Mighty Kingdom (ASX:MKL) Operating Income : A$-9.23 Mil (TTM As of Jun. 2024)

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What is Mighty Kingdom Operating Income?

Mighty Kingdom's Operating Income for the six months ended in Jun. 2024 was A$-5.84 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was A$-9.23 Mil.

Warning Sign:

Mighty Kingdom Ltd has never been profitable in the past 3 years. It lost money every year.

Operating Margin % is calculated as Operating Income divided by its Revenue. Mighty Kingdom's Operating Income for the six months ended in Jun. 2024 was A$-5.84 Mil. Mighty Kingdom's Revenue for the six months ended in Jun. 2024 was A$1.37 Mil. Therefore, Mighty Kingdom's Operating Margin % for the quarter that ended in Jun. 2024 was -425.33%.

Mighty Kingdom'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. Mighty Kingdom's annualized ROC % for the quarter that ended in Jun. 2024 was -836.95%. Mighty Kingdom's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was -1,672.38%.

Mighty Kingdom Operating Income Historical Data

The historical data trend for Mighty Kingdom'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.

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Mighty Kingdom Operating Income Chart

Mighty Kingdom Annual Data

Trend

Jun21

Jun22

Jun23

Jun24

Operating Income

-9.93

-13.53

-11.74

-9.23

Mighty Kingdom Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Operating Income	Get a 7-Day Free Trial			-7.06	-7.86	-3.88	-3.38	-5.84

Mighty Kingdom 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. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$-9.23 Mil.

Mighty Kingdom (ASX:MKL) Operating Income Explanation

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

Mighty Kingdom's annualized ROC % for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-11.688 * ( 1 - 0% )	/	( (1.943	+	0.85)	/ 2 )
=	-11.688	/	1.3965
=	-836.95 %

where

	Invested Capital		(Q: Dec. 2023 )
=	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	))
=	4.179	-	2.118	-	( 0.568	-	max(0, 3.606	-	3.724	+	0.568	))
=	1.943

	Invested Capital		(Q: Jun. 2024 )
=	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	))
=	6.56	-	2.722	-	( 3.367	-	max(0, 3.432	-	6.42	+	3.367	))
=	0.85

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

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

Mighty Kingdom's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Jun. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-9.658	/	( ( (0.455 + max(0.56, 0))	+	(0.14 + max(-2.787, 0)) )	/	2 )
=	-9.658	/	( ( 1.015	+	0.14 )	/	2 )
=	-9.658	/	0.5775
=	-1,672.38 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2.956	+	0	+	0.531)	-	(2.118	+	0	+	0.809)
=	0.56

	Working Capital		(Q: Jun. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.131	+	0	+	0.514)	-	(2.722	+	0	+	0.71)
=	-2.787

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT data.

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

Mighty Kingdom's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	-5.844	/	1.374
	=	-425.33 %

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.

Mighty Kingdom Operating Income Related Terms

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Mighty Kingdom Business Description

Industry

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Traded in Other Exchanges

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Address

169 Fullarton Road, Level 1, Dulwich, SA, AUS, 5065

Website

https://www.mightykingdom.com

Mighty Kingdom Ltd is engaged in the development of games. The Group's principal activities are developing a broad portfolio of video games for console, PC, and mobile platforms. It has worked with companies including Disney, LEGO, Australian Red Cross, Funcom, Rogue, and Snapchat. Some of the games developed by the company include Sugar Slam, Ava's Manor, Wild Life, Heart Lake Rush, Danger Days, and Shopkins. It has its business activities in one area which is video games development. Mobile games and apps developed and/or published by the Group are made available for customers on different app stores, including Apple's App Store, Google's Google Play, and Valve's Steam Store.