Dell-VMWare Tracking Stock (Dell-VMWare Tracking Stock) Operating Income : $1,979 Mil (TTM As of Oct. 2018)

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What is Dell-VMWare Tracking Stock Operating Income?

Dell-VMWare Tracking Stock's Operating Income for the three months ended in Oct. 2018 was $495 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2018 was $1,979 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Dell-VMWare Tracking Stock's Operating Income for the three months ended in Oct. 2018 was $495 Mil. Dell-VMWare Tracking Stock's Revenue for the three months ended in Oct. 2018 was $2,200 Mil. Therefore, Dell-VMWare Tracking Stock's Operating Margin % for the quarter that ended in Oct. 2018 was 22.50%.

Dell-VMWare Tracking Stock'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. Dell-VMWare Tracking Stock's annualized ROC % for the quarter that ended in Oct. 2018 was 8.09%. Dell-VMWare Tracking Stock's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2018 was %.

Dell-VMWare Tracking Stock Operating Income Historical Data

The historical data trend for Dell-VMWare Tracking Stock'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.

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Dell-VMWare Tracking Stock Operating Income Chart

Dell-VMWare Tracking Stock Annual Data

Trend

Jan17

Jan18

Operating Income

1,689.00

Dell-VMWare Tracking Stock Quarterly Data
	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18
Operating Income	Get a 7-Day Free Trial				410.00	593.00	382.00	509.00	495.00

Dell-VMWare Tracking Stock 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 Oct. 2018 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,979 Mil.

Dell-VMWare Tracking Stock (NYSE:DVMT) Operating Income Explanation

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

Dell-VMWare Tracking Stock's annualized ROC % for the quarter that ended in Oct. 2018 is calculated as:

	ROC % (Q: Oct. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2018 )	+	Invested Capital (Q: Oct. 2018 ))	/ count )
=	1980 * ( 1 - 3.19% )	/	( (23409	+	23962)	/ 2 )
=	1916.838	/	23685.5
=	8.09 %

where

	Invested Capital		(Q: Jul. 2018 )
=	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	))
=	23409	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	23409

	Invested Capital		(Q: Oct. 2018 )
=	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	))
=	23962	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	23962

Note: The Operating Income data used here is four times the quarterly (Oct. 2018) data.

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

Dell-VMWare Tracking Stock's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2018 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Oct. 2018 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jul. 2018		Q: Oct. 2018
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1980	/	( ( (0 + max(0, 0))	+	(0 + max(0, 0)) )	/	2 )
=	1980	/	( ( 0	+	0 )	/	2 )
=	1980	/	0
=	%

where Working Capital is:

	Working Capital		(Q: Jul. 2018 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0)	-	(0	+	0	+	0)
=	0

	Working Capital		(Q: Oct. 2018 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0)	-	(0	+	0	+	0)
=	0

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Oct. 2018) EBIT data.

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

Dell-VMWare Tracking Stock's Operating Margin % for the quarter that ended in Oct. 2018 is calculated as:

Operating Margin %	=	Operating Income (Q: Oct. 2018 )	/	Revenue (Q: Oct. 2018 )
	=	495	/	2200
	=	22.50 %

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.

Dell-VMWare Tracking Stock Operating Income Related Terms

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Dell-VMWare Tracking Stock (Dell-VMWare Tracking Stock) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Dell-VMWare Tracking Stock (NYSE:DVMT) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

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Address

Website

https://www.delltechnologies.com

Dell-VMWare Tracking Stock was incorporated in the state of Delaware on January 31, 2013 under the name of Denali Holding Inc. It changed its name to Dell Technologies Inc. on August 25, 2016. On September 7, 2016, a merger subsidiary of Dell Technologies merged with and into EMC Corporation, with EMC Corporation surviving the merger as a wholly-owned subsidiary of Dell Technologies. The company has issued a tracking stock to track the performance of a portion of Dell Technologies' economic interest in the VMware business. It is an information technology company. The company offers virtualization and cloud infrastructure solutions, which enable organizations to manage IT resources across complex multi-cloud, multi-device environments.

Executives

Richard J Rothberg	officer: General Counsel & Secretary	ONE DELL WAY, ROUND ROCK TX 78682
William F Scannell	officer: President, Global Sales	EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Thomas W Sweet	officer: Chief Financial Officer	ONE DELL WAY, ROUND ROCK TX 78682
Howard D Elias	officer: President, Services & Digital	C/O EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Ellen Jamison Kullman	director	UNITED TECHNOLOGIES CORP, 10 FARM SPRINGS ROAD, FARMINGTON CT 06032
William D Green	director	C/O ACCENTURE, 161 N CLARK STREET, CHICAGO IL 60601
Radakovich Lynn Vojvodich	director	C/O BOOKING HOLDINGS INC., 800 CONNECTICUT AVENUE, NORWALK CT 06854
David W Dorman	director	CVS HEALTH., ONE CVS DRIVE, WOONSOCKET RI 02895
Jeffrey W Clarke	officer: COO & Vice Chairman	C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682
Allison Dew	officer: Chief Marketing Officer	C/O DELL TECHNOLOGIES INC., ONE DELL WAY, ROUND ROCK TX 78682
Steven H Price	officer: Chief Human Resources Officer	ONE DELL WAY, ROUND ROCK TX 78682
Karen H Quintos	officer: Chief Customer Officer	ONE DELL WAY, ROUND ROCK TX 78682
Rory P Read	officer: Chief Operating Executive	ONE DELL WAY, ROUND ROCK TX 78682
Michael S Dell	director, 10 percent owner, officer: Chief Executive Officer	C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244
Brunilda Rios	officer: Chief Accounting Officer	C/O DELL TECHNOLOGIES INC., ONE DELL WAY, ROUND ROCK TX 78682