GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Eagle Pharmaceuticals Inc (NAS:EGRX) » Definitions » Operating Income

Eagle Pharmaceuticals (Eagle Pharmaceuticals) Operating Income : $41.0 Mil (TTM As of Jun. 2023)


View and export this data going back to 2014. Start your Free Trial

What is Eagle Pharmaceuticals Operating Income?

Eagle Pharmaceuticals's Operating Income for the three months ended in Jun. 2023 was $10.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was $41.0 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Eagle Pharmaceuticals's Operating Income for the three months ended in Jun. 2023 was $10.3 Mil. Eagle Pharmaceuticals's Revenue for the three months ended in Jun. 2023 was $64.6 Mil. Therefore, Eagle Pharmaceuticals's Operating Margin % for the quarter that ended in Jun. 2023 was 15.94%.

Warning Sign:

Eagle Pharmaceuticals Inc operating margin has been in a 5-year decline. The average rate of decline per year is -21.5%.

Eagle Pharmaceuticals's 5-Year average Growth Rate for Operating Margin % was -21.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Eagle Pharmaceuticals's annualized ROC % for the quarter that ended in Jun. 2023 was 7.36%. Eagle Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 was 48.63%.


Eagle Pharmaceuticals Operating Income Historical Data

The historical data trend for Eagle Pharmaceuticals'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.

Eagle Pharmaceuticals Operating Income Chart

Eagle Pharmaceuticals Annual Data
Trend Sep13 Sep14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 46.47 21.82 32.95 2.77 80.96

Eagle Pharmaceuticals Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 2.20 9.46 9.47 11.77 10.30

Eagle Pharmaceuticals 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 Jun. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $41.0 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.


Eagle Pharmaceuticals  (NAS:EGRX) Operating Income Explanation

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

Eagle Pharmaceuticals's annualized ROC % for the quarter that ended in Jun. 2023 is calculated as:

ROC % (Q: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Jun. 2023 ))/ count )
=41.216 * ( 1 - 44.46% )/( (306.875 + 315.013)/ 2 )
=22.8913664/310.944
=7.36 %

where

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

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

Eagle Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2023  Q: Jun. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=42.984/( ( (1.116 + max(80.803, 0)) + (1.013 + max(93.841, 0)) )/ 2 )
=42.984/( ( 81.919 + 94.854 )/ 2 )
=42.984/88.3865
=48.63 %

where Working Capital is:

Working Capital(Q: Mar. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(114.953 + 44.14 + 10.432) - (85.403 + 0 + 3.319)
=80.803

Working Capital(Q: Jun. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(115.14 + 42.482 + 13.13) - (74.455 + 0 + 2.456)
=93.841

When net working capital is negative, 0 is used.

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

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

Eagle Pharmaceuticals's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2023 )/Revenue (Q: Jun. 2023 )
=10.304/64.646
=15.94 %

* 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.


Eagle Pharmaceuticals Operating Income Related Terms

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


Eagle Pharmaceuticals (Eagle Pharmaceuticals) Business Description

Traded in Other Exchanges
Address
50 Tice Boulevard, Suite 315, Woodcliff Lake, NJ, USA, 07677
Eagle Pharmaceuticals Inc is a specialty pharmaceutical company. The company develops and commercializes injectable products in the areas of critical care, orphan diseases, and oncology. Its product portfolio consists of four approved products: Argatroban, Ryanodex, Belrapzo, and Bendeka. The company currently has multiple product candidates in advanced stages of development and is under review for approval by the Food and Drug Administration.
Executives
Scott Tarriff director, officer: President and CEO 28 TUDOR ROSE TERRACE, MAHWAH NJ 07430
Richard A. Edlin director C/O EAGLE PHARMACEUTICALS, INC., 50 TICE BOULEVARD, SUITE 315, WOODCLIFF LAKE NJ 07677
Michael Shawn Moran officer: EVP, Chief Commercial Officer C/O EAGLE PHARMACEUTICALS, INC., 50 TICE BLVD., SUITE 315, WOODCLIFF NJ 07677
Luciana Borio director C/O EAGLE PHARMACEUTICALS, INC., 50 TICE BLVD., SUITE 315, WOODCLIFF LAKE NJ 07677
Brian Joseph Cahill officer: Chief Financial Officer C/O EAGLE PHARMACEUTICALS, INC., 50 TICE BOULEVARD, SUITE 315, WOODCLIFF LAKE NJ 07677
Judith Ng-cashin officer: Chief Medical Officer C/O EAGLE PHARMACEUTICALS, INC., 50 TICE BOULEVARD, SUITE 315, WOODCLIFF LAKE NJ 07677
Hudson Executive Capital Lp director C/O CADWALADER, WICKERSHAM & TAFT, LLP, 200 LIBERTY STREET, NEW YORK NY 10281
Hec Management Gp Llc director 1185 AVENUE OF THE AMERICAS, 32ND FLOOR, NEW YORK NY 10036
Jennifer K. Simpson director C/O DELCATH SYSTEMS, INC., 810 SEVENTH AVENUE, SUITE 3505, NEW YORK NY 10019
Douglas L Braunstein director HUDSON EXECUTIVE CAPITAL LP, 570 LEXINGTON AVENUE, 35TH FLOOR, NEW YORK NY 10022
Sander A Flaum director 630 PARK AVE, NEW YORK NY 10019
Pete A. Meyers officer: Chief Financial Officer C/O TETRALOGIC PHARMACEUTICALS CORP, 343 PHOENIXVILLE PIKE, MALVERN PA 19355
David Pernock director 405 EAGLEVIEW BOULEVARD, EXTON PA 19341
Proquest Investments Iv, L.p. 10 percent owner 2430 VANDERBILT BEACH ROAD, #108 - 190, NAPLES FL 34109
Steven L. Krill officer: Chief Scientific Officer C/O EAGLE PHARMCEUTICALS, INC., 50 TICE BLVD. SUITE 315, WOODCLIFF LAKE NJ 07677

Eagle Pharmaceuticals (Eagle Pharmaceuticals) Headlines

From GuruFocus