ACAGF (Arcandor AG) Operating Income: $-236 Mil (TTM As of Sep. 2008)

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What is Arcandor AG Operating Income?

Arcandor AG ACAGF Operating Income is $-236 Mil as of Sep. 2008.

Arcandor AG's Operating Income for the six months ended in Sep. 2008 was $-236 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2008 was $-236 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Arcandor AG's Operating Income for the six months ended in Sep. 2008 was $-236 Mil. Arcandor AG's Revenue for the six months ended in Sep. 2008 was $27,773 Mil. Therefore, Arcandor AG's Operating Margin % for the quarter that ended in Sep. 2008 was -0.85%.

Arcandor AG'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. Arcandor AG's annualized ROC % for the quarter that ended in Sep. 2008 was -1.64%. Arcandor AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2008 was -0.26%.

Arcandor AG  (OTCPK:ACAGF) Operating Income Explanation

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

Arcandor AG's annualized ROC % for the quarter that ended in Sep. 2008 is calculated as:

ROC % (Q: Sep. 2008 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2006 ) + Invested Capital (Q: Sep. 2008 ))/ count )
=-236.456 * ( 1 - 0% )/( (8969.508 + 19879.531)/ 2 )
=-236.456/14424.5195
=-1.64 %

where

Invested Capital(Q: Dec. 2006 )
=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))
=10529.403 - 37.978 - ( 1521.917 - max(0, 37.978 - 5006.398+1521.917))
=8969.508

Invested Capital(Q: Sep. 2008 )
=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))
=20099.175 - 4748.69 - ( 3476.991 - max(0, 11886.674 - 7357.628+3476.991))
=19879.531

Note: The Operating Income data used here is one times the annual (Sep. 2008) data.

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

Arcandor AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2008 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2008 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2006  Q: Sep. 2008
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-10.646/( ( (1434.165 + max(3446.503, 0)) + (3386.085 + max(-8800.723, 0)) )/ 2 )
=-10.646/( ( 4880.668 + 3386.085 )/ 2 )
=-10.646/4133.3765
=-0.26 %

where Working Capital is:

Working Capital(Q: Dec. 2006 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 1641.292 + 1843.189) - (37.978 + 0 + 0)
=3446.503

Working Capital(Q: Sep. 2008 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1026.016 + 1961.106 + 98.829) - (4748.69 + 0 + 7137.984)
=-8800.723

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Sep. 2008) EBIT data.

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

Arcandor AG's Operating Margin % for the quarter that ended in Sep. 2008 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2008 )/Revenue (Q: Sep. 2008 )
=-236.456/27772.581
=-0.85 %

* 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.

Arcandor AG Operating Income Related Terms

Arcandor AG Operating Income Historical Data

* Premium members only.

The historical data trend for Arcandor AG'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.

Arcandor AG Operating Income Chart

Arcandor AG Annual Data
Trend Dec02 Dec03 Dec04 Dec05 Dec06 Sep07 Sep08
Operating Income
Get a 7-Day Free Trial 13,780.18 10,629.68 13,047.94 1,127.09 -236.46

Arcandor AG Semi-Annual Data
Dec02 Dec03 Dec04 Dec05 Dec06 Sep08
Operating Income Get a 7-Day Free Trial 467.31 13,780.18 10,629.68 13,047.94 -236.46

Arcandor AG 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.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Sep. 2008 was $-236 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 Operating Income →
What does a Operating Income of $-236 Mil mean?
Arcandor AG (ACAGF) has a Operating Income of $-236 Mil as of Sep. 2008. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Arcandor AG and its competitors.
Is Arcandor AG's Operating Income too high?
Arcandor AG's current Operating Income is $-236 Mil.
How does Arcandor AG's Operating Income compare to ?
Arcandor AG's Operating Income of $-236 Mil can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Retail - Cyclical company?
A good Operating Income depends on the Retail - Cyclical industry context. However, Operating 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Arcandor AG and its competitors. Arcandor AG's current Operating Income is $-236 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arcandor AG stock overvalued right now?
Arcandor AG (ACAGF) has a current Operating Income of $-236 Mil. The current Operating Income is $-236 Mil. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Arcandor AG (ACAGF), the current Operating Income is $-236 Mil as of Sep. 2008. 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.

Arcandor AG Business Description

Comparable Companies
Address Arcandor AG, Theodor-althoff-strac E 2, Essen, DEU, 45133
Arcandor AG is in insolvency. Arcandor was a German handels and tourism company, with the divisions Karstadt, mail-order operation (Primondo) and Thomas Cook.