Solera Holdings (Solera Holdings) Operating Income : $199 Mil (TTM As of Dec. 2015)

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What is Solera Holdings Operating Income?

Solera Holdings's Operating Income for the three months ended in Dec. 2015 was $70 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2015 was $199 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Solera Holdings's Operating Income for the three months ended in Dec. 2015 was $70 Mil. Solera Holdings's Revenue for the three months ended in Dec. 2015 was $308 Mil. Therefore, Solera Holdings's Operating Margin % for the quarter that ended in Dec. 2015 was 22.76%.

Solera Holdings'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. Solera Holdings's annualized ROC % for the quarter that ended in Dec. 2015 was 21.04%. Solera Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2015 was 315.13%.

Solera Holdings Operating Income Historical Data

The historical data trend for Solera Holdings'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.

Solera Holdings Operating Income Chart

Solera Holdings Annual Data

Trend

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Operating Income

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193.55

219.36

207.21

206.64

209.42

Solera Holdings Quarterly Data
	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15
Operating Income	Get a 7-Day Free Trial															69.82	43.48	56.04	29.49	70.10

Solera Holdings 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. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $199 Mil.

Solera Holdings (NYSE:SLH) Operating Income Explanation

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

Solera Holdings's annualized ROC % for the quarter that ended in Dec. 2015 is calculated as:

	ROC % (Q: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2015 )	+	Invested Capital (Q: Dec. 2015 ))	/ count )
=	280.384 * ( 1 - -125.93% )	/	( (3023.111	+	2999.534)	/ 2 )
=	633.4715712	/	3011.3225
=	21.04 %

where

	Invested Capital		(Q: Sep. 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	))
=	3754.671	-	353.16	-	( 494.88	-	max(0, 366.945	-	745.345	+	494.88	))
=	3023.111

	Invested Capital		(Q: Dec. 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	))
=	3712.622	-	282.461	-	( 470.522	-	max(0, 288.141	-	718.768	+	470.522	))
=	2999.534

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

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

Solera Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2015 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2015 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2015		Q: Dec. 2015
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	282.676	/	( ( (88.279 + max(-145.598, 0))	+	(91.122 + max(-62.089, 0)) )	/	2 )
=	282.676	/	( ( 88.279	+	91.122 )	/	2 )
=	282.676	/	89.7005
=	315.13 %

where Working Capital is:

	Working Capital		(Q: Sep. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(160.463	+	0	+	60.884)	-	(353.16	+	13.785	+	-5.6843418860808E-14)
=	-145.598

	Working Capital		(Q: Dec. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(162.454	+	0	+	63.598)	-	(282.461	+	5.68	+	0)
=	-62.089

When net working capital is negative, 0 is used.

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

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

Solera Holdings's Operating Margin % for the quarter that ended in Dec. 2015 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2015 )	/	Revenue (Q: Dec. 2015 )
	=	70.096	/	308.045
	=	22.76 %

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.

Solera Holdings Operating Income Related Terms

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

Solera Holdings (Solera Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Solera Holdings Inc (NYSE:SLH) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.solerainc.com

Solera Holdings Inc was incorporated on February 1, 2005 in Delaware. The Company is a provider of software and services to the automobile insurance claims processing industry. It also provides products and services that complement or leverage the insurance claims processing software and services. These core extensions include products and services for used vehicle validation, electronic titling, property claims management, fraud detection, salvage yard management, disposition of salvage vehicles, subrogation, and data and analytics used by insurers in the re-underwriting of their insured drivers. Its insurance claims processing customers include insurance companies, collision repair facilities, assessors and automotive recyclers. The Company operates in more than 65 countries across six continents. Its sales and marketing personnel identify and target specific sales opportunities and manage customer relationships. The Company is subject to government regulation and, from time to time, companies in similar lines of business to it are subject to adverse publicity concerning the use of such data.

Executives

Patrick D Campbell	director	MINNESOTA MINING & MANUFACTURING CO, 3M CENTER, ST. PAUL IL 55133
Thomas C Wajnert	director	401 NORTH MAIN STREET, WINSTON SALEM NC 27102
Thomas A Dattilo	director	COOPER TIRE & RUBBER COMPANY, 701 LIMA AVENUE, FINDLAY OH 45840
Arthur F Kingsbury	director	C/O CANOO INC., 19951 MARINER AVENUE, TORRANCE CA 90503
Michael E Lehman	director
Stuart J Yarbrough	director	303 PERIMETER CENTER NORTH, SUITE 600, ATLANTA GA 30346
Abilio Jose Gonzalez	officer: Snr. Vice President, Global HR	2419 277TH AVENUE SE, FALL CITY WA 98024
Jerrell Shelton	director	C/O NETRATINGS INC, 120 WEST 45TH STREET 35TH FLOOR, NEW YORK NY 10036
John Joseph Giamatteo	officer: Chief Operating Officer
Dudley W Mendenhall	officer: CFO	5818 EL CAMINO REAL, CARLSBAD CA 92008
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Gtcr Co Invest Ii Lp	10 percent owner	C/O GTCR GOLDER RAUNER LLC, SEARS TOWER #6100, CHICAGO IL 60606-6402
Gtcr Partners Viii L P	10 percent owner
Gtcr Golder Rauner Ii Llc	10 percent owner