Ashley (Laura) Holdings (LSE:ALY) Operating Income : £-12.9 Mil (TTM As of Dec. 2019)

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What is Ashley (Laura) Holdings Operating Income?

Ashley (Laura) Holdings's Operating Income for the six months ended in Dec. 2019 was £-2.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2019 was £-12.9 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ashley (Laura) Holdings's Operating Income for the six months ended in Dec. 2019 was £-2.9 Mil. Ashley (Laura) Holdings's Revenue for the six months ended in Dec. 2019 was £109.6 Mil. Therefore, Ashley (Laura) Holdings's Operating Margin % for the quarter that ended in Dec. 2019 was -2.65%.

Ashley (Laura) Holdings'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. Ashley (Laura) Holdings's annualized ROC % for the quarter that ended in Dec. 2019 was -7.41%. Ashley (Laura) Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 was -9.27%.

Ashley (Laura) Holdings Operating Income Historical Data

The historical data trend for Ashley (Laura) Holdings'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.

Ashley (Laura) Holdings Operating Income Chart

Ashley (Laura) Holdings Annual Data

Trend

Jan09

Jan10

Jan11

Jan12

Jan13

Jan14

Jan15

Jun17

Jun18

Jun19

Operating Income

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19.10

23.80

10.90

6.40

-9.50

Ashley (Laura) Holdings Semi-Annual Data
	Jul09	Jan10	Jul10	Jan11	Jul11	Jan12	Jul12	Jan13	Jul13	Jan14	Jul14	Jan15	Jul15	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19
Operating Income	Get a 7-Day Free Trial															4.80	1.60	0.50	-10.00	-2.90

Ashley (Laura) Holdings 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. 2019 adds up the semi-annually data reported by the company within the most recent 12 months, which was £-12.9 Mil.

Ashley (Laura) Holdings (LSE:ALY) Operating Income Explanation

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

Ashley (Laura) Holdings's annualized ROC % for the quarter that ended in Dec. 2019 is calculated as:

	ROC % (Q: Dec. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2019 )	+	Invested Capital (Q: Dec. 2019 ))	/ count )
=	-5.8 * ( 1 - 0% )	/	( (54.2	+	102.4)	/ 2 )
=	-5.8	/	78.3
=	-7.41 %

where

	Invested Capital		(Q: Jun. 2019 )
=	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	))
=	74	-	19	-	( 0.8	-	max(0, 38.1	-	62.5	+	0.8	))
=	54.2

	Invested Capital		(Q: Dec. 2019 )
=	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	))
=	137.5	-	31.1	-	( 4.1	-	max(0, 54.4	-	58.4	+	4.1	))
=	102.4

Note: The Operating Income data used here is two times the semi-annual (Dec. 2019) data.

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

Ashley (Laura) Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2019 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2019		Q: Dec. 2019
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-6	/	( ( (7.6 + max(23.6, 0))	+	(75 + max(23.2, 0)) )	/	2 )
=	-6	/	( ( 31.2	+	98.2 )	/	2 )
=	-6	/	64.7
=	-9.27 %

where Working Capital is:

	Working Capital		(Q: Jun. 2019 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(5.7	+	46.7	+	9.3)	-	(19	+	0	+	19.1)
=	23.6

	Working Capital		(Q: Dec. 2019 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(11.2	+	43.1	+	0)	-	(31.1	+	0	+	-7.105427357601E-15)
=	23.2

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2019) EBIT data.

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

Ashley (Laura) Holdings's Operating Margin % for the quarter that ended in Dec. 2019 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2019 )	/	Revenue (Q: Dec. 2019 )
	=	-2.9	/	109.6
	=	-2.65 %

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.

Ashley (Laura) Holdings Operating Income Related Terms

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Ashley (Laura) Holdings (LSE:ALY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Ashley (Laura) Holdings PLC (LSE:ALY) » Definitions » Operating Income

Traded in Other Exchanges

N/A

Address

27 Bagleys Lane, Fulham, London, GBR, SW6 2QA

Website

http://www.lauraashley.com

Ashley (Laura) Holdings PLC is an international lifestyle brand, which specializes in retailing furniture, home accessories, decorating and fashion products. Its two operating segments are Retail and Non-Retail. Retail revenue reflects sales through its Stores; E-Commerce and Mail Order and Hotel. Its Non-retail revenue includes Licensing, Franchising, and Manufacturing. The company generates maximum revenue from the Retail segment which includes Stores. Geographically, it derives a majority of revenue from the UK, Ireland and France and also has a presence in Japan and the Rest of the World.

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