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Nutanix Operating Income

: $-829 Mil (TTM As of Jul. 2020)
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Nutanix's Operating Income for the three months ended in Jul. 2020 was $-171 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2020 was $-829 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Nutanix's Operating Income for the three months ended in Jul. 2020 was $-171 Mil. Nutanix's Revenue for the three months ended in Jul. 2020 was $328 Mil. Therefore, Nutanix's Operating Margin % for the quarter that ended in Jul. 2020 was -52.26%.

Warning Sign:

Nutanix Inc operating margin has been in 5-year decline. The average rate of decline per year is -9.8%.

Nutanix's 5-Year average Growth Rate for Operating Margin % was -9.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Nutanix's annualized ROC % for the quarter that ended in Jul. 2020 was -55.87%. Nutanix's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2020 was -248.02%.


Nutanix Operating Income Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Nutanix Annual Data
Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20
Operating Income Premium Member Only Premium Member Only Premium Member Only -104.63 -348.41 -280.41 -598.04 -828.92

Nutanix Quarterly Data
Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20
Operating Income 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 Premium Member Only Premium Member Only Premium Member Only -182.52 -220.34 -207.06 -230.17 -171.35

Nutanix 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 Jul. 2020 was -220.337 (Oct. 2019 ) + -207.059 (Jan. 2020 ) + -230.173 (Apr. 2020 ) + -171.352 (Jul. 2020 ) = $-829 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Nutanix  (NAS:NTNX) Operating Income Explanation

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

Nutanix's annualized ROC % for the quarter that ended in Jul. 2020 is calculated as:

ROC % (Q: Jul. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Apr. 2020 ) + Invested Capital (Q: Jul. 2020 ))/ count )
=-685.408 * ( 1 - -2.34% )/( (1238.519 + 1272.532)/ 2 )
=-701.4465472/1255.5255
=-55.87 %

where

Invested Capital(Q: Apr. 2020 )
=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))
=1773.341 - 153.013 - ( 732.137 - max(0, 713.384 - 1095.193+732.137))
=1238.519

Invested Capital(Q: Jul. 2020 )
=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))
=1768.547 - 162.198 - ( 719.778 - max(0, 760.203 - 1094.02+719.778))
=1272.532

Note: The Operating Income data used here is four times the quarterly (Jul. 2020) data.

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

Nutanix's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2020 is calculated as:

ROC (Joel Greenblatt) %(Q: Jul. 2020 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Apr. 2020  Q: Jul. 2020
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-685.408/( ( (282.207 + max(-332.194, 0)) + (270.498 + max(-366.33, 0)) )/ 2 )
=-685.408/( ( 282.207 + 270.498 )/ 2 )
=-685.408/276.3525
=-248.02 %

where Working Capital is:

Working Capital(Q: Apr. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(236.69 + 0 + 110.129) - (153.013 + 503.311 + 22.689)
=-332.194

Working Capital(Q: Jul. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(242.516 + 0 + 114.788) - (162.198 + 534.572 + 26.864)
=-366.33

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jul. 2020) EBIT data.

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

Nutanix's Operating Margin % for the quarter that ended in Jul. 2020 is calculated as:

Operating Margin %=Operating Income (Q: Jul. 2020 )/Revenue (Q: Jul. 2020 )
=-171.352/327.874
=-52.26 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Nutanix Operating Income Related Terms


Nutanix Operating Income Headlines

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