Chime Communications (Chime Communications) Operating Income : $16.3 Mil (TTM As of Jun. 2015)

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What is Chime Communications Operating Income?

Chime Communications's Operating Income for the six months ended in Jun. 2015 was $4.4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2015 was $16.3 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Chime Communications's Operating Income for the six months ended in Jun. 2015 was $4.4 Mil. Chime Communications's Revenue for the six months ended in Jun. 2015 was $287.4 Mil. Therefore, Chime Communications's Operating Margin % for the quarter that ended in Jun. 2015 was 1.54%.

Chime Communications'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. Chime Communications's annualized ROC % for the quarter that ended in Jun. 2015 was -1.58%. Chime Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2015 was 60.83%.

Chime Communications Operating Income Historical Data

The historical data trend for Chime Communications'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.

* Premium members only.

Chime Communications Operating Income Chart

Chime Communications Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Operating Income

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34.51

29.08

7.91

0.03

28.65

Chime Communications Semi-Annual Data
	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15
Operating Income	Get a 7-Day Free Trial															1.42	-1.47	18.11	11.90	4.43

Chime Communications 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. 2015 adds up the semi-annually data reported by the company within the most recent 12 months, which was $16.3 Mil.

Chime Communications (OTCPK:CICPF) Operating Income Explanation

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

Chime Communications's annualized ROC % for the quarter that ended in Jun. 2015 is calculated as:

	ROC % (Q: Jun. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2014 )	+	Invested Capital (Q: Jun. 2015 ))	/ count )
=	8.85 * ( 1 - 181.4% )	/	( (489.476	+	425.275)	/ 2 )
=	-7.2039	/	457.3755
=	-1.58 %

where

	Invested Capital		(Q: Dec. 2014 )
=	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	))
=	601.263	-	84.712	-	( 31.728	-	max(0, 159.617	-	186.692	+	31.728	))
=	489.476

	Invested Capital		(Q: Jun. 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	))
=	624.545	-	173.939	-	( 36.71	-	max(0, 198.114	-	223.445	+	36.71	))
=	425.275

Note: The Operating Income data used here is two times the semi-annual (Jun. 2015) data.

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

Chime Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2015 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2015 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2014		Q: Jun. 2015
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	9.53	/	( ( (16.078 + max(-4.371, 0))	+	(15.257 + max(-11.147, 0)) )	/	2 )
=	9.53	/	( ( 16.078	+	15.257 )	/	2 )
=	9.53	/	15.6675
=	60.83 %

where Working Capital is:

	Working Capital		(Q: Dec. 2014 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(98.892	+	9.728	+	46.344)	-	(84.712	+	0	+	74.623)
=	-4.371

	Working Capital		(Q: Jun. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(172.749	+	12.171	+	1.815)	-	(173.939	+	0	+	23.943)
=	-11.147

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2015) EBIT data.

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

Chime Communications's Operating Margin % for the quarter that ended in Jun. 2015 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2015 )	/	Revenue (Q: Jun. 2015 )
	=	4.425	/	287.361
	=	1.54 %

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.

Chime Communications Operating Income Related Terms

Thank you for viewing the detailed overview of Chime Communications's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Chime Communications (Chime Communications) Business Description

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http://www.chimeplc.com

Chime Communications PLC was incorporated in the United Kingdom on January 29, 1986. The Company provides advertising, sports marketing, market research, direct marketing, design and event management consultancy. Its business segments are Sport & Entertainment, Advertising and Marketing Services (AMS), Healthcare, and Insight & Engagement.Â In sport & entertainment segment CSM Sport & Entertainment works with brands, rights holders, governing bodies, governments and athletes across the globe, CSM specialises in strategic consultancy, rights sales, sponsorship activation, hospitality, branding and wayfinding, athlete management and communications across sporting events. The advertising and marketing services division includes the VCCP Partnership and the Chime Specialist Group. VCCP operates in advertising and marketing services, direct marketing, digital communication, search relations, point of sale, sales promotion, data consultancy and technical design, multimedia content, youth marketing and experiential, marketing consulting, retail and shopper marketing and specialist media planning and buying. The Specialist Group includes agencies operating in niche markets; corporate responsibility and sustainability consultancy; for technology brands; providing customer reference and advocacy and; in professional and financial services. The insight and engagement division brings together researchers, technologists and insight specialists who deliver to clients, in real time, actionable solutions. The division has particular expertise in delivering clients in FMCG, financial services, utilities and retail with experience performance improvement plans, mystery shopping programmes and advertising and brand tracking. The Insight & Engagement division includes specialist brands such as Watermelon - a specialist digital agency, Cherry Picked - a specialist recruitment agency, Facts International - a specialist fieldwork agency and full service agencies Opinion Leader and CIE. In healthcare segment OPEN Health is a healthcare communications and market access group. It comprises ten different specialist businesses that bring a breadth of expertise focused principally on pharma, health device and diagnostic clients. OPEN Health's companies cover aspects of the communications mix including advertising, PR, medical communications, market access consulting, real world data collection, market research and patient engagement programmes.

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