Corinthian Colleges (FRA:CH7) Operating Income : €39 Mil (TTM As of Jun. 2013)

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What is Corinthian Colleges Operating Income?

Corinthian Colleges's Operating Income for the six months ended in Jun. 2013 was €39 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2013 was €39 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Corinthian Colleges's Operating Income for the six months ended in Jun. 2013 was €39 Mil. Corinthian Colleges's Revenue for the six months ended in Jun. 2013 was €1,213 Mil. Therefore, Corinthian Colleges's Operating Margin % for the quarter that ended in Jun. 2013 was 3.22%.

Corinthian Colleges'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. Corinthian Colleges's annualized ROC % for the quarter that ended in Jun. 2013 was 4.70%. Corinthian Colleges's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2013 was 11.49%.

Corinthian Colleges Operating Income Historical Data

The historical data trend for Corinthian Colleges'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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Corinthian Colleges Operating Income Chart

Corinthian Colleges Annual Data

Trend

Jun04

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Operating Income

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85.16

196.93

-57.63

33.59

39.07

Corinthian Colleges Semi-Annual Data
	Jun98	Jun99	Jun00	Jun01	Jun02	Jun03	Jun04	Jun05	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13
Operating Income	Get a 7-Day Free Trial											85.16	196.93	-57.63	33.59	39.07

Corinthian Colleges 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.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Jun. 2013 was €39 Mil.

Corinthian Colleges (FRA:CH7) Operating Income Explanation

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

Corinthian Colleges's annualized ROC % for the quarter that ended in Jun. 2013 is calculated as:

	ROC % (Q: Jun. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2012 )	+	Invested Capital (Q: Jun. 2013 ))	/ count )
=	39.068 * ( 1 - 19.8% )	/	( (684.567	+	647.874)	/ 2 )
=	31.332536	/	666.2205
=	4.70 %

where

	Invested Capital		(Q: Jun. 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	))
=	855.198	-	137.124	-	( 57.802	-	max(0, 236.925	-	270.432	+	57.802	))
=	684.567

	Invested Capital		(Q: Jun. 2013 )
=	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	))
=	779.788	-	105.518	-	( 35.32	-	max(0, 190.443	-	216.839	+	35.32	))
=	647.874

Note: The Operating Income data used here is one times the annual (Jun. 2013) data.

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

Corinthian Colleges's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2013 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2013 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2012		Q: Jun. 2013
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	21.521	/	( ( (200.701 + max(-42.378, 0))	+	(173.984 + max(-23.377, 0)) )	/	2 )
=	21.521	/	( ( 200.701	+	173.984 )	/	2 )
=	21.521	/	187.3425
=	11.49 %

where Working Capital is:

	Working Capital		(Q: Jun. 2012 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(77.151	+	0	+	114.136)	-	(137.124	+	87.475	+	9.066)
=	-42.378

	Working Capital		(Q: Jun. 2013 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(58.283	+	0	+	105.066)	-	(105.518	+	81.208	+	2.8421709430404E-14)
=	-23.377

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Jun. 2013) EBIT data.

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

Corinthian Colleges's Operating Margin % for the quarter that ended in Jun. 2013 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2013 )	/	Revenue (Q: Jun. 2013 )
	=	39.068	/	1212.955
	=	3.22 %

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.

Corinthian Colleges Operating Income Related Terms

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Corinthian Colleges (FRA:CH7) Business Description

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Website

http://www.cci.edu

Corinthian Colleges Inc is a post-secondary education company in the United States and Canada. It offers diploma programs and associate, bachelors and master's degrees through a single operating segment. As of June 30, 2013, it has a student enrollment of 81,284 and operated 97 schools in 25 states, and 14 schools in the province of Ontario, Canada. The Company has acquired 76 colleges including the Heald acquisition and has opened 35 branch campuses. Its training program areas include healthcare, criminal justice, business, mechanical, trades, and information technology. The Company's diploma programs provide students with the requisite knowledge and job skills for entry-level positions in their chosen career.Key elements of its operating strategy includes emphasize Student Outcomes, create an Effective Learning Environment, focus on Attractive Markets, manage School and Program Performance, Standardize Key Business Processes and Centralize Key Functions.

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