Speedway Motorsports (Speedway Motorsports) Operating Income : $62.6 Mil (TTM As of Jun. 2019)

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What is Speedway Motorsports Operating Income?

Speedway Motorsports's Operating Income for the three months ended in Jun. 2019 was $26.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2019 was $62.6 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Speedway Motorsports's Operating Income for the three months ended in Jun. 2019 was $26.2 Mil. Speedway Motorsports's Revenue for the three months ended in Jun. 2019 was $141.9 Mil. Therefore, Speedway Motorsports's Operating Margin % for the quarter that ended in Jun. 2019 was 18.48%.

Speedway Motorsports'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. Speedway Motorsports's annualized ROC % for the quarter that ended in Jun. 2019 was 5.74%. Speedway Motorsports's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2019 was 11.38%.

Speedway Motorsports Operating Income Historical Data

The historical data trend for Speedway Motorsports'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.

Speedway Motorsports Operating Income Chart

Speedway Motorsports Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Operating Income

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60.16

78.68

73.35

59.07

62.92

Speedway Motorsports Quarterly Data
	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19
Operating Income	Get a 7-Day Free Trial															40.04	34.99	-12.88	14.31	26.21

Speedway Motorsports 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 Jun. 2019 adds up the quarterly data reported by the company within the most recent 12 months, which was $62.6 Mil.

Speedway Motorsports (NYSE:TRK) Operating Income Explanation

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

Speedway Motorsports's annualized ROC % for the quarter that ended in Jun. 2019 is calculated as:

	ROC % (Q: Jun. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2019 )	+	Invested Capital (Q: Jun. 2019 ))	/ count )
=	104.856 * ( 1 - 25.77% )	/	( (1363.087	+	1350.957)	/ 2 )
=	77.8346088	/	1357.022
=	5.74 %

where

	Invested Capital		(Q: Mar. 2019 )
=	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	))
=	1458.287	-	37.405	-	( 68.619	-	max(0, 99.558	-	157.353	+	68.619	))
=	1363.087

	Invested Capital		(Q: Jun. 2019 )
=	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	))
=	1468.823	-	41.115	-	( 104.71	-	max(0, 99.351	-	176.102	+	104.71	))
=	1350.957

Note: The Operating Income data used here is four times the quarterly (Jun. 2019) data.

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

Speedway Motorsports's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2019 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2019 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2019		Q: Jun. 2019
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	105.332	/	( ( (929.813 + max(-10.652, 0))	+	(921.658 + max(-27.787, 0)) )	/	2 )
=	105.332	/	( ( 929.813	+	921.658 )	/	2 )
=	105.332	/	925.7355
=	11.38 %

where Working Capital is:

	Working Capital		(Q: Mar. 2019 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(56.868	+	9.735	+	22.131)	-	(37.405	+	61.981	+	1.4210854715202E-14)
=	-10.652

	Working Capital		(Q: Jun. 2019 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(39.181	+	9.87	+	22.341)	-	(41.115	+	58.064	+	0)
=	-27.787

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2019) EBIT data.

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

Speedway Motorsports's Operating Margin % for the quarter that ended in Jun. 2019 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2019 )	/	Revenue (Q: Jun. 2019 )
	=	26.214	/	141.868
	=	18.48 %

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.

Speedway Motorsports Operating Income Related Terms

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Speedway Motorsports (Speedway Motorsports) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Speedway Motorsports Inc (NYSE:TRK) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

5555 Concord Parkway South, Concord, NC, USA, 28027

Website

http://www.speedwaymotorsports.com

Speedway Motorsports Inc act as a promoter, marketer and sponsor of motorsports activities in the United States. The company also provides souvenir merchandising, including screen-printing and embroidery, as well as food, beverage, and hospitality catering services; and radio programming, production, and distribution services. It operates through motorsports event related segments. The motorsports event related segment includes admissions, event related, NASCAR broadcasting and event motorsports merchandising activities. Speedway generates most of the income from NASCAR broadcasting which include rights fees obtained for domestic television broadcasts of NASCAR-sanctioned events.

Executives

James P Holden	director	1221 AVENUE OF THE AMERICAS, NEW YORK NY 10020
Mark M Gambill	director	5555 CONCORD PARKWAY SOUTH, CONCORD NC 28027
William R Brooks	director, officer: Chief Financial Officer	5401 E INDEPENDENCE BLVD, CHARLOTTE NC 28212
Marcus G Smith	director, 10 percent owner, officer: Chief Executive Officer	5555 CONCORD PARKWAY SOUTH, CONCORD NC 28027
O Bruton Smith	director, 10 percent owner, officer: Executive Chairman	5401 E INDEPENDENCE BLVD, CHARLOTTE NC 28212
Bryan Scott Smith	director, 10 percent owner	5401 E INDEPENDENCE BLVD, CHARLOTTE NC 28212
Byrd Bernard Clinton Jr	director	4401 COLWICK ROAD, CHARLOTTE NC 28211
David Bruton Smith	10 percent owner	C/O SONIC AUTOMOTIVE, INC., 6415 IDLEWILD ROAD, SUITE 109, CHARLOTTE NC 28212
Robert L Rewey	director	401 LONE PINE COURT, BLOOMFIELD HILLS MI 48304
William P Benton	director	PARKLANE TOWERS WEST, 3 PARKLANE BLVD STE 1610, DEARBORN MI 48126