American Capital (American Capital) Operating Income : $312.0 Mil (TTM As of Sep. 2016)

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What is American Capital Operating Income?

American Capital's Operating Income for the three months ended in Sep. 2016 was $52.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2016 was $312.0 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. American Capital's Operating Income for the three months ended in Sep. 2016 was $52.0 Mil. American Capital's Revenue for the three months ended in Sep. 2016 was $94.0 Mil. Therefore, American Capital's Operating Margin % for the quarter that ended in Sep. 2016 was 55.32%.

American Capital'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. American Capital's annualized ROC % for the quarter that ended in Sep. 2016 was 4.54%. American Capital's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 was 1,929.41%.

American Capital Operating Income Historical Data

The historical data trend for American Capital'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.

American Capital Operating Income Chart

American Capital Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Operating Income

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303.00

383.00

232.00

183.00

378.00

American Capital Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Operating Income	Get a 7-Day Free Trial															108.00	95.00	94.00	71.00	52.00

American Capital 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. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $312.0 Mil.

American Capital (NAS:ACAS) Operating Income Explanation

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

American Capital's annualized ROC % for the quarter that ended in Sep. 2016 is calculated as:

	ROC % (Q: Sep. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2016 )	+	Invested Capital (Q: Sep. 2016 ))	/ count )
=	208 * ( 1 - 11.32% )	/	( (4453	+	3675)	/ 2 )
=	184.4544	/	4064
=	4.54 %

where

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	5334	-	0	-	( 881	-	max(0, 5	-	954	+	881	))
=	4453

	Invested Capital		(Q: Sep. 2016 )
=	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	))
=	4700	-	0	-	( 1025	-	max(0, 0	-	1072	+	1025	))
=	3675

Note: The Operating Income data used here is four times the quarterly (Sep. 2016) data.

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

American Capital's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2016 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2016		Q: Sep. 2016
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	656	/	( ( (0 + max(36, 0))	+	(0 + max(32, 0)) )	/	2 )
=	656	/	( ( 36	+	32 )	/	2 )
=	656	/	34
=	1,929.41 %

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)
=	(3	+	0	+	33)	-	(0	+	0	+	0)
=	36

	Working Capital		(Q: Sep. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	32)	-	(0	+	0	+	0)
=	32

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2016) EBIT data.

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

American Capital's Operating Margin % for the quarter that ended in Sep. 2016 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2016 )	/	Revenue (Q: Sep. 2016 )
	=	52	/	94
	=	55.32 %

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.

American Capital Operating Income Related Terms

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

American Capital (American Capital) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » American Capital Ltd (NAS:ACAS) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.american-capital.com

American Capital Ltd was founded in 1986 and incorporated in Delaware. On August 29, 1997, it completed an initial public offering and became a non-diversified closed end investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. It is an asset management and private equity firm. The Company originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate, energy and structured products. It invests in senior and mezzanine debt and equity in buyouts of private companies sponsored by it or sponsored by other private equity funds and provide capital directly to early stage and mature private and small public companies. Its business objectives are to increase its net earnings and net asset value by making investments with attractive current yields and/or potential for equity appreciation and realized gains. Its investments can be divided into the following six business lines: American Capital One Stop Buyouts, Sponsor Finance Investments, Direct and Other Investments, European Capital, Asset Management and Structured Products. The Company competes with strategic buyers, private equity funds, mezzanine debt funds and other buyers and financing sources, including traditional financial services companies such as finance companies, commercial banks, investment banks and other equity and non-equity based investment funds. The Company and its portfolio companies are subject to regulation by laws at the local, state, federal and foreign level, including with respect to securities laws, tax and accounting standards.

Executives

Susan K Nestegard	director	AMERICAN CAPITAL, LTD., 2 BETHESDA METRO, 14TH FLOOR, BETHESDA MD 20814
Gordon Obrien	officer: See Remarks	1400 TOASTMASTER DRIVE, ELGIN IL 60120
Peterson Kenneth D Jr	director	2 BETHESDA METRO CENTER, 14TH FLOOR, BETHESDA MD 20814
Samuel Allan Flax	officer: EVP, GC and Secretary	2 BETHESDA METRO CENTER, 14TH FLOOR, BETHESDA MD 20814
Alvin N Puryear	director	2 BETHESDA METRO CENTER, 14TH FLOOR, BETHESDA MD 20814
Malon Wilkus	director, officer: Chairman and CEO	2 BETHESDA METRO CENTER, 14TH FLOOR, BETHESDA MD 20814
John R Erickson	officer: See Remarks	2 BETHESDA METRO CENTER, 14TH FLOOR, BETHESDA MD 20814
Kristen L Manos	director	855 EAST MAIN AVENUE, ZEELAND MI 49454-0302
Ira Wagner	officer: Pres., European Priv Fin	2 BETHESDA METRO CENTER, 14TH FLOOR, BETHESDA MD 20814
Paulson Advantage Plus Master Ltd.	10 percent owner	C/O MAPLES CORPORATE SERVICES LIMITED, P.O. BOX 309, UGLAND HOUSE, S. CHURCH ST, GRAND CAYMAN E9 KY1-1104
Paulson Advantage Master Ltd.	10 percent owner	C/O MAPLES CORPORATE SERVICES LIMITED, P.O. BOX 309, UGLAND HOUSE, S. CHURCH ST, GRAND CAYMAN E9 KY1-1104
Paulson International Ltd.	10 percent owner	C/O MAPLES CORPORATE SERVICES LIMITED, P.O. BOX 309, UGLAND HOUSE, S. CHURCH ST, GRAND CAYMAN E9 KY1-1104
Paulson Partners Enhanced L.p.	10 percent owner	1133 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Paulson Enhanced Ltd	10 percent owner	C/O MAPLES CORPORATE SERVICES LIMITED, P.O. BOX 309, UGLAND HOUSE, S. CHURCH ST, GRAND CAYMAN E9 KY1-1104
Paulson & Co. Inc.	10 percent owner	1133 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10036