Switch to:
Pep Boys - Manny Moe & Jack (NYSE:PBY)
Net Income
\$-9 Mil (TTM As of Oct. 2015)

Net Income is the net profit that a company earns after deducting all costs and losses including cost of goods, SGA, DDA, interest expenses, non-recurring items and tax. Pep Boys - Manny Moe & Jack's net income for the three months ended in Oct. 2015 was \$1 Mil. Its net income for the trailing twelve months (TTM) ended in Oct. 2015 was \$-9 Mil.

Net Income is linked to the most popular earnings per share (EPS) number. Pep Boys - Manny Moe & Jack's diluted earnings per share (EPS) for the three months ended in Oct. 2015 was \$0.02.

Definition

Net Income is the net profit that a company earns after deducting all costs and losses including cost of goods, SGA, DDA, interest expenses, non-recurring items and tax.

Net Income
= Revenue - Cost of Goods Sold - Selling, General, & Admin. Expense - Research & Development - Depreciation, Depletion & Amortization - Interest Expense - Non-Recurring Items (NRI) - Tax Expense + Others
= Earnings Before Depreciation and Amortization - Depreciation, Depletion & Amortization - Interest Expense - Non-Recurring Items (NRI) - Tax Expense + Others
= Operating Income - Interest Expense - Non-Recurring Items (NRI) - Tax Expense + Others
= Pre-Tax Income - Tax Expense + Others

Pep Boys - Manny Moe & Jack's Net Income for the fiscal year that ended in Jan. 2015 is calculated as

 Net Income (A: Jan. 2015 ) = Pre-Tax Income + Tax Provision + Other Income (Minority Interest) + Net Income (Discontinued Operations) = -31.542 + 4.581 + 1.188 + -0.332 = -26

Pep Boys - Manny Moe & Jack's Net Income for the quarter that ended in Oct. 2015 is calculated as

 Net Income (Q: Oct. 2015 ) = Pre-Tax Income + Tax Provision + Other Income (Minority Interest) + Net Income (Discontinued Operations) = 1.553 + -0.476 + 0.345 + 0.189 = 2

Pep Boys - Manny Moe & Jack Net Income for the trailing twelve months (TTM) ended in Oct. 2015 was -26.668 (Jan. 2015 ) + 11.893 (Apr. 2015 ) + 4.81 (Jul. 2015 ) + 1.266 (Oct. 2015 ) = \$-9 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

Net income is the most widely cited number in reporting a companys profitability. It is linked to the most popular earnings-per-share (EPS) number through:

Pep Boys - Manny Moe & Jack's Earnings Per Share (EPS) for the quarter that ended in Oct. 2015 is calculated as

 Earnings Per Share (Q: Oct. 2015 ) = (Net Income - Preferred Dividends) / Total Shares Outstanding = (1.266 - 0) / 54.605 = 0.02

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a companys profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

EPS is most useful for companies that have:

 Consistent accounting methods
 And few restructurings

The dividend paid to preferred stocks needs to be subtracted from the total net income in the calculation of EPS because common stock holders are not entitled to that part of the net income.

Be Aware

Warren Buffett looks for consistency and upward long term trend. Because of share repurchase it is possible for net earnings trend to differ from EPS trend. He preferred net income over EPS. The companies with durable competitive advantage companies report higher % net earnings to total revenues.

Important: If a company is showing net earnings history greater than 20% on total revenues, it is probably benefiting from a long term competitive advantage.

If net earnings is less than 10%, likely to be in a highly competitive business.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Pep Boys - Manny Moe & Jack Annual Data

 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Net Income -38 -3 -41 -30 23 37 29 13 7 -27

Pep Boys - Manny Moe & Jack Quarterly Data

 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Net Income 5 1 -3 2 -0 -2 -27 12 5 1
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)