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Layne Christensen Co (NAS:LAYN)
Operating Income
$-42.1 Mil (TTM As of Apr. 2015)

Layne Christensen Co's operating income for the three months ended in Apr. 2015 was $-7.7 Mil. Its operating income for the trailing twelve months (TTM) ended in Apr. 2015 was $-42.1 Mil.

Warning Sign:

Layne Christensen Co had operating loss over the past 3 years.

Operating margin is calculated as operating income divided by its revenue. Layne Christensen Co's operating income for the three months ended in Apr. 2015 was $-7.7 Mil. Layne Christensen Co's revenue for the three months ended in Apr. 2015 was $194.4 Mil. Therefore, Layne Christensen Co's operating margin for the quarter that ended in Apr. 2015 was -3.96%.

Layne Christensen Co's 3-Year average Growth Rate for operating margin was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt’s definition. Layne Christensen Co's annualized return on capital for the quarter that ended in Apr. 2015 was -12.59%. Layne Christensen Co's annualized return on capital (Joel Greenblatt’s) for the quarter that ended in Apr. 2015 was -3.35%.


Definition

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.

Layne Christensen Co's Operating Income for the fiscal year that ended in Jan. 2015 is calculated as

Operating Income(A: Jan. 2015 )
=Revenue-Cost of Goods Sold-Selling, General, & Admin. Expense
=797.601-682.559-122.24
-Research & Development-Depreciation, Depletion & Amortization-Others
-0-51.841--1.248
=-57.8

Layne Christensen Co's Operating Income for the quarter that ended in Apr. 2015 is calculated as

Operating Income(Q: Apr. 2015 )
=Revenue-Cost of Goods Sold-Selling, General, & Admin. Expense
=194.363-160.676-30.852
-Research & Development-Depreciation, Depletion & Amortization-Others (1)
-0-10.34-0.19
=-7.7

Operating Income(Q: Apr. 2015 )
=EBITDA-Depreciation, Depletion & Amortization-Others (2)
=8.462-10.34-5.817
=-7.7

Layne Christensen Co Operating Income for the trailing twelve months (TTM) ended in Apr. 2015 was -10.65 (Jul. 2014 ) + -5.451 (Oct. 2014 ) + -18.294 (Jan. 2015 ) + -7.695 (Apr. 2015 ) = $-42.1 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

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

Layne Christensen Co's annualized Return on Capital (ROC) for the quarter that ended in Apr. 2015 is calculated as:

Return on Capital (ROC)(Q: Apr. 2015 )
=NOPAT/Average Invested Capital
=Oper. Inc.*(1-Tax Rate)/( (Invested Capital (Q: Jan. 2015 ) + Invested Capital (Q: Apr. 2015 ))/2)
=-30.78 * ( 1 - -14.47% )/( (287.688 + 271.953)/2)
=-35.233866/279.8205
=-12.59 %

where

Invested Capital(Q: Jan. 2015 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt + Short-Term Debt + Total Equity - Cash
=132.137 + 0.142 + 181.215 - 25.806
=287.688

Invested Capital(Q: Apr. 2015 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt + Short-Term Debt + Total Equity - Cash
=161.775 + 0.118 + 166.67 - 56.61
=271.953

Note: The Operating Income data used here is four times the quarterly (Apr. 2015) operating income data.

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

Layne Christensen Co's annualized