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Cyberonics Inc (NAS:CYBX)
Profitability Rank
5 (As of Mar. 2016)

Cyberonics Inc has the Profitability Rank of 5.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

• 1. Operating Margin
• 2. Piotroski F-Score
• 3. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
• 4. Consistency of the profitability
• 5. Predictability Rank

Cyberonics Inc's operating margin for the quarter that ended in Mar. 2016 was -12.58%. As of today, Cyberonics Inc's Piotroski F-Score is 0.


Definition

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Cyberonics Inc has the Profitability Rank of 5.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

•1. Operating Margin

Operating Margin - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Cyberonics Inc's Operating Margin for the quarter that ended in Mar. 2016 is calculated as:

Operating Margin=Operating Income (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=-36.105 / 286.969
=-12.58 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

•2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Cyberonics Inc has an F-score of 0. It is a bad or low score, which usually implies poor business operation.

•3. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

LivaNova PLC operating margin is expanding. Margin expansion is usually a good sign.

•4. Consistency of the profitability

•5. Predictability Rank


Related Terms

Financial Strength Rank, Operating Margin, Piotroski F-Score

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