GURUFOCUS.COM » STOCK LIST » USA » NAS » Nutanix Inc (NAS:NTNX) » Definitions » Operating Income
Switch to:

Nutanix (NAS:NTNX) Operating Income

: $-400 Mil (TTM As of Oct. 2022)
View and export this data going back to 2016. Start your Free Trial

Nutanix's Operating Income for the three months ended in Oct. 2022 was $-80 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2022 was $-400 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Nutanix's Operating Income for the three months ended in Oct. 2022 was $-80 Mil. Nutanix's Revenue for the three months ended in Oct. 2022 was $434 Mil. Therefore, Nutanix's Operating Margin % for the quarter that ended in Oct. 2022 was -18.51%.

Warning Sign:

Nutanix Inc operating margin has been in a 5-year decline. The average rate of decline per year is -1.5%.

Nutanix's 5-Year average Growth Rate for Operating Margin % was -1.50% 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 Oct. 2022 was -20.22%. Nutanix's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2022 was -137.02%.


Nutanix Operating Income Historical Data

The historical data trend for Nutanix'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.

Nutanix Annual Data
Trend Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22
Operating Income
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -280.41 -598.04 -828.92 -660.78 -457.44

Nutanix Quarterly Data
Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22
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 -137.26 -94.42 -92.35 -133.42 -80.26

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 Oct. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $-400 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.


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 Oct. 2022 is calculated as:

ROC % (Q: Oct. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2022 ) + Invested Capital (Q: Oct. 2022 ))/ count )
=-321.028 * ( 1 - -5.81% )/( (1674.907 + 1684.512)/ 2 )
=-339.6797268/1679.7095
=-20.22 %

where

Invested Capital(Q: Jul. 2022 )
=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))
=2365.749 - 183.085 - ( 1324.279 - max(0, 1150.224 - 1657.981+1324.279))
=1674.907

Invested Capital(Q: Oct. 2022 )
=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))
=2357.422 - 148.614 - ( 1388.058 - max(0, 1147.799 - 1672.095+1388.058))
=1684.512

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

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

Nutanix's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2022 is calculated as:

ROC (Joel Greenblatt) %(Q: Oct. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jul. 2022  Q: Oct. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-311.772/( ( (232.18 + max(-638.779, 0)) + (222.883 + max(-688.223, 0)) )/ 2 )
=-311.772/( ( 232.18 + 222.883 )/ 2 )
=-311.772/227.5315
=-137.02 %

where Working Capital is:

Working Capital(Q: Jul. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(124.559 + 0 + 201.629) - (183.085 + 720.993 + 60.889)
=-638.779

Working Capital(Q: Oct. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(83.638 + 0 + 194.037) - (148.614 + 768.918 + 48.366)
=-688.223

When net working capital is negative, 0 is used.

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

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

Nutanix's Operating Margin % for the quarter that ended in Oct. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Oct. 2022 )/Revenue (Q: Oct. 2022 )
=-80.257/433.609
=-18.51 %

* 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.


Nutanix Operating Income Related Terms

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


Nutanix (NAS:NTNX) Business Description

Nutanix logo
Traded in Other Exchanges
Address
1740 Technology Drive, Suite 150, San Jose, CA, USA, 95110
Nutanix Inc provides native hybrid cloud capabilities for businesses. The company offers Enterprise Cloud Platform to businesses for various uses such as web-scale engineering and consumer-grade design, virtualization, and storage into a resilient, and software-defined solution. Geographically, it derives a majority of revenue from the United States and also has a presence in Europe, the Middle East, Asia Pacific, Africa, and other regions.
Executives
Rukmini Sivaraman officer: Chief Financial Officer 1740 TECHNOLOGY DR., SUITE 150, SAN JOSE CA 95110
Teresa Gayle Sheppard director C/O ENVISTA HOLDINGS CORPORATION, 200 S. KRAEMER BLVD., BLDG. E, BREA CA 92821
Susan L Bostrom director
Craig Conway director SALESFORCE TOWER, 415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 94105
Brian Mark Stevens director 25 HOOPER HILL RD., NEW BOSTON NH 03070
Virginia Gambale director C/O JETBLUE AIRWAYS CORP., 27-01 QUEENS PLAZA NORTH, LONG ISLAND CITY NY 11101
Rajiv Ramaswami director, officer: President and CEO 5300 CALIFORNIA AVENUE, IRVINE CA 92617
Kaddaras Christopher Nicholas Jr officer: Chief Revenue Officer C/O NUTANIX, INC., 1740 TECHNOLOGY DR., STE 150, SAN JOSE CA 95110
Tyler Wall officer: Chief Legal Officer CHORDIANT SOFTWARE, INC., 20400 STEVENS CREEK BLVD., STE. 400, CUPERTINO CA 94014
Aaron Boynton officer: Chief Accounting Officer C/O NUTANIX, INC., 1740 TECHNOLOGY AVE., SUITE 150, SAN JOSE CA 95110
Tarkan Maner officer: Chief Commercial Officer C/O NUTANIX, INC., 1740 TECHNOLOGY AVE., SUITE 150, SAN JOSE CA 95110
David Humphrey director C/O BAIN CAPITAL PARTNERS, LLC, JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116
De Groen Max Pieter director 200 CLARENDON STREET, BOSTON MA 02116
Sohaib Abbasi director 100 EAST DAVIE STREET, RALEIGH NC 27601
Louis J Attanasio officer: Chief Revenue Officer 1740 TECHNOLOGY AVE., SUITE 150, SAN JOSE CA 95110

Nutanix (NAS:NTNX) Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
premium membership