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Rekor Systems (Rekor Systems) Operating Income : $-42.12 Mil (TTM As of Dec. 2023)


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What is Rekor Systems Operating Income?

Rekor Systems's Operating Income for the three months ended in Dec. 2023 was $-9.35 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-42.12 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Rekor Systems's Operating Income for the three months ended in Dec. 2023 was $-9.35 Mil. Rekor Systems's Revenue for the three months ended in Dec. 2023 was $11.07 Mil. Therefore, Rekor Systems's Operating Margin % for the quarter that ended in Dec. 2023 was -84.46%.

Warning Sign:

Rekor Systems Inc operating margin has been in a 5-year decline. The average rate of decline per year is -34.5%.

Rekor Systems's 5-Year average Growth Rate for Operating Margin % was -34.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Rekor Systems's annualized ROC % for the quarter that ended in Dec. 2023 was -49.34%. Rekor Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -194.17%.


Rekor Systems Operating Income Historical Data

The historical data trend for Rekor Systems'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.

Rekor Systems Operating Income Chart

Rekor Systems Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial -7.53 -11.85 -31.83 -50.95 -42.12

Rekor Systems Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -10.09 -12.69 -10.28 -9.80 -9.35

Rekor Systems 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 $-42.12 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.


Rekor Systems  (NAS:REKR) Operating Income Explanation

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

Rekor Systems'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 )
=-37.384 * ( 1 - -0.28% )/( (75.859 + 76.088)/ 2 )
=-37.4886752/75.9735
=-49.34 %

where

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

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

Rekor Systems'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 )
=-48.88/( ( (25.587 + max(-1.067, 0)) + (24.761 + max(-5.587, 0)) )/ 2 )
=-48.88/( ( 25.587 + 24.761 )/ 2 )
=-48.88/25.174
=-194.17 %

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)
=(7.024 + 3.459 + 1.999) - (8.721 + 4.503 + 0.325)
=-1.067

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4.11 + 3.058 + 1.598) - (7.963 + 3.604 + 2.786)
=-5.587

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 %:

Rekor Systems'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 )
=-9.346/11.066
=-84.46 %

* 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.


Rekor Systems Operating Income Related Terms

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


Rekor Systems (Rekor Systems) Business Description

Traded in Other Exchanges
Address
6721 Columbia Gateway Drive, Suite 400, Columbia, MD, USA, 21046
Rekor Systems Inc is a United States-based company. It is engaged in providing real-time roadway intelligence through AI-driven decisions. Rekor bridges commercial and government sectors with actionable, real-time vehicle recognition data. The firm uses artificial intelligence to analyze video streams and transform them into AI-driven decisions. Its machine learning software can turn most IP cameras into accurate vehicle recognition devices used to help protect lives, increase brand loyalty, and enhance operations and logistics. Its geographical segments are the United States, Canada, and Others, of which the majority of its revenue comes from the United States.
Executives
Timothy J Davenport director C/O REKOR SYSTEMS, INC., 6721 COLUMBIA GATEWAY DRIVE, SUITE 400, COLUMBIA MD 21046
Sanjay E Sarma director C/O REKOR SYSTEMS, INC., 6721 COLUMBIA GATEWAY DRIVE, SUITE 400, COLUMBIA MD 21046
Robert Alan Berman director, 10 percent owner, officer: Chief Executive Officer C/O NOVUME SOLUTIONS, INC., 14420 ALBEMARLE POINT PLACE, SUITE 200, CHANTILLY VA 20151
Arctis Global Llc 10 percent owner AM TOWERS, 207 CALLE DEL PARQUE, 7TH FLOOR, SAN JUAN PR 00912-3242
Debra Shakerdge-hennessy officer: Chief People Officer C/O REKOR SYSTEMS, INC., 6721 COLUMBIA GATEWAY DRIVE, SUITE 400, COLUMBIA MD 21046
David Philip Desharnais officer: President C/O REKOR SYSTEMS, INC., 7172 COLUMBIA GATEWAY DRIVE, SUITE 400, COLUMBIA MD 21046
Eyal Hen officer: CFO REKOR SYSTEMS, INC., 14420 ALBERMARLE POINT PLACE, SUITE 200, CHANTILLY VA 20151
Glenn S Goord director NOVUME SOLUTIONS, INC., 14420 ALBEMARLE POINT PLACE, SUITE 200, CHANTILLY VA 20151
Matthew Anthony Hill officer: Chief Science Officer 324 ANNISON DRIVE, COMMERCE TOWNSHIP MI 48382
Rodney Hillman officer: COO 3201 GLOUCHESTER DRIVE, FALLSTON MD 21047
Christopher Kadoch officer: Chief Technology Officer C/O REKOR SYSTEMS, INC., 7172 COLUMBIA GATEWAY DRIVE, SUITE 400, COLUMBIA MD 21046
Noam Shai Maital officer: CEO, Waycare Technologies Ltd. 13535 VENTURA BLVD, SUITE C 410, SHERMAN OAKS CA 91423
Michael David Dunbar officer: Chief Revenue Officer C/O REKOR SYSTEMS, INC., 7172 COLUMBIA GATEWAY DRIVE, SUITE 400, COLUMBIA MD 21046
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Goldman Sachs & Co. Llc 10 percent owner 200 WEST STREET, NEW YORK NY 10282