CardioGenics Holdings (CardioGenics Holdings) Operating Income : $-0.77 Mil (TTM As of Jan. 2016)

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What is CardioGenics Holdings Operating Income?

CardioGenics Holdings's Operating Income for the three months ended in Jan. 2016 was $-0.20 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2016 was $-0.77 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. CardioGenics Holdings's Operating Income for the three months ended in Jan. 2016 was $-0.20 Mil. CardioGenics Holdings's Revenue for the three months ended in Jan. 2016 was $0.00 Mil. Therefore, CardioGenics Holdings's Operating Margin % for the quarter that ended in Jan. 2016 was %.

CardioGenics Holdings'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. CardioGenics Holdings's annualized ROC % for the quarter that ended in Jan. 2016 was -75.32%. CardioGenics Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2016 was -2,330.43%.

CardioGenics Holdings Operating Income Historical Data

The historical data trend for CardioGenics Holdings'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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CardioGenics Holdings Operating Income Chart

CardioGenics Holdings Annual Data

Trend

Jul06

Jul07

Jul08

Oct09

Oct10

Oct11

Oct12

Oct13

Oct14

Oct15

Operating Income

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-5.60

-1.29

-2.33

-0.97

-0.77

CardioGenics Holdings Quarterly Data
	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16
Operating Income	Get a 7-Day Free Trial															-0.21	-0.16	-0.10	-0.31	-0.20

CardioGenics Holdings 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 Jan. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.77 Mil.

CardioGenics Holdings (OTCPK:CGNH) Operating Income Explanation

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

CardioGenics Holdings's annualized ROC % for the quarter that ended in Jan. 2016 is calculated as:

	ROC % (Q: Jan. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2015 )	+	Invested Capital (Q: Jan. 2016 ))	/ count )
=	-0.804 * ( 1 - 0% )	/	( (1.084	+	1.051)	/ 2 )
=	-0.804	/	1.0675
=	-75.32 %

where

	Invested Capital		(Q: Oct. 2015 )
=	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	))
=	0.232	-	0.891	-	( 0.05	-	max(0, 1.795	-	0.052	+	0.05	))
=	1.084

	Invested Capital		(Q: Jan. 2016 )
=	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	))
=	0.558	-	1.467	-	( 0	-	max(0, 2.345	-	0.385	+	0	))
=	1.051

Note: The Operating Income data used here is four times the quarterly (Jan. 2016) data.

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

CardioGenics Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2016 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jan. 2016 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Oct. 2015		Q: Jan. 2016
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-0.804	/	( ( (0.035 + max(-1.722, 0))	+	(0.034 + max(-1.587, 0)) )	/	2 )
=	-0.804	/	( ( 0.035	+	0.034 )	/	2 )
=	-0.804	/	0.0345
=	-2,330.43 %

where Working Capital is:

	Working Capital		(Q: Oct. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	-6.9388939039072E-18)	-	(0.891	+	0.487	+	0.344)
=	-1.722

	Working Capital		(Q: Jan. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.38	+	0	+	0)	-	(1.467	+	0	+	0.5)
=	-1.587

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jan. 2016) EBIT data.

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

CardioGenics Holdings's Operating Margin % for the quarter that ended in Jan. 2016 is calculated as:

Operating Margin %	=	Operating Income (Q: Jan. 2016 )	/	Revenue (Q: Jan. 2016 )
	=	-0.201	/	0
	=	%

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.

CardioGenics Holdings Operating Income Related Terms

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CardioGenics Holdings (CardioGenics Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » CardioGenics Holdings Inc (OTCPK:CGNH) » Definitions » Operating Income

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Traded in Other Exchanges

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Address

6295 Northam Drive, Unit 8, Mississauga, ON, CAN, L4V 1W8

Website

http://www.cardiogenics.com

CardioGenics Holdings Inc is a biotechnology company. It is engaged in the development and commercialization of diagnostic test products for the In-Vitro Diagnostics (IVD) testing market. The company's objective is to create, develop and commercialize superior, innovative, cost-effective and patent-protected products for the IVD based on proprietary technologies. Its products include QL Care Analyzer, Immunoassay Tests, and Paramagnetic Beads. The business activity is primarily carried out through the region of Canada.

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