Schmitt Industries (Schmitt Industries) Operating Income : $-10.62 Mil (TTM As of May. 2022)

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What is Schmitt Industries Operating Income?

Schmitt Industries's Operating Income for the three months ended in May. 2022 was $-3.43 Mil. Its Operating Income for the trailing twelve months (TTM) ended in May. 2022 was $-10.62 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Schmitt Industries's Operating Income for the three months ended in May. 2022 was $-3.43 Mil. Schmitt Industries's Revenue for the three months ended in May. 2022 was $1.32 Mil. Therefore, Schmitt Industries's Operating Margin % for the quarter that ended in May. 2022 was -259.11%.

Schmitt Industries'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. Schmitt Industries's annualized ROC % for the quarter that ended in May. 2022 was -71.68%. Schmitt Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2022 was -83.86%.

Schmitt Industries Operating Income Historical Data

The historical data trend for Schmitt Industries'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.

Schmitt Industries Operating Income Chart

Schmitt Industries Annual Data

Trend

May13

May14

May15

May16

May17

May18

May19

May20

May21

May22

Operating Income

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0.16

-1.47

-2.18

-9.40

-10.62

Schmitt Industries Quarterly Data
	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22
Operating Income	Get a 7-Day Free Trial															-3.26	-2.37	-2.27	-2.55	-3.43

Schmitt Industries 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 May. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $-10.62 Mil.

Schmitt Industries (OTCPK:SMIT) Operating Income Explanation

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

Schmitt Industries's annualized ROC % for the quarter that ended in May. 2022 is calculated as:

	ROC % (Q: May. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2022 )	+	Invested Capital (Q: May. 2022 ))	/ count )
=	-13.712 * ( 1 - -0.09% )	/	( (17.179	+	21.112)	/ 2 )
=	-13.7243408	/	19.1455
=	-71.68 %

where

	Invested Capital		(Q: Feb. 2022 )
=	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	))
=	20.353	-	1.875	-	( 1.999	-	max(0, 3.877	-	5.176	+	1.999	))
=	17.179

	Invested Capital		(Q: May. 2022 )
=	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	))
=	22.839	-	3.549	-	( 1.051	-	max(0, 5.828	-	4.006	+	1.051	))
=	21.112

Note: The Operating Income data used here is four times the quarterly (May. 2022) data.

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

Schmitt Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2022 is calculated as:

	ROC (Joel Greenblatt) %		(Q: May. 2022 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Feb. 2022		Q: May. 2022
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-14.032	/	( ( (14.501 + max(1.172, 0))	+	(17.791 + max(-0.895, 0)) )	/	2 )
=	-14.032	/	( ( 15.673	+	17.791 )	/	2 )
=	-14.032	/	16.732
=	-83.86 %

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)
=	(0.937	+	2.192	+	0.029999999999999)	-	(1.875	+	0.113	+	-0.00099999999999989)
=	1.172

	Working Capital		(Q: May. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.752	+	1.444	+	0.759)	-	(3.549	+	0.116	+	0.185)
=	-0.895

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (May. 2022) EBIT data.

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

Schmitt Industries's Operating Margin % for the quarter that ended in May. 2022 is calculated as:

Operating Margin %	=	Operating Income (Q: May. 2022 )	/	Revenue (Q: May. 2022 )
	=	-3.428	/	1.323
	=	-259.11 %

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.

Schmitt Industries Operating Income Related Terms

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

Schmitt Industries (Schmitt Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Schmitt Industries Inc (OTCPK:SMIT) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

2765 North West Nicolai Street, Portland, OR, USA, 97210

Website

https://www.schmittindustries.com

Schmitt Industries Inc is engaged in propane tank monitoring solutions, precision measurement solutions, and ice cream production and distribution. The Company operates as two reportable segments: the Measurement Segment and the Ice Cream Segment. Xact product line includes satellite-focused remote tank monitoring products and related monitoring services for markets in the IoT environment. The Company also manufactures, wholesales, and retails ice cream and related products.

Executives

Dustin Henderson	other: Shareholder	11125 N PARK BLVD, STE 106, SEMINOLE FL 33772
Kristi Michelle Smaha	director	C/O SCHMITT INDUSTRIES, INC., 2765 N.W. NICOLAI STREET, PORTLAND OR 97210-1818
Alexandre Zyngier	director	5700 W. PLANO PARKWAY, SUITE 3600, PLANO TX 75093
Philip Bosco	officer: Chief Financial Officer	2765 NW NICOLAI STREET, PORTLAND OR 97210
Lillian Tung	director	45 WEST 67TH STREET, 10D, NEW YORK NY 10023
Michael R. Zapata	officer: Chief Executive Officer	2765 NW NICOLAI STREET, PORTLAND OR 97210
Andrews P Hines	director
Steven Strom	director	2765 NW NICOLAI STREET, PORTLAND OR 97210
Charles Davidson	director	C/O SCHMITT INDUSTRIES, INC., 2765 N.W. NICOLAI STREET, PORTLAND OR 97210
Jamie Michael Schmidt	officer: Chief Financial Officer	2765 NW NICOLAI STREET, PORTLAND OR 97210
Walter Brown Pistor	10 percent owner	2415 KALAMA RIVER ROAD, KALAMA WA 98625
Regina Walker	officer: Chief Financial Officer	2765 NW NICOLAI STREET, PORTLAND OR 97210
Michael Ellsworth	director	SCHMITT INDUSTRIES, INC., 2765 NW NICOLAI, PORTLAND OR 97210
David Hudson	director	SCHMITT INDUSTRIES, INC., 2765 NW NICOLAI, PORTLAND OR 97210
Maynard E Brown	director	1595 - 19TH STREET, WEST VANCOUVER A1 V7V 3X5