Innovative Solutions and Support (Innovative Solutions and Support) Operating Income : $8.40 Mil (TTM As of Dec. 2023)

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What is Innovative Solutions and Support Operating Income?

Innovative Solutions and Support's Operating Income for the three months ended in Dec. 2023 was $1.62 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $8.40 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Innovative Solutions and Support's Operating Income for the three months ended in Dec. 2023 was $1.62 Mil. Innovative Solutions and Support's Revenue for the three months ended in Dec. 2023 was $9.31 Mil. Therefore, Innovative Solutions and Support's Operating Margin % for the quarter that ended in Dec. 2023 was 17.35%.

Innovative Solutions and Support'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. Innovative Solutions and Support's annualized ROC % for the quarter that ended in Dec. 2023 was 9.50%. Innovative Solutions and Support's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 21.53%.

Innovative Solutions and Support Operating Income Historical Data

The historical data trend for Innovative Solutions and Support'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.

Innovative Solutions and Support Operating Income Chart

Innovative Solutions and Support Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

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1.53

2.75

3.90

7.22

7.36

Innovative Solutions and Support Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															1.43	1.49	3.65	1.62	1.64

Innovative Solutions and Support 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 $8.40 Mil.

Innovative Solutions and Support (NAS:ISSC) Operating Income Explanation

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

Innovative Solutions and Support'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 )
=	6.46 * ( 1 - 21.82% )	/	( (55.617	+	50.712)	/ 2 )
=	5.050428	/	53.1645
=	9.50 %

where

	Invested Capital		(Q: Sep. 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	))
=	62.957	-	4.243	-	( 3.097	-	max(0, 6.399	-	34.674	+	3.097	))
=	55.617

	Invested Capital		(Q: Dec. 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	))
=	55.698	-	4.519	-	( 0.467	-	max(0, 15.371	-	26.927	+	0.467	))
=	50.712

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

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

Innovative Solutions and Support'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 )
=	6.848	/	( ( (7.907 + max(26.704, 0))	+	(7.943 + max(21.065, 0)) )	/	2 )
=	6.848	/	( ( 34.611	+	29.008 )	/	2 )
=	6.848	/	31.8095
=	21.53 %

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)
=	(9.744	+	6.14	+	15.206)	-	(4.243	+	0.143	+	0)
=	26.704

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(5.584	+	7.8	+	12.429)	-	(4.519	+	0.228	+	0.0010000000000012)
=	21.065

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 %:

Innovative Solutions and Support'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 )
	=	1.615	/	9.308
	=	17.35 %

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.

Innovative Solutions and Support Operating Income Related Terms

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Innovative Solutions and Support (Innovative Solutions and Support) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Innovative Solutions and Support Inc (NAS:ISSC) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

720 Pennsylvania Drive, Exton, PA, USA, 19341

Website

https://www.innovative-ss.com

Innovative Solutions and Support Inc is a systems integrator that designs, manufactures, sells, and services air data equipment, engine display systems, standby equipment, primary flight guidance, and cockpit display systems for retrofit applications and original equipment manufacturers. The company supplies integrated Flight Management Systems, Flat Panel Display Systems, Integrated Standby Units, Advanced Global Positioning System receivers that enable reduced carbon footprint navigation, and an Autothrottle, which allows a pilot to automatically control the power setting of the engine and is designed to reduce pilot workload and enhance safety. It sells its products to both the OEM and the retrofit markets.

Executives

Glen R Bressner	director	720 PENNSYLAVANIA DR, EXTON PA 19341
Estate Of Geoffrey S. M. Hedrick	10 percent owner	C/O INNOVATIVE SOLUTIONS AND SUPPORT INC, 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Winston J Churchill	director	C/O SCP PARTNERS, SUITE 300, 1200 LIBERTY RIDGE DRIVE, WAYNE PA 19087
Christopher Harborne	10 percent owner	23F M THAI TOWER, ALL SEASONS PLACE, 87 WIRELESS ROAD, BANGKOK W1 10300
Michael Linacre	officer: Chief Financial Officer	720 PENNSYLVANIA DRIVE, EXTON PA 19341
Parizad Olver	director	C/O SEMPER PARATUS ACQUISITION CORP., 767 THIRD AVENUE, 38TH FLOOR, NEW YORK NY 10017
Mittelstaedt Robert E Jr	director
Stephen L Belland	director	5717 COMPASS COURT, CAPE CORAL FL 33914
Roger Anthony Carolin	director	1200 LIBERTY RIDGE DRIVE, WAYNE PA 19087
Relland Winand	officer: Chief Financial Officer	C/O INNOVATIVE SOLUTIONS & SUPPORT INC., 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Shahram Askarpour	officer: President	C/O INNOVATIVE SOLUTIONS & SUPPORT, INC., 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Ronald Albrecht	officer: Chief Financial Officer	C/O INNOVATIVE SOLUTIONS AND SUPPORT INC, 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Robert Mionis	director
John C Long	officer: Chief Financial Officer	2400 BERNVILLE ROAD, READING PA 19612
Raymond J Wilson	director	720 PENNSYLVANIA DRIVE, EXTON PA 19341