Pep Boys - Manny Moe & Jack (Pep Boys - Manny Moe & Jack) Operating Income : $9 Mil (TTM As of Oct. 2015)

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What is Pep Boys - Manny Moe & Jack Operating Income?

Pep Boys - Manny Moe & Jack's Operating Income for the three months ended in Oct. 2015 was $4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2015 was $9 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Pep Boys - Manny Moe & Jack's Operating Income for the three months ended in Oct. 2015 was $4 Mil. Pep Boys - Manny Moe & Jack's Revenue for the three months ended in Oct. 2015 was $508 Mil. Therefore, Pep Boys - Manny Moe & Jack's Operating Margin % for the quarter that ended in Oct. 2015 was 0.87%.

Pep Boys - Manny Moe & Jack'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. Pep Boys - Manny Moe & Jack's annualized ROC % for the quarter that ended in Oct. 2015 was 1.40%. Pep Boys - Manny Moe & Jack's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2015 was 2.74%.

Pep Boys - Manny Moe & Jack Operating Income Historical Data

The historical data trend for Pep Boys - Manny Moe & Jack'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.

Pep Boys - Manny Moe & Jack Operating Income Chart

Pep Boys - Manny Moe & Jack Annual Data

Trend

Jan06

Jan07

Jan08

Jan09

Jan10

Jan11

Jan12

Jan13

Jan14

Jan15

Operating Income

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82.58

65.57

11.65

22.30

-18.86

Pep Boys - Manny Moe & Jack Quarterly Data
	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15
Operating Income	Get a 7-Day Free Trial															0.57	-28.75	23.14	10.57	4.43

Pep Boys - Manny Moe & Jack 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. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $9 Mil.

Pep Boys - Manny Moe & Jack (NYSE:PBY) Operating Income Explanation

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

Pep Boys - Manny Moe & Jack's annualized ROC % for the quarter that ended in Oct. 2015 is calculated as:

	ROC % (Q: Oct. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2015 )	+	Invested Capital (Q: Oct. 2015 ))	/ count )
=	17.7 * ( 1 - 30.65% )	/	( (882.901	+	874.82)	/ 2 )
=	12.27495	/	878.8605
=	1.40 %

where

	Invested Capital		(Q: Jul. 2015 )
=	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	))
=	1507.18	-	561.871	-	( 62.408	-	max(0, 629.413	-	803.025	+	62.408	))
=	882.901

	Invested Capital		(Q: Oct. 2015 )
=	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	))
=	1492.355	-	546.203	-	( 71.332	-	max(0, 613.818	-	797.481	+	71.332	))
=	874.82

Note: The Operating Income data used here is four times the quarterly (Oct. 2015) data.

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

Pep Boys - Manny Moe & Jack's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2015 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Oct. 2015 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jul. 2015		Q: Oct. 2015
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	19.08	/	( ( (587.805 + max(113.204, 0))	+	(579.3 + max(114.331, 0)) )	/	2 )
=	19.08	/	( ( 701.009	+	693.631 )	/	2 )
=	19.08	/	697.32
=	2.74 %

where Working Capital is:

	Working Capital		(Q: Jul. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(29.762	+	636.692	+	74.163)	-	(561.871	+	65.542	+	0)
=	113.204

	Working Capital		(Q: Oct. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(31.743	+	630.608	+	63.798)	-	(546.203	+	65.615	+	0)
=	114.331

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Oct. 2015) EBIT data.

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

Pep Boys - Manny Moe & Jack's Operating Margin % for the quarter that ended in Oct. 2015 is calculated as:

Operating Margin %	=	Operating Income (Q: Oct. 2015 )	/	Revenue (Q: Oct. 2015 )
	=	4.425	/	508.136
	=	0.87 %

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.

Pep Boys - Manny Moe & Jack Operating Income Related Terms

Thank you for viewing the detailed overview of Pep Boys - Manny Moe & Jack's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Pep Boys - Manny Moe & Jack (Pep Boys - Manny Moe & Jack) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Pep Boys - Manny Moe & Jack (NYSE:PBY) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.pepboys.com

Pep Boys - Manny Moe & Jack began operations in 1921. The Company together with its subsidiaries offers automotive service, tires, parts and accessories. The Company operates in the U.S. automotive aftermarket, which has two general lines of business: the Service business, commonly known as Do-It-For-Me, or "DIFM" (service labor, installed merchandise and tires) and the Retail business, commonly known as Do-It-Yourself, or "DIY" (retail merchandise) and commercial. The Company's store format is the Supercenter, which serves both "DIFM" and "DIY" customers with quality service offerings and merchandise. The Company is complementing the existing Supercenter store base with Service & Tire Centers. These Service & Tire Centers are designed to capture market share and leverage the existing Supercenter and support infrastructure. The Company currently operates stores in 35 states and Puerto Rico. The Company has eight operating segments defined by geographic regions. Each Pep Boys Supercenter carries a similar product line, with variations based on the number and type of cars in the market where the store is located. A Pep Boys Service & Tire Center carries tires and a limited selection of its products. The Company's product lines include: tires batteries; new and remanufactured parts for domestic and import vehicles; chemicals and maintenance items; fashion, electronic, and performance accessories; and a limited amount of select non-automotive merchandise. In addition to offering various high quality name brand products, the Company sells an array of high quality products under various private label names. The Company sells tires under the names DEFINITY, FUTURA and CORNELL, and batteries under the name PROSTART. It also sells wheel covers under the name FUTURA; air filters, anti-freeze, chemicals, cv axles, hub assemblies, lubricants, oil, oil filters, oil treatments, transmission fluids, custom wheels and wiper blades under the name PROLINE; alternators, battery booster packs, alkaline type batteries and starters under the name PROSTART; power steering hoses, chassis parts and power steering pumps under the name PROSTEER; brakes under the name PROSTOP and brakes, batteries, starters, ignitions and chassis under the name VALUEGRADE. The Company's commercial automotive parts delivery program, branded PEP EXPRESS PARTS, is designed to increase the Company's market share with the professional installer and to leverage its inventory investment. The program satisfies the commercial customer's automotive inventory needs by taking advantage of the breadth and quality of the Company's parts inventory as well as its experience supplying its own service bays and mechanics. The Company has a point-of-sale system in all of its stores, which gathers sales and inventory data by stock-keeping unit from each store on a daily basis. It has an electronic parts catalog that allows its associates to efficiently look up the parts that its customers need

Executives

Andrea Weiss	director	23 RAMRAPO COURT WEST, GLENROCK NJ 07452
James A Mitarotonda	director	888 SEVENTH AVENUE 17TH FL, NEW YORK NY 10019
Robert L Nardelli	director	2455 PACES FERRY ROAD, ATLANTA GA 30339
Liebau Frederic Jack Jr	director	P.O. BOX 2200, PASADENA CA 91102-2200
Robert H Hotz	director	C/O MIKASA, 20633 S FORDYCE AVENUE, LONG BEACH CA 90810
Robert Rosenblatt	director	C/O TOMMY HILFIGER USA INC, 25 W 39TH STREET, NEW YORK NY 10018
Jane Scaccetti	director	3111 W ALLEGHENY AVE, PHILADELPHIA PA 19132
Bruce M Lisman	director	C/O MERCHANTS BANK, 275 KENNEDY DR, S. BURLINGTON VT 05403
Scott P Sider	director, officer: Chief Executive Officer	THE HERTZ CORPORATION, 225 BRAE BOULEVARD, PARK RIDGE NJ 07656
Matthew Goldfarb	director	C/O DIEBOLD NIXDORF, INCORPORATED, 5995 MAYFAIR ROAD, NORTH CANTON OH 44720
Icahn Enterprises Holdings L.p.	10 percent owner	16690 COLLINS AVE,, PH, SUNNY ISLES FL 33160
Carl C Icahn	10 percent owner	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160
Ggcp, Inc.	10 percent owner	189 MASON STREET, GREENWICH CT 06830
Gamco Investors, Inc. Et Al	10 percent owner	191 MASON STREET, GREENWICH CT 06830
Mario J Gabelli	10 percent owner	191 MASON STREET, GREENWICH CT 06830