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Novogen Ltd  (NAS:NVGN) Operating Income: $-9.17 Mil (TTM As of Dec. 2016)

Novogen Ltd's Operating Income for the six months ended in Dec. 2016 was $-6.40 Mil. ts operating income for the trailing twelve months (TTM) ended in Dec. 2016 was $-9.17 Mil.

Warning Sign:

Novogen Ltd had operating loss over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Novogen Ltd's Operating Income for the six months ended in Dec. 2016 was $-6.40 Mil. Novogen Ltd's Revenue for the six months ended in Dec. 2016 was $0.11 Mil. Therefore, Novogen Ltd's Operating Margin % for the quarter that ended in Dec. 2016 was -6,088.81%.

Good Sign:

Novogen Ltd operating margin is expanding. Margin expansion is usually a good sign.

Novogen Ltd's 5-Year average Growth Rate for Operating Margin % was 120.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Novogen Ltd's annualized ROC % for the quarter that ended in Dec. 2016 was -253.60%. Novogen Ltd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2016 was -357.40%.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Novogen Ltd Annual Data

Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.40 -1.88 -5.91 -6.29 -9.17

Novogen Ltd Semi-Annual Data

Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.39 -3.13 -5.74 -3.30 -6.40

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.

Novogen Ltd's Operating Income for the fiscal year that ended in Jun. 2016 is calculated as

Operating Income(A: Jun. 2016 )
=Revenue-Cost of Goods Sold-Selling, General, & Admin. Expense
=0.300518134715-0-4.26424870466
-Research & Development-Depreciation, Depletion and Amortization-Others
-5.20207253886-0.475943745374--0.475943745374
=-9.17

Novogen Ltd's Operating Income for the quarter that ended in is calculated as

Operating Income(Q: Dec. 2016 )
=Revenue-Cost of Goods Sold-Selling, General, & Admin. Expense
=0.105069801616-0-2.91697281411
-Research & Development-Depreciation, Depletion and Amortization-Others (1)
-3.58633357825-0.407053637032--0.407788390889
=-6.40

Operating Income(Q: Dec. 2016 )
=EBITDA-Depreciation, Depletion and Amortization-Others (2)
=-2.71344599559-0.407053637032-3.27700220426
=-6.40

For stock reported semi-annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Dec. 2016 was $-9.17 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

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

Novogen Ltd's annualized ROC % for the quarter that ended in Dec. 2016 is calculated as:

ROC %(Q: Dec. 2016 )
=NOPAT/Average Invested Capital
=Operating Income*(1-Tax Rate)/( (Invested Capital (Q: Jun. 2016 ) + Invested Capital (Q: Dec. 2016 ))/2)
=-12.7950036738 * ( 1 - 1.53% )/( (0.353811991118 + 9.58265980896)/2)
=-12.5992401176/4.96823590004
=-253.60 %

where

Invested Capital(Q: Jun. 2016 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt + Total Equity - Cash
=0 + 0 + 25.1154700222 - 24.7616580311
=0.353811991118

Invested Capital(Q: Dec. 2016 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt + Total Equity - Cash
=0 + 0 + 23.2490815577 - 13.6664217487
=9.58265980896

Note: The Operating Income data used here is two times the semi-annual (Dec. 2016) operating income data.

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

Novogen Ltd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2016 is calculated as:

ROC (Joel Greenblatt's)(Q: Dec. 2016 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2016  Q: Dec. 2016
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/2 )
=-6.24246877296/( ( (0.438193930422 + max(-0.588452997779, 0)) + (0.404849375459 + max(2.65025716385, 0)) )/2 )
=-6.24246877296/( ( 0.438193930422 + 3.05510653931 )/2 )
=-6.24246877296/1.74665023487
=-357.40 %

where Working Capital is:

Working Capital(Q: Jun. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.00666173205033 + 0 + 0.464840858623) - (0.954848260548 + 0 + 0.105107327905)
=-0.588452997779

Working Capital(Q: Dec. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.278471711976 + 0 + 4.2263041881) - (1.85451873622 + 0 + 0)
=2.65025716385

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2016) EBIT data.

3. Operating Income is also linked to Operating Margin:

Novogen Ltd's Operating Margin % for the quarter that ended in Dec. 2016 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2016 )/Revenue (Q: Dec. 2016 )
=-6.39750183688/0.105069801616
=-6,088.81 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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.


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