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Digital World Acquisition Operating Income

: $-3.31 Mil (TTM As of Mar. 2022)
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Digital World Acquisition's Operating Income for the three months ended in Mar. 2022 was $-1.91 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2022 was $-3.31 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Digital World Acquisition's Operating Income for the three months ended in Mar. 2022 was $-1.91 Mil. Digital World Acquisition's Revenue for the three months ended in Mar. 2022 was $0.00 Mil. Therefore, Digital World Acquisition's Operating Margin % for the quarter that ended in Mar. 2022 was %.

Digital World Acquisition'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. Digital World Acquisition's annualized ROC % for the quarter that ended in Mar. 2022 was -2.61%. Digital World Acquisition's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2022 was %.


Digital World Acquisition Operating Income Historical Data

The historical data trend for Digital World Acquisition'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 World Acquisition Annual Data
Trend Dec20 Dec21
Operating Income
- -1.39

Digital World Acquisition Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22
Operating Income - - -0.16 -1.23 -1.91

Digital World Acquisition 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 Mar. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $-3.31 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 World Acquisition  (NAS:DWAC) Operating Income Explanation

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

Digital World Acquisition's annualized ROC % for the quarter that ended in Mar. 2022 is calculated as:

ROC % (Q: Mar. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2021 ) + Invested Capital (Q: Mar. 2022 ))/ count )
=-7.656 * ( 1 - 0% )/( (293.422 + 293.693)/ 2 )
=-7.656/293.5575
=-2.61 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2022) data.

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

Digital World Acquisition's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2022 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2021  Q: Mar. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-7.656/( ( (0 + max(-0.443, 0)) + (0 + max(-1.711, 0)) )/ 2 )
=-7.656/( ( 0 + 0 )/ 2 )
=-7.656/0
= %

where Working Capital is:

Working Capital(Q: Dec. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0.241) - (0.684 + 0 + 0)
=-0.443

Working Capital(Q: Mar. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0.241) - (1.952 + 0 + 0)
=-1.711

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2022) EBIT data.

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

Digital World Acquisition's Operating Margin % for the quarter that ended in Mar. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2022 )/Revenue (Q: Mar. 2022 )
=-1.914/0
= %

* 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 World Acquisition Operating Income Related Terms

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


Digital World Acquisition Business Description

Digital World Acquisition logo
Industry
Traded in Other Exchanges
Address
78 SW 7th Street, Miami, FL, USA, 33130
Website
Digital World Acquisition Corp is a blank check company.
Executives
Barclays Plc 10 percent owner 1 CHURCHILL PLACE CANARY WHARF LONDON X0 E14 5HP
Orlando Patrick Francis director, 10 percent owner, officer: CEO and Chairman 212 E 48TH STREET - PHB NEW YORK NY 10017
Shaner Justin director 2000 S BAYSHORE DR UNIT 20 MIAMI FL 33133
Swider Eric director 2000 S BAYSHORE DR UNIT 20 MIAMI FL 33133
Veloso Rodrigo director 78 SW 7TH STREET MIAMI FL 33130
Garelick Bruce J. director 78 SW 7TH STREET MIAMI FL 33130
Montie Jacobson director 78 SW 7TH STREET MIAMI FL 33130
Orleans-braganza Luiz officer: Chief Financial Officer 78 SW 7TH STREET MIAMI FL 33130
Arc Global Investments Ii Llc 10 percent owner 78 SW 7TH STREET MIAMI FL 33130

Digital World Acquisition Headlines

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