APTY (APT Systems) Operating Income: $-0.85 Mil (TTM As of Oct. 2018)

What is APT Systems Operating Income?

APT Systems APTY Operating Income is $-0.85 Mil as of Oct. 2018.

APT Systems's Operating Income for the three months ended in Oct. 2018 was $-0.23 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2018 was $-0.85 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. APT Systems's Operating Income for the three months ended in Oct. 2018 was $-0.23 Mil. APT Systems's Revenue for the three months ended in Oct. 2018 was $0.00 Mil. Therefore, APT Systems's Operating Margin % for the quarter that ended in Oct. 2018 was -22,900.00%.

APT Systems'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. APT Systems's annualized ROC % for the quarter that ended in Oct. 2018 was -68.87%. APT Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2018 was %.

APT Systems (OTCPK:APTY) Operating Income Explanation

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

APT Systems's annualized ROC % for the quarter that ended in Oct. 2018 is calculated as:

	ROC % (Q: Oct. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2018 )	+	Invested Capital (Q: Oct. 2018 ))	/ count )
=	-0.916 * ( 1 - 0% )	/	( (1.402	+	1.258)	/ 2 )
=	-0.916	/	1.33
=	-68.87 %

where

	Invested Capital		(Q: Jul. 2018 )
=	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	))
=	0.191	-	0.424	-	( 0.026	-	max(0, 1.686	-	0.051	+	0.026	))
=	1.402

	Invested Capital		(Q: Oct. 2018 )
=	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	))
=	0.217	-	0.498	-	( 0.037	-	max(0, 1.626	-	0.087	+	0.037	))
=	1.258

Note: The Operating Income data used here is four times the quarterly (Oct. 2018) data.

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

APT Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2018 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Oct. 2018 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jul. 2018		Q: Oct. 2018
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-0.84	/	( ( (0 + max(-1.109, 0))	+	(0 + max(-1.049, 0)) )	/	2 )
=	-0.84	/	( ( 0	+	0 )	/	2 )
=	-0.84	/	0
=	%

where Working Capital is:

	Working Capital		(Q: Jul. 2018 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0.025)	-	(0.424	+	0	+	0.71)
=	-1.109

	Working Capital		(Q: Oct. 2018 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0.05)	-	(0.498	+	0	+	0.601)
=	-1.049

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Oct. 2018) EBIT data.

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

APT Systems's Operating Margin % for the quarter that ended in Oct. 2018 is calculated as:

Operating Margin %	=	Operating Income (Q: Oct. 2018 )	/	Revenue (Q: Oct. 2018 )
	=	-0.229	/	0.001
	=	-22,900.00 %

* 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.

APT Systems Operating Income Related Terms

APT Systems Operating Income Historical Data

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The historical data trend for APT Systems's Operating Income can be seen below:

APT Systems Operating Income Chart

APT Systems Annual Data

Trend

Jan12

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

Operating Income

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-0.08

-0.17

-0.18

-0.46

-1.26

APT Systems Quarterly Data
	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18
Operating Income	Get a 7-Day Free Trial															-0.10	-0.14	-0.10	-0.38	-0.23

APT Systems 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 Oct. 2018 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.85 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of $-0.85 Mil mean?

APT Systems (APTY) has a Operating Income of $-0.85 Mil as of Oct. 2018. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on APT Systems and its competitors.

Is APT Systems' Operating Income too high?

APT Systems' current Operating Income is $-0.85 Mil.

How does APT Systems' Operating Income compare to CLIS and AVOI?

APT Systems' Operating Income of $-0.85 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 Operating Income for a Software company?

A good Operating Income depends on the Software 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 APT Systems and its competitors. APT Systems's current Operating Income is $-0.85 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is APT Systems stock overvalued right now?

APT Systems (APTY) has a current Operating Income of $-0.85 Mil. The current Operating Income is $-0.85 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 APT Systems (APTY), the current Operating Income is $-0.85 Mil as of Oct. 2018. 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.

APT Systems Business Description

Industry Technology Software

Comparable Companies TSXV:IVI CLIS XSAT:MENU B BOM:539570 LSE:MOS AVOI BOM:531489 WAR:MGA ISGN WAR:IMG BOM:539843 BOM:534659 KLMK BOM:531525 TSXV:REW WAR:ACR TSXV:NPA TSXV:LOOP ASX:SVT BOM:512279

Address 505 Montgomery Street, 11th Floor, San Francisco, CA, USA, 94111

Website https://www.aptsystemsinc.com

APT Systems Inc operates as a Fintech company to engage in the creation of financial platforms and financial apps, and imagines new visual solutions for charting the financial markets. It is focused on building a financial ecosystem around the Verifundr escrow system, which is a payment distribution platform that can include smart contracts and a subscription trading service that is backed by a true stablecoin named Spera (SPRA). The company is also developing credentials for verifying and reporting on an accredited investor's status.