VIQ Solutions (TSX:VQS) Operating Income : C$-17.10 Mil (TTM As of Sep. 2023)

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What is VIQ Solutions Operating Income?

VIQ Solutions's Operating Income for the three months ended in Sep. 2023 was C$-3.60 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was C$-17.10 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. VIQ Solutions's Operating Income for the three months ended in Sep. 2023 was C$-3.60 Mil. VIQ Solutions's Revenue for the three months ended in Sep. 2023 was C$13.67 Mil. Therefore, VIQ Solutions's Operating Margin % for the quarter that ended in Sep. 2023 was -26.30%.

Warning Sign:

VIQ Solutions Inc operating margin has been in a 5-year decline. The average rate of decline per year is -28.2%.

VIQ Solutions's 5-Year average Growth Rate for Operating Margin % was -28.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. VIQ Solutions's annualized ROC % for the quarter that ended in Sep. 2023 was -49.85%. VIQ Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was -572.06%.

VIQ Solutions Operating Income Historical Data

The historical data trend for VIQ Solutions'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.

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VIQ Solutions Operating Income Chart

VIQ Solutions Annual Data

Trend

Dec13

Dec14

Dec15

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Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Operating Income

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-4.06

-3.72

-2.49

-23.59

-16.58

VIQ Solutions Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Operating Income	Get a 7-Day Free Trial															-3.34	-5.80	-3.79	-3.93	-3.60

VIQ Solutions 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 Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was C$-17.10 Mil.

VIQ Solutions (TSX:VQS) Operating Income Explanation

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

VIQ Solutions's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-14.38 * ( 1 - -19.77% )	/	( (35.562	+	33.532)	/ 2 )
=	-17.222926	/	34.547
=	-49.85 %

where

	Invested Capital		(Q: Jun. 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	))
=	43.663	-	9.47	-	( 2.381	-	max(0, 13.261	-	11.892	+	2.381	))
=	35.562

	Invested Capital		(Q: Sep. 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	))
=	41.907	-	10.008	-	( 2.345	-	max(0, 13.496	-	11.863	+	2.345	))
=	33.532

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

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

VIQ Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-13.904	/	( ( (2.588 + max(-3.67, 0))	+	(2.273 + max(-3.973, 0)) )	/	2 )
=	-13.904	/	( ( 2.588	+	2.273 )	/	2 )
=	-13.904	/	2.4305
=	-572.06 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(6.001	+	0.043	+	2.608)	-	(9.47	+	2.221	+	0.631)
=	-3.67

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(6.139	+	0.046	+	2.666)	-	(10.008	+	2.565	+	0.251)
=	-3.973

When net working capital is negative, 0 is used.

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

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

VIQ Solutions's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	-3.595	/	13.67
	=	-26.30 %

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.

VIQ Solutions Operating Income Related Terms

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VIQ Solutions (TSX:VQS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » VIQ Solutions Inc (TSX:VQS) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

VQSSF:USA

Address

5915 Airport Road, Suite 700, Mississauga, ON, CAN, L4V 1T1

Website

https://www.viqsolutions.com

VIQ Solutions Inc operates as a technology and service platform provider for digital evidence capture, retrieval, and content management in Australia, the United Kingdom, Canada, the United States, and internationally. The reportable segments of the company are technology and related revenue which develops, distributes, and licenses computer-based digital solutions, and the technology services which provide recording and transcription services.

Executives

Yixin (shing) Pan

Director

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