Audeo Oncology (Audeo Oncology) Operating Income : $-9.18 Mil (TTM As of Sep. 2012)

View and export this data going back to . Start your Free Trial

What is Audeo Oncology Operating Income?

Audeo Oncology's Operating Income for the three months ended in Sep. 2012 was $-4.81 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2012 was $-9.18 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Audeo Oncology's Operating Income for the three months ended in Sep. 2012 was $-4.81 Mil. Audeo Oncology's Revenue for the three months ended in Sep. 2012 was $0.06 Mil. Therefore, Audeo Oncology's Operating Margin % for the quarter that ended in Sep. 2012 was -7,883.61%.

Audeo Oncology'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. Audeo Oncology's annualized ROC % for the quarter that ended in Sep. 2012 was -1,511.67%. Audeo Oncology's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2012 was -8,363.48%.

Audeo Oncology Operating Income Historical Data

The historical data trend for Audeo Oncology'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.

Audeo Oncology Operating Income Chart

Audeo Oncology Annual Data

Trend

Jun10

Jun11

Jun12

Operating Income

-4.00

-7.92

-9.48

Audeo Oncology Quarterly Data
	Jun11	Mar12	Jun12	Sep12
Operating Income	-3.43	-	-4.37	-4.81

Audeo Oncology 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 Sep. 2012 adds up the quarterly data reported by the company within the most recent 12 months, which was $-9.18 Mil.

Audeo Oncology (DELISTED:AURX) Operating Income Explanation

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

Audeo Oncology's annualized ROC % for the quarter that ended in Sep. 2012 is calculated as:

	ROC % (Q: Sep. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2012 )	+	Invested Capital (Q: Sep. 2012 ))	/ count )
=	-19.236 * ( 1 - 0% )	/	( (1.067	+	1.478)	/ 2 )
=	-19.236	/	1.2725
=	-1,511.67 %

where

	Invested Capital		(Q: Jun. 2012 )
=	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	))
=	9.712	-	2.027	-	( 7.656	-	max(0, 2.604	-	9.222	+	7.656	))
=	1.067

	Invested Capital		(Q: Sep. 2012 )
=	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	))
=	7.805	-	4.509	-	( 4.524	-	max(0, 5.534	-	7.352	+	4.524	))
=	1.478

Note: The Operating Income data used here is four times the quarterly (Sep. 2012) data.

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

Audeo Oncology's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2012 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2012 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2012		Q: Sep. 2012
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-19.236	/	( ( (0.251 + max(-1.106, 0))	+	(0.209 + max(-2.981, 0)) )	/	2 )
=	-19.236	/	( ( 0.251	+	0.209 )	/	2 )
=	-19.236	/	0.23
=	-8,363.48 %

where Working Capital is:

	Working Capital		(Q: Jun. 2012 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	1.498)	-	(2.027	+	0	+	0.577)
=	-1.106

	Working Capital		(Q: Sep. 2012 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	2.553)	-	(4.509	+	0	+	1.025)
=	-2.981

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2012) EBIT data.

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

Audeo Oncology's Operating Margin % for the quarter that ended in Sep. 2012 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2012 )	/	Revenue (Q: Sep. 2012 )
	=	-4.809	/	0.061
	=	-7,883.61 %

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.

Audeo Oncology Operating Income Related Terms

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

Audeo Oncology (Audeo Oncology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Audeo Oncology Inc (DELISTED:AURX) » Definitions » Operating Income

Traded in Other Exchanges

N/A

Address

Website

http://www.audeooncology.com

Audeo Oncology, Inc was incorporated in Delaware in June 2012. It is a late stage biopharmaceutical company utilizing its Hyaluronic Acid Chemotransport Technology, or HyACT, to target cancer drugs preferentially to tumor cells to enhance drug activity. HyACT is a flexible platform technology designed to increase the effectiveness of anti-cancer agents without increasing treatment toxicity. It seeks to reduce the risks related to drug development by using known anti-cancer drugs, and aim to enhance their commercial value by improving their effectiveness. The Company's lead HyACT product candidate, HA-Irinotecan, is currently in a pivotal Phase III clinical trial for metastatic colorectal cancer, or mCRC. HA-Irinotecan is also in an investigator-sponsored Phase II clinical trial for small cell lung cancer, or SCLC. It also has two other HyACT product candidates that have successfully completed Phase I clinical trials. In addition to its current clinical-stage product candidates, it aims to develop a pipeline of product candidates by exploiting its significant know-how in cancer stem cell biology and cancer metabolism combined with the Versatile Assembly on Stable Templates, or VAST, molecule drug discovery technology that it will in-license. The Company's lead product candidate is HyACT-targeted irinotecan, or HA-Irinotecan, for the treatment of mCRC. Irinotecan, which is marketed in major markets by Pfizer as Camptosar, is an off-patent chemotherapy drug widely used in the treatment of mCRC. Government authorities in the United States (including federal, state and local authorities) and in other countries extensively regulate the manufacture, research, clinical development, labeling, packaging, distribution, post-approval monitoring and reporting, advertising, promotion, export and import of pharmaceutical products, such as those it is developing.