Martha Stewart Living Omnimedia (FRA:MLV) Operating Income : €0.15 Mil (TTM As of Sep. 2015)

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What is Martha Stewart Living Omnimedia Operating Income?

Martha Stewart Living Omnimedia's Operating Income for the three months ended in Sep. 2015 was €-1.14 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2015 was €0.15 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Martha Stewart Living Omnimedia's Operating Income for the three months ended in Sep. 2015 was €-1.14 Mil. Martha Stewart Living Omnimedia's Revenue for the three months ended in Sep. 2015 was €15.56 Mil. Therefore, Martha Stewart Living Omnimedia's Operating Margin % for the quarter that ended in Sep. 2015 was -7.33%.

Warning Sign:

Martha Stewart Living Omnimedia Inc operating margin has been in 5-year decline. The average rate of decline per year is -4.6%.

Martha Stewart Living Omnimedia's 5-Year average Growth Rate for Operating Margin % was -4.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Martha Stewart Living Omnimedia's annualized ROC % for the quarter that ended in Sep. 2015 was -11.63%. Martha Stewart Living Omnimedia's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2015 was -124.71%.

Martha Stewart Living Omnimedia Operating Income Historical Data

The historical data trend for Martha Stewart Living Omnimedia'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.

Martha Stewart Living Omnimedia Operating Income Chart

Martha Stewart Living Omnimedia Annual Data

Trend

Dec05

Dec06

Dec07

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Dec09

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Dec13

Dec14

Operating Income

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-6.55

-14.13

-42.97

-1.39

-6.35

Martha Stewart Living Omnimedia Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
Operating Income	Get a 7-Day Free Trial															-11.52	5.65	-2.17	-2.18	-1.14

Martha Stewart Living Omnimedia 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. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was €0.15 Mil.

Martha Stewart Living Omnimedia (FRA:MLV) Operating Income Explanation

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

Martha Stewart Living Omnimedia's annualized ROC % for the quarter that ended in Sep. 2015 is calculated as:

	ROC % (Q: Sep. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2015 )	+	Invested Capital (Q: Sep. 2015 ))	/ count )
=	-4.56 * ( 1 - -26.49% )	/	( (49.246	+	49.975)	/ 2 )
=	-5.767944	/	49.6105
=	-11.63 %

where

	Invested Capital		(Q: Jun. 2015 )
=	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	))
=	93.469	-	11.214	-	( 43.846	-	max(0, 24.823	-	57.832	+	43.846	))
=	49.246

	Invested Capital		(Q: Sep. 2015 )
=	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	))
=	87.781	-	6.945	-	( 37.272	-	max(0, 21.66	-	52.521	+	37.272	))
=	49.975

Note: The Operating Income data used here is four times the quarterly (Sep. 2015) data.

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

Martha Stewart Living Omnimedia's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2015 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2015 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2015		Q: Sep. 2015
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-4.56	/	( ( (3.84 + max(-10.837, 0))	+	(3.473 + max(-6.411, 0)) )	/	2 )
=	-4.56	/	( ( 3.84	+	3.473 )	/	2 )
=	-4.56	/	3.6565
=	-124.71 %

where Working Capital is:

	Working Capital		(Q: Jun. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(12.277	+	0	+	1.709)	-	(11.214	+	13.609	+	0)
=	-10.837

	Working Capital		(Q: Sep. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(12.784	+	0	+	2.465)	-	(6.945	+	14.715	+	0)
=	-6.411

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2015) EBIT data.

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

Martha Stewart Living Omnimedia's Operating Margin % for the quarter that ended in Sep. 2015 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2015 )	/	Revenue (Q: Sep. 2015 )
	=	-1.14	/	15.557
	=	-7.33 %

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.

Martha Stewart Living Omnimedia Operating Income Related Terms

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Martha Stewart Living Omnimedia (FRA:MLV) Business Description

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http://www.marthastewart.com

Martha Stewart Living Omnimedia Inc is an integrated media and merchandising company providing consumers with inspiring lifestyle content and well-designed, high-quality products. The Company is organized into three business segments: Publishing, Broadcasting and Merchandising. This combination enables it to cross-promote its content and products. Its Publishing segment consists of operations related to magazine and book publishing and digital distribution, mainly through its website, marthastewart.com. Its Broadcasting business segment consists of operations relating to the production of television programming, the domestic and international distribution of its library of programming in existing and repurposed formats. Its Merchandising segment consists of operations related to the design of merchandise and related packaging, collateral and advertising materials, and the licensing of various proprietary trademarks in connection with retail programs conducted through a number of retailers and manufacturers. The Company generally owns the copyrights in the programs it produce for television and radio distribution. In 2013, Martha Stewart's Cooking School season 2 and Martha Bakes seasons 1 and 2 aired on PBS. On January 31, 2013, the Company entered into a new two-year agreement with Sirius XM Radio to produce approximately 10 hours of original programming each week. This agreement with Sirius XM Radio replaces its historical Martha Stewart Living Radio channel with a daily radio show hosted by Martha Stewart, and other MSLO talent, on SiriusXM Stars. In 2010, the Company launched the Martha Stewart Living product line at The Home Depot, which is currently available at all of The Home Depots stores in the United States and Canada, as well as on homedepot.com and Home Decorators Collection catalog business. It competes with the internet businesses of the stores and other websites that sell similar retail goods.

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