD, SUTIE 500, CHARLOTTE NC 28209
Patrick M. Kivits	officer: Pres, Consumer PKG	1200 WILLOW LAKE BLVD., P.O. BOX 64683, ST. PAUL MN 55110
Peter C Durette	officer: President, Corrugated Pkg.	MEADWESTVACO, 501 SOUTH 5TH STREET, RICHMOND VA 23219-0501
Jeffrey Wayne Chalovich	officer: President - Corrugated Pkging	504 THRASHER STREET, NORCROSS GA 30071
Steven C Voorhees	director, officer: CEO - President	214 N TRYON STREET, CHARLOTTE NC 28202
Patrick Edward Lindner	officer: President, Consumer Packaging	501 SOUTH 5TH STREET, RICHMOND VA 23219