NoFire Technologies (NoFire Technologies) Operating Income

: $-0.86 Mil (TTM As of May. 2010)

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

NoFire Technologies's Operating Income for the three months ended in May. 2010 was $-0.28 Mil. Its Operating Income for the trailing twelve months (TTM) ended in May. 2010 was $-0.86 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. NoFire Technologies's Operating Income for the three months ended in May. 2010 was $-0.28 Mil. NoFire Technologies's Revenue for the three months ended in May. 2010 was $0.28 Mil. Therefore, NoFire Technologies's Operating Margin % for the quarter that ended in May. 2010 was -99.64%.

NoFire Technologies'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. NoFire Technologies's annualized ROC % for the quarter that ended in May. 2010 was -24.43%. NoFire Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2010 was %.

NoFire Technologies Operating Income Historical Data

The historical data trend for NoFire Technologies'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.

NoFire Technologies Annual Data

Trend

Aug00

Aug01

Aug02

Aug03

Aug04

Aug05

Aug06

Aug07

Aug08

Aug09

Operating Income

-1.05

-1.03

-0.71

-1.01

-0.94

NoFire Technologies Quarterly Data
	Aug05	Nov05	Feb06	May06	Aug06	Nov06	Feb07	May07	Aug07	Nov07	Feb08	May08	Aug08	Nov08	Feb09	May09	Aug09	Nov09	Feb10	May10
Operating Income																-0.32	-0.19	-0.30	-0.10	-0.28

NoFire Technologies 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 May. 2010 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.86 Mil.

NoFire Technologies (OTCPK:NFTI) Operating Income Explanation

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

NoFire Technologies's annualized ROC % for the quarter that ended in May. 2010 is calculated as:

	ROC % (Q: May. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2010 )	+	Invested Capital (Q: May. 2010 ))	/ count )
=	-1.12 * ( 1 - 0% )	/	( (4.303	+	4.865)	/ 2 )
=	-1.12	/	4.584
=	-24.43 %

where

	Invested Capital		(Q: Feb. 2010 )
=	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	))
=	0.228	-	2.36	-	( 0.006	-	max(0, 6.626	-	0.191	+	0.006	))
=	4.303

	Invested Capital		(Q: May. 2010 )
=	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	))
=	0.273	-	2.523	-	( 0.003	-	max(0, 7.35	-	0.235	+	0.003	))
=	4.865

Note: The Operating Income data used here is four times the quarterly (May. 2010) data.

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

NoFire Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2010 is calculated as:

	ROC (Joel Greenblatt) %		(Q: May. 2010 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Feb. 2010		Q: May. 2010
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-1.12	/	( ( (0 + max(-5.469, 0))	+	(0 + max(-5.886, 0)) )	/	2 )
=	-1.12	/	( ( 0	+	0 )	/	2 )
=	-1.12	/	0
=	%

where Working Capital is:

	Working Capital		(Q: Feb. 2010 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.089	+	0.091	+	0.005)	-	(2.36	+	2.916	+	0.378)
=	-5.469

	Working Capital		(Q: May. 2010 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.117	+	0.105	+	0.01)	-	(2.523	+	3.217	+	0.378)
=	-5.886

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (May. 2010) EBIT data.

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

NoFire Technologies's Operating Margin % for the quarter that ended in May. 2010 is calculated as:

Operating Margin %	=	Operating Income (Q: May. 2010 )	/	Revenue (Q: May. 2010 )
	=	-0.28	/	0.281
	=	-99.64 %

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.

NoFire Technologies Operating Income Related Terms

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

NoFire Technologies (NoFire Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » NoFire Technologies Inc (OTCPK:NFTI) » Definitions » Operating Income

Traded in Other Exchanges

N/A

Address

5 James Street, South Hackensack, NJ, USA, 07606

Website

https://www.nofire.com

NoFire Technologies Inc is engaged in the development of non-toxic and fire-retardant coatings and textile wrap systems. It serves residential, commercial, industrial, maritime, and military applications.

Executives

Andrew H Tisch

10 percent owner

667 MADISON AVE, NEW YORK NY 10021-8087

NoFire Technologies (NoFire Technologies) Headlines

No Headlines