Capella Education Co (Capella Education Co) Operating Income : $66.5 Mil (TTM As of Jun. 2018)

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What is Capella Education Co Operating Income?

Capella Education Co's Operating Income for the three months ended in Jun. 2018 was $16.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2018 was $66.5 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Capella Education Co's Operating Income for the three months ended in Jun. 2018 was $16.0 Mil. Capella Education Co's Revenue for the three months ended in Jun. 2018 was $111.6 Mil. Therefore, Capella Education Co's Operating Margin % for the quarter that ended in Jun. 2018 was 14.30%.

Capella Education Co'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. Capella Education Co's annualized ROC % for the quarter that ended in Jun. 2018 was 38.78%. Capella Education Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2018 was 180.51%.

Capella Education Co Operating Income Historical Data

The historical data trend for Capella Education 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.

Capella Education Co Operating Income Chart

Capella Education Co Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Operating Income

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59.88

67.60

70.33

68.21

65.06

Capella Education Co Quarterly Data
	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18
Operating Income	Get a 7-Day Free Trial															15.37	13.76	18.33	18.45	15.95

Capella Education 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 Jun. 2018 adds up the quarterly data reported by the company within the most recent 12 months, which was $66.5 Mil.

Capella Education Co (NAS:CPLA) Operating Income Explanation

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

Capella Education Co's annualized ROC % for the quarter that ended in Jun. 2018 is calculated as:

	ROC % (Q: Jun. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2018 )	+	Invested Capital (Q: Jun. 2018 ))	/ count )
=	63.808 * ( 1 - 25.26% )	/	( (122.433	+	123.506)	/ 2 )
=	47.6900992	/	122.9695
=	38.78 %

where

	Invested Capital		(Q: Mar. 2018 )
=	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	))
=	290.788	-	24.885	-	( 161.244	-	max(0, 51.063	-	194.533	+	161.244	))
=	122.433

	Invested Capital		(Q: Jun. 2018 )
=	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	))
=	286.765	-	18.561	-	( 155.474	-	max(0, 45.032	-	189.73	+	155.474	))
=	123.506

Note: The Operating Income data used here is four times the quarterly (Jun. 2018) data.

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

Capella Education Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2018 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2018 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2018		Q: Jun. 2018
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	63.808	/	( ( (35.915 + max(-17.774, 0))	+	(34.781 + max(-10.776, 0)) )	/	2 )
=	63.808	/	( ( 35.915	+	34.781 )	/	2 )
=	63.808	/	35.348
=	180.51 %

where Working Capital is:

	Working Capital		(Q: Mar. 2018 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(23.798	+	0	+	9.491)	-	(24.885	+	15.789	+	10.389)
=	-17.774

	Working Capital		(Q: Jun. 2018 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(24.229	+	0	+	10.027)	-	(18.561	+	15.635	+	10.836)
=	-10.776

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2018) EBIT data.

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

Capella Education Co's Operating Margin % for the quarter that ended in Jun. 2018 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2018 )	/	Revenue (Q: Jun. 2018 )
	=	15.952	/	111.563
	=	14.30 %

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.

Capella Education Co Operating Income Related Terms

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

Capella Education Co (Capella Education Co) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Capella Education Co (NAS:CPLA) » Definitions » Operating Income

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Address

Website

http://www.capellaeducation.com

Capella Education Co is an American for-profit education company that operates online universities and various educational programs. The company's flagship offering, Capella University, operates various bachelor's, master's, and doctoral degree programs with close to 35,000 students enrolled. Master's degree programs represent approximately 50% of the university's degree programs in areas such as technology, business, healthcare, and psychology. Capella University focuses on mid-career professionals with an average student age of 39 years. Enrollment and fees from Capella University are the largest source of revenue, followed by other educational programs. A large portion of the company's revenue is made possible by federal financial aid programs such as Pell Fund Grants.

Executives

Jody Miller	director	225 SOUTH SIXTH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Peter M Ramstad	officer: SVP & Chief HR Officer	225 SOUTH 6TH ST, 9TH FLOOR, MINNEAPOLIS MN 55402
Andrew E Watt	officer: Senior Vice President	225 SOUTH SIXTH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Michael Linton	director	C/O LOANDEPOT, INC. ATTN GENERAL COUNSEL, 26642 TOWNE CENTRE DRIVE, FOOTHILL RANCH CA 92610
H James Dallas	director	127 PUBLIC SQUARE, CLEVELAND OH 44114
J Kevin Gilligan	director, officer: Chairman & CEO	P O BOX 1441, MINNEAPOLIS MN 55440-1441
Rita D Brogley	director	225 SOUTH 6TH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Steve Polacek	officer: SVP & CFO	4106 SUNNYSIDE ROAD, EDINA MN 55424
Matthew Wagner Ferguson	director	C/O ECHO GLOBAL LOGISTICS, INC. 600 W CHICAGO AVE, SUITE 725 CHICAGO IL 60654
Stephen G Shank	director	C/O CAPELLA EDUCATION CO, 222 S 9TH ST, MINNEAPOLIS MN 55402
Andrew M Slavitt	director	225 SOUTH 6TH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Mark N Greene	director	901 MARQUETTE AVENUE, SUITE 3200, MINNEAPOLIS MN 55402
Sandra E Taylor	director	265 TURNER DRIVE, DURANGO CO 81303
Amy L Ronneberg	officer: Vice President & Controller	225 SOUTH 6TH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
Lois M Martin	officer: Sr VP & CFO	PO BOX 1101, ADC TELCOMMUNICATIONS INC, MINNEAPOLIS MN 55440-1104