Rocky Mountain Chocolate Factory (Rocky Mountain Chocolate Factory) Operating Income : $-5.28 Mil (TTM As of Nov. 2023)

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What is Rocky Mountain Chocolate Factory Operating Income?

Rocky Mountain Chocolate Factory's Operating Income for the three months ended in Nov. 2023 was $-0.78 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2023 was $-5.28 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Rocky Mountain Chocolate Factory's Operating Income for the three months ended in Nov. 2023 was $-0.78 Mil. Rocky Mountain Chocolate Factory's Revenue for the three months ended in Nov. 2023 was $7.70 Mil. Therefore, Rocky Mountain Chocolate Factory's Operating Margin % for the quarter that ended in Nov. 2023 was -10.07%.

Rocky Mountain Chocolate Factory'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. Rocky Mountain Chocolate Factory's annualized ROC % for the quarter that ended in Nov. 2023 was -23.20%. Rocky Mountain Chocolate Factory's annualized ROC (Joel Greenblatt) % for the quarter that ended in Nov. 2023 was -28.32%.

Rocky Mountain Chocolate Factory Operating Income Historical Data

The historical data trend for Rocky Mountain Chocolate Factory'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.

Rocky Mountain Chocolate Factory Operating Income Chart

Rocky Mountain Chocolate Factory Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Operating Income

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3.23

1.41

-2.67

-0.70

-4.89

Rocky Mountain Chocolate Factory Quarterly Data
	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23
Operating Income	Get a 7-Day Free Trial															-0.20	-1.95	-1.54	-1.01	-0.78

Rocky Mountain Chocolate Factory 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 Nov. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-5.28 Mil.

Rocky Mountain Chocolate Factory (NAS:RMCF) Operating Income Explanation

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

Rocky Mountain Chocolate Factory's annualized ROC % for the quarter that ended in Nov. 2023 is calculated as:

	ROC % (Q: Nov. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2023 )	+	Invested Capital (Q: Nov. 2023 ))	/ count )
=	-3.1 * ( 1 - 0% )	/	( (12.416	+	14.312)	/ 2 )
=	-3.1	/	13.364
=	-23.20 %

where

	Invested Capital		(Q: Aug. 2023 )
=	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	))
=	20.535	-	4.134	-	( 3.985	-	max(0, 5.582	-	10.102	+	3.985	))
=	12.416

	Invested Capital		(Q: Nov. 2023 )
=	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	))
=	21.28	-	4.886	-	( 2.082	-	max(0, 7.079	-	10.08	+	2.082	))
=	14.312

Note: The Operating Income data used here is four times the quarterly (Nov. 2023) data.

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

Rocky Mountain Chocolate Factory's annualized ROC (Joel Greenblatt) % for the quarter that ended in Nov. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Nov. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Aug. 2023		Q: Nov. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-2.98	/	( ( (8.543 + max(0.765, 0))	+	(9.503 + max(2.232, 0)) )	/	2 )
=	-2.98	/	( ( 9.308	+	11.735 )	/	2 )
=	-2.98	/	10.5215
=	-28.32 %

where Working Capital is:

	Working Capital		(Q: Aug. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.962	+	3.233	+	0.434)	-	(4.134	+	0.729	+	0.00099999999999945)
=	0.765

	Working Capital		(Q: Nov. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(3.355	+	3.67	+	0.628)	-	(4.886	+	0.535	+	-8.8817841970013E-16)
=	2.232

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Nov. 2023) EBIT data.

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

Rocky Mountain Chocolate Factory's Operating Margin % for the quarter that ended in Nov. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Nov. 2023 )	/	Revenue (Q: Nov. 2023 )
	=	-0.775	/	7.697
	=	-10.07 %

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.

Rocky Mountain Chocolate Factory Operating Income Related Terms

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Rocky Mountain Chocolate Factory (Rocky Mountain Chocolate Factory) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Rocky Mountain Chocolate Factory Inc (NAS:RMCF) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

RMFA:Germany

Address

265 Turner Drive, Durango, CO, USA, 81303

Website

https://www.rmcf.com

Rocky Mountain Chocolate Factory Inc operates as a manufacturer of chocolate candies and confectionery products. The business activity of the firm functions through Franchising, Manufacturing, Retail Stores, U-Swirl Operations, and Other segments. Its products include varieties of Clusters, Caramels, Creams, Toffees, Mints, and Truffles. Geographically, the company and its subsidiaries have stores in Canada, South Korea, Panama, the Philippines, Qatar, and other countries.

Executives

Robert J Sarlls	director, officer: Chief Executive Officer	1703 N. RANDALL ROAD, ELGIN IL 60123-7820
Global Value Investment Corp.	10 percent owner	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Geygan Jeffrey Richart Geygan	director	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Brett P Seabert	director	265 TURNER DRIVE, DURANGO CO 81303
A Allen Arroyo	officer: CFO	C/O ROCKY MOUNTAIN CHOCOLATE FACTORY, 265 TURNER DRIVE, DURANGO CO 81303
Gvp 2021-a, Llc	other: GVIC-Controlled Entity	1433 N WATER STREET, SUITE 400, MILWAUKEE WI 53202
Gvp 2021-a, L.p.	other: GVIC-Controlled Entity	1433 N WATER STREET, SUITE 400, MILWAUKEE WI 53202
Kathleen Geygan	other: Director of GVIC	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Stacy Wilke	other: Officer of GVIC	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
James Geygan	other: Officer of GVIC	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Mark O Riegel	director	265 TURNER DRIVE, DURANGO CO 81303
Andrew Berger	other: See Explanation of Responses	84 ELM STREET, WESTFIELD NJ 07090
Richard Degnan	other: See footnote 1	2101 FREDRICK DOUGLAS BLVD, NEW YORK NY 10026
Suchit Majmudar	other: See footnote 1	1200 SOUTH GARFIELD STREET, DENVER CO 80210
Mary Bradley	other: See footnote 1	103 ST ANDREWS PLACE, NEWTOWN PA 18940