Allocate Software (LSE:ALLA) Net Income: £3.44 Mil (TTM As of May. 2014)

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What is Allocate Software Net Income?

Allocate Software LSE:ALLA Net Income is £3.44 Mil as of May. 2014. The stock has 1 warning sign investors should review.

Net Income is the net profit that a company earns after deducting all costs and losses including cost of goods, SGA, DDA, interest expenses, non-recurring items and tax. Allocate Software's Net Income for the six months ended in May. 2014 was £4.40 Mil. Its Net Income for the trailing twelve months (TTM) ended in May. 2014 was £3.44 Mil.

Net Income is linked to the most popular Earnings per Share (Diluted) number. Allocate Software's Earnings per Share (Diluted) for the six months ended in May. 2014 was £0.06.

Allocate Software  (LSE:ALLA) Net Income Explanation

Net Income is the most widely cited number in reporting a company's profitability. It is linked to the most popular earnings-per-share (EPS) number through:

Allocate Software's Earnings per Share (Diluted) (EPS) for the quarter that ended in May. 2014 is calculated as

Earnings per Share (Diluted) (Q: May. 2014 )=(Net Income-Preferred Dividends)/Shares Outstanding (Diluted Average)
=(4.399-0)/69.874
=0.06

* 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.

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

EPS is most useful for companies that have:

A predictable business
Consistent accounting methods
And few restructurings

The dividend paid to preferred stocks needs to be subtracted from the total net income in the calculation of EPS because common stock holders are not entitled to that part of the net income.

Be Aware

Warren Buffett looks for consistency and upward long term trend. Because of share repurchase it is possible for net earnings trend to differ from EPS trend. He preferred Net Income over EPS. The companies with durable competitive advantage companies report higher % net earnings to total revenues.

Important: If a company is showing net earnings history greater than 20% on total revenues, it is probably benefiting from a long term competitive advantage.

If net earnings is less than 10%, likely to be in a highly competitive business.

Allocate Software Net Income Related Terms

Allocate Software Net Income Historical Data

* Premium members only.

The historical data trend for Allocate Software's Net 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.

Allocate Software Net Income Chart

Allocate Software Annual Data
Trend May05 May06 May07 May08 May09 May10 May11 May12 May13 May14
Net Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.25 0.80 -3.40 -1.43 3.44

Allocate Software Semi-Annual Data
Nov04 May05 Nov05 May06 Nov06 May07 Nov07 May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14
Net 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 1.97 -2.21 0.78 -0.96 4.40

Allocate Software Net Income Calculation

Net Income is the net profit that a company earns after deducting all costs and losses including cost of goods, SGA, DDA, interest expenses, non-recurring items and tax.

Net Income
= Revenue - Cost of Goods Sold - Selling, General, & Admin. Expense - Research & Development - Depreciation, Depletion and Amortization - Interest Expense - Non Operating Income (NRI) - Tax Expense + Others
= EBITDA - Depreciation, Depletion and Amortization - Interest Expense - Non Operating Income (NRI) - Tax Expense + Others
= Operating Income - Interest Expense - Non Operating Income (NRI) - Tax Expense + Others
= Pre-Tax Income - Tax Expense + Others

Allocate Software's Net Income for the fiscal year that ended in May. 2014 is calculated as

Net Income(A: May. 2014 )
= Pre-Tax Income + Tax Provision + Net Income (Discontinued Operations) + Others
=2.893+0.547+0+0
=3.44

Allocate Software's Net Income for the quarter that ended in May. 2014 is calculated as

Net Income(Q: May. 2014 )
= Pre-Tax Income + Tax Provision + Net Income (Discontinued Operations) + Others
=4.846+-0.447+0+0
=4.40

Net Income for the trailing twelve months (TTM) ended in May. 2014 adds up the semi-annually data reported by the company within the most recent 12 months, which was £3.44 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.

Frequently Asked Questions Learn more about Net Income →
What does a Net Income of £3.44 Mil mean?
Allocate Software (LSE:ALLA) has a Net Income of £3.44 Mil as of May. 2014. Net Income is the total earnings after all operating expenses, interest and taxes. View historical data on Allocate Software and its competitors.
Is Allocate Software's Net Income too high?
Allocate Software's current Net Income is £3.44 Mil.
How does Allocate Software's Net Income compare to SREV and ASUR?
Allocate Software's Net Income of £3.44 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Income for a Software company?
A good Net Income depends on the Software industry context. However, Net Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Income mean?
A high Net Income can signal that a stock is expensive relative to its fundamentals. Net Income is the total earnings after all operating expenses, interest and taxes. View historical data on Allocate Software and its competitors. Allocate Software's current Net Income is £3.44 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allocate Software stock overvalued right now?
Allocate Software (LSE:ALLA) has a current Net Income of £3.44 Mil. The current Net Income is £3.44 Mil. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Income calculated?
Net Income is calculated from a company's financial statements. For Allocate Software (LSE:ALLA), the current Net Income is £3.44 Mil as of May. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Allocate Software Business Description

Allocate Software PLC is engaged in the development, sale and support of workforce management solutions, and the provision of related IT services to major healthcare, defence, government and commercial customers. The business of the company is focused principally on the Healthcare market in addition to Defence. Its segments are Licence, Subscriptions, Support, and Services. Licence and Subscriptions segments represent the sale of non-cancellable software licence agreements and subscriptions associated with that software. Support and Services segments represent the provision of installation, consulting, training and product support. It operates in UK, Europe, USA and Australia.