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Digital Ally (Digital Ally) Operating Income : $-22.24 Mil (TTM As of Dec. 2023)


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What is Digital Ally Operating Income?

Digital Ally's Operating Income for the three months ended in Dec. 2023 was $-5.98 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-22.24 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Digital Ally's Operating Income for the three months ended in Dec. 2023 was $-5.98 Mil. Digital Ally's Revenue for the three months ended in Dec. 2023 was $5.93 Mil. Therefore, Digital Ally's Operating Margin % for the quarter that ended in Dec. 2023 was -100.76%.

Good Sign:

Digital Ally Inc operating margin is expanding. Margin expansion is usually a good sign.

Digital Ally's 5-Year average Growth Rate for Operating Margin % was 5.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Digital Ally's annualized ROC % for the quarter that ended in Dec. 2023 was -59.25%. Digital Ally's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -324.84%.


Digital Ally Operating Income Historical Data

The historical data trend for Digital Ally'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.

Digital Ally Operating Income Chart

Digital Ally Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -12.03 -7.66 -14.76 -29.73 -22.24

Digital Ally Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -9.70 -6.17 -4.94 -5.15 -5.98

Digital Ally 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 Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-22.24 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.


Digital Ally  (NAS:DGLY) Operating Income Explanation

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

Digital Ally's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-23.916 * ( 1 - 0% )/( (40.738 + 39.992)/ 2 )
=-23.916/40.365
=-59.25 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

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

Digital Ally's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-27.324/( ( (8.486 + max(-5.022, 0)) + (8.337 + max(-6.512, 0)) )/ 2 )
=-27.324/( ( 8.486 + 8.337 )/ 2 )
=-27.324/8.4115
=-324.84 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.023 + 5.195 + 7.323) - (15.398 + 2.752 + 1.413)
=-5.022

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1.585 + 3.845 + 6.366) - (14.001 + 2.937 + 1.37)
=-6.512

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

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

Digital Ally's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=-5.979/5.934
=-100.76 %

* 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.


Digital Ally Operating Income Related Terms

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Digital Ally (Digital Ally) Business Description

Traded in Other Exchanges
N/A
Address
14001 Marshall Drive, Lenexa, KS, USA, 66215
Digital Ally Inc produces digital video imaging and storage products for use in law enforcement, security, and commercial applications. Its products are an in-car digital video/audio recorder contained in a rear-view mirror for use in law enforcement and commercial fleets. It can integrate electronic, radio, computer and multi-media technologies to create solutions to address needs in a variety of other industries and markets, including mass transit, school bus, taxicab and military. The company sells its products to law enforcement agencies and other security organizations and consumer and commercial fleet operators through direct sales domestically and third-party distributors internationally. It has three segments: Video Solutions Segment, Revenue Cycle Management and Ticketing Segment.
Executives
Daniel Duke Daughtery director C/O DIGITAL ALLY, INC., 14001 MARSHALL DRIVE, LENEXA KS 66215
Hoffmann Christian J. Iii director ONE RENAISSANCE SQUARE, TWO NORTH CENTRAL AVENUE, PHOENIX AZ 85004
Peng Han officer: Chief Operating Officer 9301 W 144TH TERRACE, OVERLAND PARK KS 66221
Stanton E Ross director, officer: Chairman, President, and CEO 15612 COLLEGE BLVD., LENEXA KS 66219
Daniel F Hutchins director 11900 COLLEGE BOULEVARD, SUITE 310, OVERLAND PARK KS 66210
Thomas J Heckman officer: CFO, Treasurer & Secretary 15612 COLLEGE BLVD., LENEXA KS 66219
Michael Caufield officer: VP of Strategic Development 15612 COLLEGE BLVD., LENEXA KS 66219
Leroy C Richie director 15612 COLLEGE BLVD., LENEXA KS 66219
Elliot M Kaplan director 9705 LOIRET BLVD., LENEXA KS 66219
Stephen Gans director, 10 percent owner 14850 NW 44TH COURT, OPA LOCKA FL 33054
Steven Phillips officer: Vice President of Engineering 9705 LOIRET BLVD., LENEXA KS 66219
Bernard A Bianchino director 9601 W. 156TH STREET, OVERLAND PARK KS 66221
Edward Smith officer: Vice President of Operations 7311 W 130TH STREET, SUITE 170, OVERLAND PARK KS 66213
Kenneth L Mccoy officer: Vice President of Marketing 7311 W. 130TH, SUITE 170, OVERLAND PARK KS 66213
Robert D Haler officer: Exec Vice Pres, of Product Dev 7311 WEST 130TH, SUITE 170, OVERLAND PARK KS 66213

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