Craft Brew Alliance (Craft Brew Alliance) Operating Income : $-11.1 Mil (TTM As of Jun. 2020)

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What is Craft Brew Alliance Operating Income?

Craft Brew Alliance's Operating Income for the three months ended in Jun. 2020 was $0.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2020 was $-11.1 Mil.

Warning Sign:

Craft Brew Alliance Inc had operating loss over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Craft Brew Alliance's Operating Income for the three months ended in Jun. 2020 was $0.8 Mil. Craft Brew Alliance's Revenue for the three months ended in Jun. 2020 was $49.4 Mil. Therefore, Craft Brew Alliance's Operating Margin % for the quarter that ended in Jun. 2020 was 1.70%.

Craft Brew Alliance's 5-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. Craft Brew Alliance's annualized ROC % for the quarter that ended in Jun. 2020 was 0.82%. Craft Brew Alliance's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2020 was 2.64%.

Craft Brew Alliance Operating Income Historical Data

The historical data trend for Craft Brew Alliance'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.

Craft Brew Alliance Operating Income Chart

Craft Brew Alliance Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Operating Income

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4.26

0.38

4.80

5.75

-18.12

Craft Brew Alliance Quarterly Data
	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20
Operating Income	Get a 7-Day Free Trial															3.91	-3.16	-9.48	0.72	0.84

Craft Brew Alliance 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 Jun. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $-11.1 Mil.

Craft Brew Alliance (NAS:BREW) Operating Income Explanation

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

Craft Brew Alliance's annualized ROC % for the quarter that ended in Jun. 2020 is calculated as:

	ROC % (Q: Jun. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2020 )	+	Invested Capital (Q: Jun. 2020 ))	/ count )
=	3.36 * ( 1 - 42.31% )	/	( (231.929	+	238.004)	/ 2 )
=	1.938384	/	234.9665
=	0.82 %

where

	Invested Capital		(Q: Mar. 2020 )
=	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	))
=	260.594	-	28.57	-	( 0.095	-	max(0, 35.986	-	49.889	+	0.095	))
=	231.929

	Invested Capital		(Q: Jun. 2020 )
=	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	))
=	269.621	-	31.479	-	( 0.138	-	max(0, 38.811	-	56.638	+	0.138	))
=	238.004

Note: The Operating Income data used here is four times the quarterly (Jun. 2020) data.

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

Craft Brew Alliance's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2020 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2020 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2020		Q: Jun. 2020
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	4.164	/	( ( (139.214 + max(15.238, 0))	+	(141.669 + max(19.133, 0)) )	/	2 )
=	4.164	/	( ( 154.452	+	160.802 )	/	2 )
=	4.164	/	157.627
=	2.64 %

where Working Capital is:

	Working Capital		(Q: Mar. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(21.453	+	23.004	+	5.337)	-	(28.57	+	3.248	+	2.738)
=	15.238

	Working Capital		(Q: Jun. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(30.156	+	21.862	+	4.482)	-	(31.479	+	3.248	+	2.64)
=	19.133

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2020) EBIT data.

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

Craft Brew Alliance's Operating Margin % for the quarter that ended in Jun. 2020 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2020 )	/	Revenue (Q: Jun. 2020 )
	=	0.84	/	49.378
	=	1.70 %

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.

Craft Brew Alliance Operating Income Related Terms

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Craft Brew Alliance (Craft Brew Alliance) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Craft Brew Alliance Inc (NAS:BREW) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

929 North Russell Street, Portland, OR, USA, 97227-1733

Website

http://www.craftbrew.com

Craft Brew Alliance Inc is a craft brewing company and a leader in brewing, and branding American craft beers. The company's brand portfolio consists of Redhook Brewery, Widmer Brothers Brewing, Kona Brewing Company, Omission Beer, Square Mile Cider Company, and Resignation Brewery. The crafts beers are brewed and packed in the location such as Portland, Oregon the Seattle suburb of Woodinville, Washington; Portsmouth, New Hampshire, and Kailua-Kona, Hawaii. Its segments are Beer Related operations and Brewpubs operations. The majority of the revenue is derived from brewing, and domestic and international sales, of craft beers and ciders.

Executives

Matthew Edgar Gilbertson	director	125 WEST 24TH STREET NEW YORK NY 10011
Timothy P Boyle	director	14375 NW SCIENCE PARK DRIVE, PORTLAND OR 97229
Christine Nicol Perich	officer: Chief Financial & Strategy Off	1413 LINDEN LAKE ROAD FORT COLLINS CO 80524
Jacqueline S Woodward	director	180 LINDEN ROAD PINEHURST NC 28374
Edwin A Smith	officer: Principal Accounting Officer	929 NORTH RUSSELL STREET PORTLAND OR 97227
Nickolas A Mills	director	ONE BUSCH PLACE ST. LOUIS MO 63118
Derek Y Hahm	officer: Chief Commercial Officer	929 NORTH RUSSELL STREET PORTLAND OR 97227
J Scott Mennen	officer: Chief Operating Officer	929 NORTH RUSSELL STREET PORTLAND OR 97227
Kenneth C Kunze	officer: Chief Marketing Officer	929 NORTH RUSSELL STREET PORTLAND OR 97227
Andrew J. Thomas	officer: Chief Executive Officer	929 N. RUSSELL STREET PORTLAND OR 97227
Marc J Cramer	director	P.O. BOX 4525 PORTLAND OR 97208
Kevin R Kelly	director	929 NORTH RUSSELL STREET PORTLAND OR 97227
David R Lord	director	929 N RUSSELL STREET PORTLAND OR 97227
Paul D Davis	director	4211 WILLIAMS AVENUE NORTH RENTON WA 98056
Vieira Joao Paulo Falcao	director	125 WEST 24TH STREET NEW YORK NY 10011