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Signify NV (XAMS:LIGHT) Operating Income : €375 Mil (TTM As of Mar. 2024)


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What is Signify NV Operating Income?

Signify NV's Operating Income for the three months ended in Mar. 2024 was €64 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was €375 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Signify NV's Operating Income for the three months ended in Mar. 2024 was €64 Mil. Signify NV's Revenue for the three months ended in Mar. 2024 was €1,468 Mil. Therefore, Signify NV's Operating Margin % for the quarter that ended in Mar. 2024 was 4.36%.

Good Sign:

Signify NV operating margin is expanding. Margin expansion is usually a good sign.

Signify NV's 5-Year average Growth Rate for Operating Margin % was 2.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Signify NV's annualized ROC % for the quarter that ended in Mar. 2024 was 3.76%. Signify NV's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 35.11%.


Signify NV Operating Income Historical Data

The historical data trend for Signify NV'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.

Signify NV Operating Income Chart

Signify NV 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 387.00 410.00 503.00 719.00 369.00

Signify NV 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 60.00 89.00 132.00 90.00 64.00

Signify NV 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 €375 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.


Signify NV  (XAMS:LIGHT) Operating Income Explanation

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

Signify NV'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 )
=256 * ( 1 - 8.33% )/( (6221 + 6252)/ 2 )
=234.6752/6236.5
=3.76 %

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:

Signify NV'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 )
=316/( ( (633 + max(242, 0)) + (618 + max(307, 0)) )/ 2 )
=316/( ( 875 + 925 )/ 2 )
=316/900
=35.11 %

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)
=(967 + 1050 + 214) - (1372 + 0 + 617)
=242

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(982 + 1064 + 232) - (1505 + 0 + 466)
=307

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 %:

Signify NV'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 )
=64/1468
=4.36 %

* 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.


Signify NV Operating Income Related Terms

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Signify NV (XAMS:LIGHT) Business Description

Address
High Tech Campus 48, Eindhoven, NLD, 5656 AE
Signify NV is a Netherlands-based firm that provides lighting solutions. The company's product portfolio includes luminaires, lamps, light-emitting diode (LED) lamps, LED tubes, and decorative lighting. Its product application is very broad-based as it is used in almost every industry. The operating segments are Digital Solutions, Digital Products, and Conventional Products. The firm generates of its revenues from its Digital Solutions segment and operates mainly in Europe, the Americas, as well as other international markets.

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