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Zynga (ZNGA) Operating Income : $143 Mil (TTM As of Mar. 2022)


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What is Zynga Operating Income?

Zynga's Operating Income for the three months ended in Mar. 2022 was $15 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2022 was $143 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Zynga's Operating Income for the three months ended in Mar. 2022 was $15 Mil. Zynga's Revenue for the three months ended in Mar. 2022 was $691 Mil. Therefore, Zynga's Operating Margin % for the quarter that ended in Mar. 2022 was 2.17%.

Zynga'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. Zynga's annualized ROC % for the quarter that ended in Mar. 2022 was 9.18%. Zynga's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2022 was 0.67%.


Zynga Operating Income Historical Data

The historical data trend for Zynga'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.

Zynga Operating Income Chart

Zynga Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.72 6.80 -272.20 -370.20 122.60

Zynga Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 -5.50 74.80 54.50 -1.20 15.00

Zynga 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 Mar. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $143 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.


Zynga  (NAS:ZNGA) Operating Income Explanation

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

Zynga's annualized ROC % for the quarter that ended in Mar. 2022 is calculated as:

ROC % (Q: Mar. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2021 ) + Invested Capital (Q: Mar. 2022 ))/ count )
=60 * ( 1 - -744.83% )/( (5589.8 + 5452.8)/ 2 )
=506.898/5521.3
=9.18 %

where

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

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

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

ROC (Joel Greenblatt) %(Q: Mar. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2021  Q: Mar. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=0.8/( ( (116.7 + max(-1050.7, 0)) + (120.7 + max(-679.5, 0)) )/ 2 )
=0.8/( ( 116.7 + 120.7 )/ 2 )
=0.8/118.7
=0.67 %

where Working Capital is:

Working Capital(Q: Dec. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(242.5 + 0 + 253.1) - (683.9 + 748.1 + 114.3)
=-1050.7

Working Capital(Q: Mar. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(233.4 + 0 + 196.8) - (268.1 + 746.4 + 95.2)
=-679.5

When net working capital is negative, 0 is used.

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

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

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

Operating Margin %=Operating Income (Q: Mar. 2022 )/Revenue (Q: Mar. 2022 )
=15/691.2
=2.17 %

* 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.


Zynga Operating Income Related Terms

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


Zynga (ZNGA) Business Description

Traded in Other Exchanges
N/A
Address
699 Eighth Street, San Francisco, CA, USA, 94103
Zynga Inc is a company that develops, markets, and operates social games as live services played on mobile platforms, such as iOS and Android, and social networking sites, such as Facebook. Zynga generates revenue through mobile game downloads, in-games sales of virtual goods, and advertising services. Zynga's revenue is divided between Online game and Advertising and other, where Online game accounts for the vast majority of total revenue. The firm's top three games account for the majority of its online game revenue. The company invests in several game categories, such as Social Casino, including Zynga Poker; Casual, including Words With Friends; Action Strategy, including Empires & Allies; and Invest Express, including Farmville.
Executives
Ellen F Siminoff director 555 ELLIS STREET, MOUNTAIN VIEW CA 94043
Jeffrey Miles Ryan officer: Chief People Officer C/O ZYNGA INC. 699 8TH STREET SAN FRANCISCO CA 94103
James Gerard Griffin officer: Chief Financial Officer C/O ZYNGA INC. 699 8TH STREET SAN FRANCISCO CA 94103
Matthew S Bromberg officer: Chief Operating Officer C/O ZYNGA INC., 699 8TH STREET, SAN FRANCISCO CA 94103
Amy Marie Rawlings officer: Chief Accounting Officer C/O ZYNGA INC., 699 8TH STREET, SAN FRANCISCO CA 94103
Mark J Pincus director, 10 percent owner, officer: CEO, Chief Product Officer C/O ZYNGA INC., 699 EIGHTH STREET, SAN FRANCISCO CA 94103
Phuong Y. Phillips officer: Chief Legal Officer C/O ZYNGA INC. 699 8TH STREET SAN FRANCISCO CA 94103
Bernard Jin Kim officer: President of Publishing C/O MATCH GROUP, INC., 8750 N CENTRAL EXPRESSWAY, SUITE 1400, DALLAS TX 75231
Regina E Dugan director VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304
Frank D Gibeau director 699 8TH STREET, C/O ZYNGA INC., SAN FRANCISCO CA 94103
Jeffrey Buckley officer: Chief Accounting Officer C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202
Noel Bertram Watson director 400 1ST AVENUE, C/O TRIPADVISOR, INC., NEEDHAM MA 02494
William B Gordon director, 10 percent owner
Devang Shah officer: General Counsel, Sec. and VP 699 8TH STREET, SAN FRANCISCO CA 94103
Carol Mills Baldwin director 600 TELEPHONE AVENUE, MS#65, ANCHORAGE AK 99503

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