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Ubisoft Entertainment (Ubisoft Entertainment) Operating Income : $-316 Mil (TTM As of Sep. 2023)


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What is Ubisoft Entertainment Operating Income?

Ubisoft Entertainment's Operating Income for the six months ended in Sep. 2023 was $17 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $-316 Mil.

Warning Sign:

Ubisoft Entertainment has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ubisoft Entertainment's Operating Income for the six months ended in Sep. 2023 was $17 Mil. Ubisoft Entertainment's Revenue for the six months ended in Sep. 2023 was $892 Mil. Therefore, Ubisoft Entertainment's Operating Margin % for the quarter that ended in Sep. 2023 was 1.94%.

Ubisoft Entertainment'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. Ubisoft Entertainment's annualized ROC % for the quarter that ended in Sep. 2023 was 2.30%. Ubisoft Entertainment's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 4.66%.


Ubisoft Entertainment Operating Income Historical Data

The historical data trend for Ubisoft Entertainment'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.

Ubisoft Entertainment Operating Income Chart

Ubisoft Entertainment Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 235.27 45.75 475.95 374.56 -564.03

Ubisoft Entertainment Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 30.35 346.15 -213.17 -333.51 17.29

Ubisoft Entertainment 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 Sep. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was $-316 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.


Ubisoft Entertainment  (OTCPK:UBSFY) Operating Income Explanation

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

Ubisoft Entertainment's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

ROC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=34.578 * ( 1 - -151.1% )/( (3385.225 + 4176.094)/ 2 )
=86.825358/3780.6595
=2.30 %

where

Invested Capital(Q: Mar. 2023 )
=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))
=5000.857 - 205.46 - ( 1596.253 - max(0, 791.113 - 2201.285+1596.253))
=3385.225

Invested Capital(Q: Sep. 2023 )
=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))
=5072.679 - 191.996 - ( 1393.383 - max(0, 1369.584 - 2074.173+1393.383))
=4176.094

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

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

Ubisoft Entertainment's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2023  Q: Sep. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=15.582/( ( (200.964 + max(-108.029, 0)) + (468.196 + max(-175.454, 0)) )/ 2 )
=15.582/( ( 200.964 + 468.196 )/ 2 )
=15.582/334.58
=4.66 %

where Working Capital is:

Working Capital(Q: Mar. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(287.259 + 19.807 + 229.658) - (205.46 + 0 + 439.293)
=-108.029

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(365.208 + 23.479 + 93.917) - (191.996 + 0 + 466.062)
=-175.454

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

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

Ubisoft Entertainment's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2023 )/Revenue (Q: Sep. 2023 )
=17.289/892.209
=1.94 %

* 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.


Ubisoft Entertainment Operating Income Related Terms

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Ubisoft Entertainment (Ubisoft Entertainment) Business Description

Address
2, Avenue Pasteur, Saint-Mande, FRA, 94160
Founded in 1986 in France by five brothers of the Guillemot family, Ubisoft is one of the largest independent video game publishers. Ubisoft employs a deep pool of developers at studios across the globe. The firm owns a number of well-known franchises, including Assassin's Creed, Far Cry, Tom Clancy's Rainbow Six and Ghost Recon, Rayman, Trials, and Just Dance. The Guillemot family and Tencent collectively own roughly 20% of Ubisoft shares, with the family holding over 20% and Tencent roughly 4% of the voting rights.

Ubisoft Entertainment (Ubisoft Entertainment) Headlines

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