Furniture Brands International, (FRA:FBN1) Operating Income : €-77.9 Mil (TTM As of Jun. 2013)

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What is Furniture Brands International, Operating Income?

Furniture Brands International,'s Operating Income for the three months ended in Jun. 2013 was €-32.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2013 was €-77.9 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Furniture Brands International,'s Operating Income for the three months ended in Jun. 2013 was €-32.7 Mil. Furniture Brands International,'s Revenue for the three months ended in Jun. 2013 was €193.3 Mil. Therefore, Furniture Brands International,'s Operating Margin % for the quarter that ended in Jun. 2013 was -16.94%.

Furniture Brands International,'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. Furniture Brands International,'s annualized ROC % for the quarter that ended in Jun. 2013 was -38.67%. Furniture Brands International,'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2013 was -56.98%.

Furniture Brands International, Operating Income Historical Data

The historical data trend for Furniture Brands International,'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.

Furniture Brands International, Operating Income Chart

Furniture Brands International, Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Operating Income

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-304.79

-118.46

-34.03

-33.86

-33.59

Furniture Brands International, Quarterly Data
	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13
Operating Income	Get a 7-Day Free Trial															-4.64	-12.28	-18.19	-14.69	-32.74

Furniture Brands International, 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. 2013 adds up the quarterly data reported by the company within the most recent 12 months, which was €-77.9 Mil.

Furniture Brands International, (FRA:FBN1) Operating Income Explanation

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

Furniture Brands International,'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: Mar. 2013 )	+	Invested Capital (Q: Jun. 2013 ))	/ count )
=	-130.944 * ( 1 - 8.85% )	/	( (329.222	+	288.049)	/ 2 )
=	-119.355456	/	308.6355
=	-38.67 %

where

	Invested Capital		(Q: Mar. 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	))
=	460.353	-	123.193	-	( 7.938	-	max(0, 123.193	-	289.675	+	7.938	))
=	329.222

	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	))
=	414.423	-	119.691	-	( 6.683	-	max(0, 119.691	-	268.883	+	6.683	))
=	288.049

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

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

Furniture Brands International,'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: Mar. 2013		Q: Jun. 2013
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-128.272	/	( ( (76.206 + max(158.544, 0))	+	(72.961 + max(142.509, 0)) )	/	2 )
=	-128.272	/	( ( 234.75	+	215.47 )	/	2 )
=	-128.272	/	225.11
=	-56.98 %

where Working Capital is:

	Working Capital		(Q: Mar. 2013 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(86.787	+	186.562	+	8.388)	-	(123.193	+	0	+	0)
=	158.544

	Working Capital		(Q: Jun. 2013 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(82.888	+	171.716	+	7.5959999999999)	-	(119.691	+	0	+	0)
=	142.509

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2013) EBIT data.

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

Furniture Brands International,'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 )
	=	-32.736	/	193.278
	=	-16.94 %

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.

Furniture Brands International, Operating Income Related Terms

Thank you for viewing the detailed overview of Furniture Brands International,'s Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Furniture Brands International, (FRA:FBN1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Furniture Brands International, Inc. (FRA:FBN1) » Definitions » Operating Income

Traded in Other Exchanges

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Address

Website

http://www.furniturebrands.com

Furniture Brands International, Inc., is a Delaware corporation, which was organized in 1921 as a holding company. The Company is engaged in designing, manufacturing, sourcing and retailing of home furnishings. It markets products through a wide range of channels, including its own Thomasville retail stores and through interior designers, multi-line/independent retailers and mass merchant stores. Its portfolio includes Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and La Barge. Through these brands, the Company offers case goods, consisting of bedroom, dining room, and living room wood furniture; stationary upholstery products, consisting of sofas, loveseats, sectionals, and chairs; motion upholstered furniture, consisting of recliners and sleep sofas; occasional furniture, consisting of wood, metal and glass tables, accent pieces, home entertainment centers, and home office furniture; and decorative accessories and accent pieces. The Company's brands are featured in every price and product category in the residential furniture industry. Each of its brands targets specific customers in relation to style and price point. The raw materials used in manufacturing its products include lumber, veneers, plywood, fiberboard, particleboard, steel, paper, hardware, adhesives, finishing materials, glass, mirrored glass, fabrics, leathers, metals, stone, synthetics and upholstered filling material. The Company's products compete against domestic manufacturers, importers, and foreign manufacturers entering the United States market; as well as increased direct importing by some larger retailers. Its competitors include: Ashley Furniture Industries, Inc.; La-Z-Boy Incorporated; Ethan Allen Interiors Inc., and many other home furnishings retailers and manufacturers. The elements of competition include price, style, quality, service, brand and marketing.

Furniture Brands International, (FRA:FBN1) Headlines

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