Franchise Services of North America (Franchise Services of North America) Operating Income : $-0.12 Mil (TTM As of Mar. 2017)

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What is Franchise Services of North America Operating Income?

Franchise Services of North America's Operating Income for the three months ended in Mar. 2017 was $-0.00 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2017 was $-0.12 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Franchise Services of North America's Operating Income for the three months ended in Mar. 2017 was $-0.00 Mil. Franchise Services of North America's Revenue for the three months ended in Mar. 2017 was $2.58 Mil. Therefore, Franchise Services of North America's Operating Margin % for the quarter that ended in Mar. 2017 was -0.04%.

Franchise Services of North America'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. Franchise Services of North America's annualized ROC % for the quarter that ended in Mar. 2017 was -0.07%. Franchise Services of North America's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2017 was -1.81%.

Franchise Services of North America Operating Income Historical Data

The historical data trend for Franchise Services of North America'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.

Franchise Services of North America Operating Income Chart

Franchise Services of North America Annual Data

Trend

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

Operating Income

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-1.78

26.79

0.36

0.32

-0.08

Franchise Services of North America Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Operating Income	Get a 7-Day Free Trial															-0.22	-0.15	-0.09	0.13	-

Franchise Services of North America 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 Mar. 2017 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.12 Mil.

Franchise Services of North America (OTCPK:FCHAF) Operating Income Explanation

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

Franchise Services of North America's annualized ROC % for the quarter that ended in Mar. 2017 is calculated as:

	ROC % (Q: Mar. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2016 )	+	Invested Capital (Q: Mar. 2017 ))	/ count )
=	-0.004 * ( 1 - 0% )	/	( (5.911	+	5.636)	/ 2 )
=	-0.004	/	5.7735
=	-0.07 %

where

	Invested Capital		(Q: Dec. 2016 )
=	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	))
=	9.957	-	16.266	-	( 1.02	-	max(0, 17.105	-	4.885	+	1.02	))
=	5.911

	Invested Capital		(Q: Mar. 2017 )
=	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	))
=	9.435	-	15.855	-	( 0.894	-	max(0, 16.588	-	4.532	+	0.894	))
=	5.636

Note: The Operating Income data used here is four times the quarterly (Mar. 2017) data.

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

Franchise Services of North America's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2017 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2017 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2016		Q: Mar. 2017
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-0.004	/	( ( (0.229 + max(-13.211, 0))	+	(0.212 + max(-12.988, 0)) )	/	2 )
=	-0.004	/	( ( 0.229	+	0.212 )	/	2 )
=	-0.004	/	0.2205
=	-1.81 %

where Working Capital is:

	Working Capital		(Q: Dec. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.59	+	0	+	2.096)	-	(16.266	+	0.218	+	0.413)
=	-13.211

	Working Capital		(Q: Mar. 2017 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.59	+	0	+	1.871)	-	(15.855	+	0.217	+	0.377)
=	-12.988

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2017) EBIT data.

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

Franchise Services of North America's Operating Margin % for the quarter that ended in Mar. 2017 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2017 )	/	Revenue (Q: Mar. 2017 )
	=	-0.001	/	2.58
	=	-0.04 %

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.

Franchise Services of North America Operating Income Related Terms

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Franchise Services of North America (Franchise Services of North America) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Franchise Services of North America Inc (OTCPK:FCHAF) » Definitions » Operating Income

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Address

1052 Highland Colony Parkway, Suite 204, Ridgeland, MS, USA, 39157

Website

http://www.fsna-inc.com

Franchise Services of North America Inc is a car rental franchisor in North America. The firm operates in the car, van and light truck rental space, alongside a range of insurance products, both business and personal, to its franchisees, the automobile industry, and consumers. It operates through its subsidiary, U-Save Auto Rental of America Inc. (U-Save). Its segments include Franchise, Insurance and Other. The Franchise segment is engaged in franchising to operate U-Save Auto Rental businesses in the United States. The Insurance segment which generates majority revenue is engaged in providing franchisees and independent auto rental operators with financial services related to insurance products in the United States.

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