Octopus Eclipse VCT 2 (LSE:OEC2) Operating Income : £-0.18 Mil (TTM As of Jul. 2012)

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What is Octopus Eclipse VCT 2 Operating Income?

Octopus Eclipse VCT 2's Operating Income for the six months ended in Jul. 2012 was £-0.08 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2012 was £-0.18 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Octopus Eclipse VCT 2's Operating Income for the six months ended in Jul. 2012 was £-0.08 Mil. Octopus Eclipse VCT 2's Revenue for the six months ended in Jul. 2012 was £0.00 Mil. Therefore, Octopus Eclipse VCT 2's Operating Margin % for the quarter that ended in Jul. 2012 was %.

Octopus Eclipse VCT 2'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. Octopus Eclipse VCT 2's annualized ROC % for the quarter that ended in Jul. 2012 was -2.26%. Octopus Eclipse VCT 2's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2012 was %.

Octopus Eclipse VCT 2 Operating Income Historical Data

The historical data trend for Octopus Eclipse VCT 2'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.

Octopus Eclipse VCT 2 Operating Income Chart

Octopus Eclipse VCT 2 Annual Data

Trend

Jan06

Jan07

Jan08

Jan09

Jan10

Jan11

Jan12

Operating Income

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0.17

0.18

-0.08

0.01

-0.20

Octopus Eclipse VCT 2 Semi-Annual Data
	Jul05	Jan06	Jul06	Jan07	Jul07	Jan08	Jul08	Jan09	Jul09	Jan10	Jul10	Jan11	Jul11	Jan12	Jul12
Operating Income	Get a 7-Day Free Trial										-0.06	0.07	-0.10	-0.10	-0.08

Octopus Eclipse VCT 2 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 Jul. 2012 adds up the semi-annually data reported by the company within the most recent 12 months, which was £-0.18 Mil.

Octopus Eclipse VCT 2 (LSE:OEC2) Operating Income Explanation

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

Octopus Eclipse VCT 2's annualized ROC % for the quarter that ended in Jul. 2012 is calculated as:

	ROC % (Q: Jul. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jan. 2012 )	+	Invested Capital (Q: Jul. 2012 ))	/ count )
=	-0.16 * ( 1 - 0% )	/	( (7.387	+	6.745)	/ 2 )
=	-0.16	/	7.066
=	-2.26 %

where

	Invested Capital		(Q: Jan. 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	))
=	10.662	-	0.172	-	( 3.256	-	max(0, 0.227	-	3.33	+	3.256	))
=	7.387

	Invested Capital		(Q: Jul. 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	))
=	10.129	-	0	-	( 3.566	-	max(0, 0.194	-	3.578	+	3.566	))
=	6.745

Note: The Operating Income data used here is two times the semi-annual (Jul. 2012) data.

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

Octopus Eclipse VCT 2's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2012 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jul. 2012 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jan. 2012		Q: Jul. 2012
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-0.16	/	( ( (0 + max(-0.153, 0))	+	(0 + max(-0.182, 0)) )	/	2 )
=	-0.16	/	( ( 0	+	0 )	/	2 )
=	-0.16	/	0
=	%

where Working Capital is:

	Working Capital		(Q: Jan. 2012 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0.074)	-	(0.172	+	0	+	0.055)
=	-0.153

	Working Capital		(Q: Jul. 2012 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0.012)	-	(0	+	0	+	0.194)
=	-0.182

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jul. 2012) EBIT data.

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

Octopus Eclipse VCT 2's Operating Margin % for the quarter that ended in Jul. 2012 is calculated as:

Operating Margin %	=	Operating Income (Q: Jul. 2012 )	/	Revenue (Q: Jul. 2012 )
	=	-0.08	/	0
	=	%

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.

Octopus Eclipse VCT 2 Operating Income Related Terms

Thank you for viewing the detailed overview of Octopus Eclipse VCT 2's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Octopus Eclipse VCT 2 (LSE:OEC2) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Octopus Eclipse VCT 2 PLC (LSE:OEC2) » Definitions » Operating Income

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Traded in Other Exchanges

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Address

Website

http://www.octopusinvestments.com

Octopus Eclipse VCT 2 PLC is a venture capital trust which aims to provide shareholders with attractive tax-free dividends and long-term capital growth, by investing in a diverse portfolio of unquoted and AIM-quoted companies.

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