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Highway Capital (LSE:HWC) Operating Income : £-0.65 Mil (TTM As of Aug. 2022)


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What is Highway Capital Operating Income?

Highway Capital's Operating Income for the six months ended in Aug. 2022 was £-0.24 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2022 was £-0.65 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Highway Capital's Operating Income for the six months ended in Aug. 2022 was £-0.24 Mil. Highway Capital's Revenue for the six months ended in Aug. 2022 was £0.00 Mil. Therefore, Highway Capital's Operating Margin % for the quarter that ended in Aug. 2022 was %.

Highway Capital'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. Highway Capital's annualized ROC % for the quarter that ended in Aug. 2022 was -56.74%. Highway Capital's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2022 was %.


Highway Capital Operating Income Historical Data

The historical data trend for Highway Capital'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.

Highway Capital Operating Income Chart

Highway Capital Annual Data
Trend Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.03 -0.25 -0.29 -0.14 -0.54

Highway Capital Semi-Annual Data
Feb13 Aug13 Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.15 0.01 -0.14 -0.41 -0.24

Highway Capital 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 Aug. 2022 adds up the semi-annually data reported by the company within the most recent 12 months, which was £-0.65 Mil.

* 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.


Highway Capital  (LSE:HWC) Operating Income Explanation

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

Highway Capital's annualized ROC % for the quarter that ended in Aug. 2022 is calculated as:

ROC % (Q: Aug. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2022 ) + Invested Capital (Q: Aug. 2022 ))/ count )
=-0.486 * ( 1 - 0% )/( (0.702 + 1.011)/ 2 )
=-0.486/0.8565
=-56.74 %

where

Note: The Operating Income data used here is two times the semi-annual (Aug. 2022) data.

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

Highway Capital's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2022 is calculated as:

ROC (Joel Greenblatt) %(Q: Aug. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Feb. 2022  Q: Aug. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-0.486/( ( (0 + max(-1.47, 0)) + (0 + max(-0.902, 0)) )/ 2 )
=-0.486/( ( 0 + 0 )/ 2 )
=-0.486/0
= %

where Working Capital is:

Working Capital(Q: Feb. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0) - (0.999 + 0 + 0.471)
=-1.47

Working Capital(Q: Aug. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.007 + 0 + 0) - (0.909 + 0 + 0)
=-0.902

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Aug. 2022) EBIT data.

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

Highway Capital's Operating Margin % for the quarter that ended in Aug. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Aug. 2022 )/Revenue (Q: Aug. 2022 )
=-0.243/0
= %

* 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.

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.


Highway Capital Operating Income Related Terms

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Highway Capital Business Description

Traded in Other Exchanges
N/A
Address
Reynolds Road, Eden House, Beaconsfield, Buckinghamshire, GBR, HP9 2FL
Highway Capital PLC is a United Kingdom-based company. The company focuses on investing in or acquiring undervalued companies with either strong asset backing or opportunities, which possess high barriers to entry.