CarePayment Technologies (CarePayment Technologies) Operating Income : $-4.67 Mil (TTM As of Dec. 2012)

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What is CarePayment Technologies Operating Income?

CarePayment Technologies's Operating Income for the three months ended in Dec. 2012 was $-1.50 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2012 was $-4.67 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. CarePayment Technologies's Operating Income for the three months ended in Dec. 2012 was $-1.50 Mil. CarePayment Technologies's Revenue for the three months ended in Dec. 2012 was $1.54 Mil. Therefore, CarePayment Technologies's Operating Margin % for the quarter that ended in Dec. 2012 was -97.47%.

CarePayment Technologies'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. CarePayment Technologies's annualized ROC % for the quarter that ended in Dec. 2012 was -41.93%. CarePayment Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2012 was -588.02%.

CarePayment Technologies Operating Income Historical Data

The historical data trend for CarePayment Technologies'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.

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CarePayment Technologies Operating Income Chart

CarePayment Technologies Annual Data

Trend

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Dec12

Operating Income

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-4.06

-0.40

-3.10

-4.33

-4.67

CarePayment Technologies Quarterly Data
	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12
Operating Income	Get a 7-Day Free Trial															-1.45	-0.84	-1.16	-1.17	-1.50

CarePayment Technologies 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 Dec. 2012 adds up the quarterly data reported by the company within the most recent 12 months, which was $-4.67 Mil.

CarePayment Technologies (OTCPK:CPYT) Operating Income Explanation

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

CarePayment Technologies's annualized ROC % for the quarter that ended in Dec. 2012 is calculated as:

	ROC % (Q: Dec. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2012 )	+	Invested Capital (Q: Dec. 2012 ))	/ count )
=	-6.012 * ( 1 - 0.03% )	/	( (9.591	+	19.078)	/ 2 )
=	-6.0101964	/	14.3345
=	-41.93 %

where

	Invested Capital		(Q: Sep. 2012 )
=	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	))
=	10.062	-	1.665	-	( 0.285	-	max(0, 1.714	-	0.52	+	0.285	))
=	9.591

	Invested Capital		(Q: Dec. 2012 )
=	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	))
=	10.237	-	1.448	-	( 0.263	-	max(0, 11.018	-	0.729	+	0.263	))
=	19.078

Note: The Operating Income data used here is four times the quarterly (Dec. 2012) data.

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

CarePayment Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2012 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2012 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2012		Q: Dec. 2012
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-5.892	/	( ( (0.987 + max(-1.59, 0))	+	(1.017 + max(-4.159, 0)) )	/	2 )
=	-5.892	/	( ( 0.987	+	1.017 )	/	2 )
=	-5.892	/	1.002
=	-588.02 %

where Working Capital is:

	Working Capital		(Q: Sep. 2012 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.124	+	0	+	0)	-	(1.665	+	0.049	+	0)
=	-1.59

	Working Capital		(Q: Dec. 2012 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0.128)	-	(1.448	+	0.051	+	2.788)
=	-4.159

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2012) EBIT data.

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

CarePayment Technologies's Operating Margin % for the quarter that ended in Dec. 2012 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2012 )	/	Revenue (Q: Dec. 2012 )
	=	-1.503	/	1.542
	=	-97.47 %

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.

CarePayment Technologies Operating Income Related Terms

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CarePayment Technologies (CarePayment Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » CarePayment Technologies Inc (OTCPK:CPYT) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

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Address

5300 Meadows Road, Suite 400, Lake Oswego, OR, USA, 97035

Website

http://www.carepayment.com

CarePayment Technologies Inc is a healthcare finance company. It helps people manage their medical expenses. CarePayment provides patient finance solutions to hospitals, physician practices, and ancillary service providers nationwide. The company offer patients finance options that help people get the care needed, and whenever needed.

Executives

Paulson Capital Corp	other: See Footnote (1)	222 THIRD STREET, SUITE 2241, CAMBRIDGE MA 02142
Jacqueline M Paulson	other: See Footnote (1)	811 SW NAITO PARKWAY, SUITE 200, PORTLAND OR 97204
Paulson Chester L F	other: See Footnote (1)	811 SW NAITO PARKWAY, SUITE 200, PORTLAND OR 97204

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