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Little Green Pharma (ASX:LGP) Operating Income : A$-3.55 Mil (TTM As of Mar. 2025)


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What is Little Green Pharma Operating Income?

Little Green Pharma's Operating Income for the six months ended in Mar. 2025 was A$-0.34 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2025 was A$-3.55 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Little Green Pharma's Operating Income for the six months ended in Mar. 2025 was A$-0.34 Mil. Little Green Pharma's Revenue for the six months ended in Mar. 2025 was A$19.31 Mil. Therefore, Little Green Pharma's Operating Margin % for the quarter that ended in Mar. 2025 was -1.74%.

Little Green Pharma'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. Little Green Pharma's annualized ROC % for the quarter that ended in Mar. 2025 was 4.15%. Little Green Pharma's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2025 was -3.42%.


Little Green Pharma Operating Income Historical Data

The historical data trend for Little Green Pharma'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.

Little Green Pharma Operating Income Chart

Little Green Pharma Annual Data
Trend Jun19 Jun20 Jun21 Mar23 Mar24 Mar25
Operating Income
Get a 7-Day Free Trial -7.60 -4.90 -13.48 -12.24 -3.55

Little Green Pharma Semi-Annual Data
Jun19 Jun20 Dec20 Jun21 Dec21 Mar23 Sep23 Mar24 Sep24 Mar25
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only - -2.87 -9.38 -3.21 -0.34

Little Green Pharma 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 Mar. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$-3.55 Mil.

* 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.


Little Green Pharma  (ASX:LGP) Operating Income Explanation

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

Little Green Pharma's annualized ROC % for the quarter that ended in Mar. 2025 is calculated as:

ROC % (Q: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Mar. 2025 ))/ count )
=-0.672 * ( 1 - 607.94% )/( (74.917 + 89.745)/ 2 )
=3.4133568/82.331
=4.15 %

where

Note: The Operating Income data used here is two times the semi-annual (Mar. 2025) data.

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

Little Green Pharma's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2024  Q: Mar. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-2.44/( ( (58.087 + max(10.615, 0)) + (60.295 + max(13.755, 0)) )/ 2 )
=-2.44/( ( 68.702 + 74.05 )/ 2 )
=-2.44/71.376
=-3.42 %

where Working Capital is:

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.234 + 10.743 + 3.132) - (3.299 + 0 + 2.195)
=10.615

Working Capital(Q: Mar. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3.638 + 13.829 + 2.545) - (4.003 + 0.24 + 2.014)
=13.755

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Mar. 2025) EBIT data.

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

Little Green Pharma's Operating Margin % for the quarter that ended in Mar. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2025 )/Revenue (Q: Mar. 2025 )
=-0.336/19.311
=-1.74 %

* 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.

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.


Little Green Pharma Operating Income Related Terms

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Little Green Pharma Business Description

Traded in Other Exchanges
N/A
Address
66 Kings Park Road, Level 2, Suite 2, West Perth, Perth, WA, AUS, 6005
Little Green Pharma Ltd is engaged in the vertically integrated medicinal cannabis business. The business activities of the company include cultivation, production, research and development, manufacturing, and distribution of medicinal cannabis products. The company's two key types of products available at Little Green Pharma are oils (which are ingested) and flowers (which are usually inhaled through vaporizing). It offers LGP-branded medicinal cannabis oil products in the Australian and European markets.

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