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Barnes & Noble Education (Barnes & Noble Education) Operating Income : $-16 Mil (TTM As of Jan. 2024)


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What is Barnes & Noble Education Operating Income?

Barnes & Noble Education's Operating Income for the three months ended in Jan. 2024 was $10 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $-16 Mil.

Warning Sign:

Barnes & Noble Education Inc had lost money in 67% of the time over the past 12quarters.

Operating Margin % is calculated as Operating Income divided by its Revenue. Barnes & Noble Education's Operating Income for the three months ended in Jan. 2024 was $10 Mil. Barnes & Noble Education's Revenue for the three months ended in Jan. 2024 was $457 Mil. Therefore, Barnes & Noble Education's Operating Margin % for the quarter that ended in Jan. 2024 was 2.22%.

Barnes & Noble Education'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. Barnes & Noble Education's annualized ROC % for the quarter that ended in Jan. 2024 was 6.06%. Barnes & Noble Education's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 0.71%.


Barnes & Noble Education Operating Income Historical Data

The historical data trend for Barnes & Noble Education'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.

Barnes & Noble Education Operating Income Chart

Barnes & Noble Education Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.98 -23.78 -131.03 -53.26 -50.34

Barnes & Noble Education Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Operating Income Get a 7-Day Free Trial 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 -4.94 -29.09 -37.10 40.11 10.13

Barnes & Noble Education 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 Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-16 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.


Barnes & Noble Education  (NYSE:BNED) Operating Income Explanation

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

Barnes & Noble Education's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

ROC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=40.528 * ( 1 - -2.36% )/( (632.001 + 737.558)/ 2 )
=41.4844608/684.7795
=6.06 %

where

Invested Capital(Q: Oct. 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))
=1144.979 - 497.97 - ( 15.008 - max(0, 624.396 - 716.355+15.008))
=632.001

Invested Capital(Q: Jan. 2024 )
=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))
=1151.597 - 499.974 - ( 8.123 - max(0, 849.586 - 763.651+8.123))
=737.558

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

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

Barnes & Noble Education's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2023  Q: Jan. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=3.684/( ( (307.934 + max(203.377, 0)) + (277.511 + max(255.554, 0)) )/ 2 )
=3.684/( ( 511.311 + 533.065 )/ 2 )
=3.684/522.188
=0.71 %

where Working Capital is:

Working Capital(Q: Oct. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(221.805 + 416.132 + 63.41) - (497.97 + 0 + -1.1368683772162E-13)
=203.377

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(315.126 + 386.065 + 54.337) - (499.974 + 0 + 0)
=255.554

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

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

Barnes & Noble Education's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jan. 2024 )/Revenue (Q: Jan. 2024 )
=10.132/456.673
=2.22 %

* 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.


Barnes & Noble Education Operating Income Related Terms

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Barnes & Noble Education (Barnes & Noble Education) Business Description

Traded in Other Exchanges
Address
120 Mountain View Boulevard, Basking Ridge, NJ, USA, 07920
Barnes & Noble Education Inc is an operator of bookstores in college and university campuses across the United States. The company is also engaged in providing digital education services. It operates in three reportable segments: Retail, wholesale, and Corporate Services.
Executives
Kevin Watson officer: EVP, CFO 1111 STEWART AVENUE, BETHPAGE NY 11714
Raphael Wallander director 3601 SOUTH CONGRESS AVENUE, BUILDING E, AUSTIN TX 78704
Steven G Panagos director C/O SPIRIT MTA REIT, 2727 NORTH HARWOOD STREET, SUITE 300, DALLAS TX 75201
Michael Huseby director 12405 POWERSCOURT DR, C/O CHARTER COMMUNICATIONS, ST LOUIS MO 63131
Denise Warren director 209 REDWOOD SHORES PKWY, REDWOOD CITY CA 94065
Mario R. Dell'aera director C/O BARNES & NOBLE EDUCATION, INC., 120 MOUNTAINVIEW BLVD., BASKING RIDGE NJ 07920
Kathryn Eberle Walker director 1621 NORTH KENT STREET, SUITE 1200, ARLINGTON VA 22209
Zachary Levenick other: See Explanation of Responses 840 SOUTH GRAND AVENUE, PASADENA CA 91105
David G Golden director C/O BLACKBAUD, INC., 2000 DANIEL ISLAND DRIVE, CHARLESTON SC 29492
Miller Michael Connolly officer: CLO & VP Corp Affairs C/O BARNES & NOBLE EDUCATION, INC, 120 MOUNTAIN VIEW BLVD, BASKING RIDGE NJ 07920
Nenke David W. B. officer: Pres, DSS C/O BARNES & NOBLE EDUCATION, INC., 120 MOUNTAIN VIEW BLVD., BASKING RIDGE NJ 07920
David A Wilson director
David Gordon Henderson officer: Pres, MBS; EVP, Strat Services C/O BARNES & NOBLE EDUCATION, INC., 120 MOUNTAIN VIEW BLVD., BASKING RIDGE NJ 07920
Seema Paul officer: Chief Accounting Officer C/O BARNES & NOBLE EDUCATION, INC., 120 MOUNTAIN VIEW BLVD, BASKING RIDGE NJ 07920
Jonathan Shar officer: EVP, Retail & Client Solutions C/O BARNES & NOBLE EDUCATION, INC., 120 MOUNTAIN VIEW BLVD., BASKING RIDGE NJ 07920

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