CVST (Covista Communications) Operating Income: $-2.18 Mil (TTM As of Apr. 2005)


What is Covista Communications Operating Income?

Covista Communications CVST -99.67% Operating Income is $-2.18 Mil as of Apr. 2005.

Covista Communications's Operating Income for the three months ended in Apr. 2005 was $0.20 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2005 was $-2.18 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Covista Communications's Operating Income for the three months ended in Apr. 2005 was $0.20 Mil. Covista Communications's Revenue for the three months ended in Apr. 2005 was $11.25 Mil. Therefore, Covista Communications's Operating Margin % for the quarter that ended in Apr. 2005 was 1.81%.

Covista 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. Covista Communications's annualized ROC % for the quarter that ended in Apr. 2005 was 6.61%. Covista Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2005 was 13.77%.

Covista Communications  (OTCPK:CVST) Operating Income Explanation

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

Covista Communications's annualized ROC % for the quarter that ended in Apr. 2005 is calculated as:

ROC % (Q: Apr. 2005 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2005 ) + Invested Capital (Q: Apr. 2005 ))/ count )
=0.816 * ( 1 - 0% )/( (14.242 + 10.445)/ 2 )
=0.816/12.3435
=6.61 %

where

Invested Capital(Q: Jan. 2005 )
=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))
=27.231 - 8.452 - ( 8.606 - max(0, 13.717 - 18.254+8.606))
=14.242

Invested Capital(Q: Apr. 2005 )
=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))
=24.311 - 8.919 - ( 6.509 - max(0, 10.83 - 15.777+6.509))
=10.445

Note: The Operating Income data used here is four times the quarterly (Apr. 2005) data.

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

Covista Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2005 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2005 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2005  Q: Apr. 2005
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=0.816/( ( (6.082 + max(-3.496, 0)) + (5.768 + max(-1.304, 0)) )/ 2 )
=0.816/( ( 6.082 + 5.768 )/ 2 )
=0.816/5.925
=13.77 %

where Working Capital is:

Working Capital(Q: Jan. 2005 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(9.024 + 0 + 0.624) - (8.452 + 1.251 + 3.441)
=-3.496

Working Capital(Q: Apr. 2005 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(8.468 + 0 + 0.8) - (8.919 + 1.436 + 0.217)
=-1.304

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2005) EBIT data.

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

Covista Communications's Operating Margin % for the quarter that ended in Apr. 2005 is calculated as:

Operating Margin %=Operating Income (Q: Apr. 2005 )/Revenue (Q: Apr. 2005 )
=0.204/11.253
=1.81 %

* 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.

Covista Communications Operating Income Related Terms

Covista Communications Operating Income Historical Data

* Premium members only.

The historical data trend for Covista 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.

Covista Communications Operating Income Chart

Covista Communications Annual Data
Trend Jan96 Jan97 Jan98 Jan99 Jan00 Jan01 Jan02 Jan03 Jan04 Jan05
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -10.00 -12.16 -9.17 -0.62 -4.29

Covista Communications Quarterly Data
Jul00 Oct00 Jan01 Apr01 Jul01 Oct01 Jan02 Apr02 Jul02 Oct02 Jan03 Apr03 Jul03 Oct03 Jan04 Apr04 Jul04 Oct04 Jan05 Apr05
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.91 -1.05 -1.53 0.20 0.20

Covista 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 Apr. 2005 adds up the quarterly data reported by the company within the most recent 12 months, which was $-2.18 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $-2.18 Mil mean?
Covista Communications (CVST) has a Operating Income of $-2.18 Mil as of Apr. 2005. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Covista Communications and its competitors.
Is Covista Communications' Operating Income too high?
Covista Communications' current Operating Income is $-2.18 Mil.
How does Covista Communications' Operating Income compare to FULO and TWER?
Covista Communications' Operating Income of $-2.18 Mil can be compared against companies in the Telecommunication Services 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 Telecommunication Services company?
A good Operating Income depends on the Telecommunication Services 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 Covista Communications and its competitors. Covista Communications's current Operating Income is $-2.18 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Covista Communications stock overvalued right now?
Covista Communications (CVST) has a current Operating Income of $-2.18 Mil. The current Operating Income is $-2.18 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 Covista Communications (CVST), the current Operating Income is $-2.18 Mil as of Apr. 2005. 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.

Covista Communications Business Description

Address 735 Broad Street, Unit 306, Chattanooga, TN, USA, 37402
Covista Communications Inc is a telecommunication service provider. Its products and services include voice, data, and internet solutions, including local, long-distance, and toll-free services, calling card, frame relay, Internet access, & directory assistance.