Ventura Cannabis and Wellness (Ventura Cannabis and Wellness) Operating Income : $-0.80 Mil (TTM As of May. 2020)

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What is Ventura Cannabis and Wellness Operating Income?

Ventura Cannabis and Wellness's Operating Income for the three months ended in May. 2020 was $-0.12 Mil. Its Operating Income for the trailing twelve months (TTM) ended in May. 2020 was $-0.80 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ventura Cannabis and Wellness's Operating Income for the three months ended in May. 2020 was $-0.12 Mil. Ventura Cannabis and Wellness's Revenue for the three months ended in May. 2020 was $0.91 Mil. Therefore, Ventura Cannabis and Wellness's Operating Margin % for the quarter that ended in May. 2020 was -12.93%.

Ventura Cannabis and Wellness'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. Ventura Cannabis and Wellness's annualized ROC % for the quarter that ended in May. 2020 was -6.43%. Ventura Cannabis and Wellness's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2020 was -35.93%.

Ventura Cannabis and Wellness Operating Income Historical Data

The historical data trend for Ventura Cannabis and Wellness'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.

Ventura Cannabis and Wellness Operating Income Chart

Ventura Cannabis and Wellness Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Nov14

Nov15

Feb17

Feb18

Feb19

Feb20

Operating Income

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-0.43

-5.12

-0.15

-2.06

-0.96

Ventura Cannabis and Wellness Quarterly Data
	May15	Aug15	Nov15	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20
Operating Income	Get a 7-Day Free Trial															-0.40	-0.45	-0.73	0.50	-0.12

Ventura Cannabis and Wellness 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 May. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.80 Mil.

Ventura Cannabis and Wellness (OTCPK:CVHIF) Operating Income Explanation

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

Ventura Cannabis and Wellness's annualized ROC % for the quarter that ended in May. 2020 is calculated as:

	ROC % (Q: May. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2020 )	+	Invested Capital (Q: May. 2020 ))	/ count )
=	-0.468 * ( 1 - 0% )	/	( (7.26	+	7.297)	/ 2 )
=	-0.468	/	7.2785
=	-6.43 %

where

	Invested Capital		(Q: Feb. 2020 )
=	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	))
=	12.153	-	1.906	-	( 2.987	-	max(0, 2.683	-	6.414	+	2.987	))
=	7.26

	Invested Capital		(Q: May. 2020 )
=	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	))
=	10.43	-	1.16	-	( 1.973	-	max(0, 1.9	-	5.094	+	1.973	))
=	7.297

Note: The Operating Income data used here is four times the quarterly (May. 2020) data.

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

Ventura Cannabis and Wellness's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2020 is calculated as:

	ROC (Joel Greenblatt) %		(Q: May. 2020 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Feb. 2020		Q: May. 2020
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-2.228	/	( ( (4.625 + max(1.522, 0))	+	(4.294 + max(1.96, 0)) )	/	2 )
=	-2.228	/	( ( 6.147	+	6.254 )	/	2 )
=	-2.228	/	6.2005
=	-35.93 %

where Working Capital is:

	Working Capital		(Q: Feb. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2.855	+	0.103	+	0.469)	-	(1.906	+	0	+	-0.0010000000000003)
=	1.522

	Working Capital		(Q: May. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2.67	+	0.089	+	0.362)	-	(1.16	+	0	+	0.00099999999999989)
=	1.96

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (May. 2020) EBIT data.

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

Ventura Cannabis and Wellness's Operating Margin % for the quarter that ended in May. 2020 is calculated as:

Operating Margin %	=	Operating Income (Q: May. 2020 )	/	Revenue (Q: May. 2020 )
	=	-0.117	/	0.905
	=	-12.93 %

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.

Ventura Cannabis and Wellness Operating Income Related Terms

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Ventura Cannabis and Wellness (Ventura Cannabis and Wellness) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Ventura Cannabis and Wellness Corp (OTCPK:CVHIF) » Definitions » Operating Income

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Address

800 W. 6th St, Suite 1415, Los Angeles, CA, USA, 90017

Website

http://www.venturacanna.com

Ventura Cannabis and Wellness Corp is a vertically integrated, California-based products cannabis company. The company is currently building out its distribution channel through revenue-sharing agreements with owner-operator of cannabis dispensaries to ensure it's products get premium shelf space. The Company plans to target four segments in the U.S. cannabis and CBD market with products suited to their needs: senior citizens, upwardly mobile middle-aged female professionals, upwardly mobile middle-aged male professionals and individuals suffering from addiction. These segments desire discrete and well-designed products as well as the accurate dosage of THC.