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PRGX Global (PRGX Global) Operating Income : $9.2 Mil (TTM As of Sep. 2020)


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What is PRGX Global Operating Income?

PRGX Global's Operating Income for the three months ended in Sep. 2020 was $4.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2020 was $9.2 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. PRGX Global's Operating Income for the three months ended in Sep. 2020 was $4.8 Mil. PRGX Global's Revenue for the three months ended in Sep. 2020 was $41.5 Mil. Therefore, PRGX Global's Operating Margin % for the quarter that ended in Sep. 2020 was 11.66%.

PRGX Global'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. PRGX Global's annualized ROC % for the quarter that ended in Sep. 2020 was 15.71%. PRGX Global's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2020 was 42.22%.


PRGX Global Operating Income Historical Data

The historical data trend for PRGX Global'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.

PRGX Global Operating Income Chart

PRGX Global Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.07 3.28 4.42 5.73 -1.46

PRGX Global Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
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 -0.31 5.59 -2.13 0.91 4.84

PRGX Global 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 Sep. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $9.2 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.


PRGX Global  (NAS:PRGX) Operating Income Explanation

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

PRGX Global's annualized ROC % for the quarter that ended in Sep. 2020 is calculated as:

ROC % (Q: Sep. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2020 ) + Invested Capital (Q: Sep. 2020 ))/ count )
=19.372 * ( 1 - 32.43% )/( (84.71 + 81.91)/ 2 )
=13.0896604/83.31
=15.71 %

where

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

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

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

ROC (Joel Greenblatt) %(Q: Sep. 2020 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2020  Q: Sep. 2020
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=18.824/( ( (30.181 + max(15.387, 0)) + (30.792 + max(12.805, 0)) )/ 2 )
=18.824/( ( 45.568 + 43.597 )/ 2 )
=18.824/44.5825
=42.22 %

where Working Capital is:

Working Capital(Q: Jun. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(32.748 + 0 + 4.925) - (16.164 + 1.97 + 4.152)
=15.387

Working Capital(Q: Sep. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(35.977 + 0 + 4.702) - (21.61 + 1.821 + 4.443)
=12.805

When net working capital is negative, 0 is used.

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

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

PRGX Global's Operating Margin % for the quarter that ended in Sep. 2020 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2020 )/Revenue (Q: Sep. 2020 )
=4.843/41.532
=11.66 %

* 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.


PRGX Global Operating Income Related Terms

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PRGX Global (PRGX Global) Business Description

Traded in Other Exchanges
N/A
Address
600 Galleria Parkway, Suite 100, Atlanta, GA, USA, 30339-5986
PRGX Global Inc is engaged in providing recovery audit and spends analytics service. Its services include recovery audit, spend analytics and supplier information management services. The company conducts its operations through three reportable segments: Recovery Audit Services - Americas, Recovery Audit Services - Europe/Asia-Pacific and Adjacent Services. The Recovery Audit Services - Americas segment are the largest segment in terms of clients served and revenue generated. The Recovery Audit Services - Europe/Asia-Pacific segment represents recovery audit services provided in Europe, Asia, and the Pacific region. Adjacent Services offerings are generally provided to clients on a global basis. The vast majority of the firm's revenue comes from recovery audit.
Executives
Matthew A Drapkin director 10 CORBIN DRIVE, 3RD FLOOR, DARIEN CT 06820
Mylle H Mangum director 3231 S E SIXTH AVENUE, TOPEKA KS 66607
Kevin Costello director C/O ARIBA INC, 807 11TH AVENUE, SUNNYVALE CA 94089
Joseph E Whitters director
William F Kimble director 6900 E. LAYTON AVE., SUITE 900, DENVER CO 80237
Simone C Walsh officer: Controller 600 GALLERIA PARKWAY, SUITE 100, ATLANTA GA 30339
Kurt Abkemeier officer: Chief Financial Officer C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
Victor A Allums officer: SVP & General Counsel 600 GALLERIA PKWY SE SUITE 100 ATLANTA GA 30339
Ronald E. Stewart director, officer: President & CEO 5360 LONG ISLAND DRIVE ATLANTA GA 30327
Gregory J Owens director, officer: Executive Chairman 2755 CAMPUS DR 3RD FL SAN MATEO CA 94403-2538
Michael Cochrane officer: SVP, COO - Global Audit Oper. 600 GALLERIA PARKWAY SUITE 100 ATLANTA GA 30342
Headlands Strategic Opportunities Fund, Lp (the Partnership) 10 percent owner ONE EMBARCADERO CENTER SUITE 1600 SAN FRANCISCO CA 94111
Headlands Capital Management, Llc other: General Partner of 10% Owner ONE FERRY BUILDING SUITE 255 SAN FRANCISCO CA 94111
Cost David W Jr other: Member of investment committee ONE FERRY BUILDING SUITE 255 SAN FRANCISCO CA 94111
Park David E Iii other: Member of investment committee ONE FERRY BUILDING SUITE 255 SAN FRANCISCO CA 94111