Emmis (EMMS) Operating Income: $-7.69 Mil (TTM As of Feb. 2020)

What is Emmis Operating Income?

Emmis EMMS 16 Operating Income is $-7.69 Mil as of Feb. 2020. GuruFocus rates EMMS with a GF Score™ of 16/100.

Emmis's Operating Income for the three months ended in Feb. 2020 was $-2.79 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2020 was $-7.69 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Emmis's Operating Income for the three months ended in Feb. 2020 was $-2.79 Mil. Emmis's Revenue for the three months ended in Feb. 2020 was $10.44 Mil. Therefore, Emmis's Operating Margin % for the quarter that ended in Feb. 2020 was -26.69%.

Emmis'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. Emmis's annualized ROC % for the quarter that ended in Feb. 2020 was -5.30%. Emmis's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2020 was -258.00%.

Emmis (OTCPK:EMMS) Operating Income Explanation

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

Emmis's annualized ROC % for the quarter that ended in Feb. 2020 is calculated as:

	ROC % (Q: Feb. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2019 )	+	Invested Capital (Q: Feb. 2020 ))	/ count )
=	-11.148 * ( 1 - 41.15% )	/	( (123.925	+	123.633)	/ 2 )
=	-6.560598	/	123.779
=	-5.30 %

where

	Invested Capital		(Q: Nov. 2019 )
=	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	))
=	241.507	-	28.106	-	( 111.345	-	max(0, 41.285	-	130.761	+	111.345	))
=	123.925

	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	))
=	221.992	-	7.237	-	( 93.036	-	max(0, 20.414	-	111.536	+	93.036	))
=	123.633

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

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

Emmis's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2020 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Feb. 2020 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Nov. 2019		Q: Feb. 2020
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-70.22	/	( ( (23.899 + max(-13.197, 0))	+	(23.63 + max(6.906, 0)) )	/	2 )
=	-70.22	/	( ( 23.899	+	30.536 )	/	2 )
=	-70.22	/	27.2175
=	-258.00 %

where Working Capital is:

	Working Capital		(Q: Nov. 2019 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(5.599	+	0	+	13.817)	-	(28.106	+	2.639	+	1.868)
=	-13.197

	Working Capital		(Q: Feb. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(4.627	+	0	+	13.873)	-	(7.237	+	2.605	+	1.752)
=	6.906

When net working capital is negative, 0 is used.

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

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

Emmis's Operating Margin % for the quarter that ended in Feb. 2020 is calculated as:

Operating Margin %	=	Operating Income (Q: Feb. 2020 )	/	Revenue (Q: Feb. 2020 )
	=	-2.787	/	10.444
	=	-26.69 %

* 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.

Emmis Operating Income Related Terms

Emmis Operating Income Historical Data

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The historical data trend for Emmis's Operating Income can be seen below:

Emmis Operating Income Chart

Emmis Annual Data

Trend

Feb11

Feb12

Feb13

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Operating Income

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29.22

18.32

14.39

-10.67

-13.27

Emmis Quarterly Data
	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20
Operating Income	Get a 7-Day Free Trial															-2.39	4.69	-1.43	-8.16	-2.79

16GF Score

Emmis Corp EMMS

Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.

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Emmis 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 Feb. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $-7.69 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of $-7.69 Mil mean?

Emmis (EMMS) has a Operating Income of $-7.69 Mil as of Feb. 2020. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Emmis and its competitors.

Is Emmis' Operating Income too high?

Emmis' current Operating Income is $-7.69 Mil. Overall, Emmis has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.

How does Emmis' Operating Income compare to SALM and UONE?

Emmis' Operating Income of $-7.69 Mil can be compared against companies in the Media - Diversified 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 Media - Diversified company?

A good Operating Income depends on the Media - Diversified 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 Emmis and its competitors. Emmis's current Operating Income is $-7.69 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Emmis stock overvalued right now?

Emmis (EMMS) has a current Operating Income of $-7.69 Mil. The current Operating Income is $-7.69 Mil. Emmis' overall GF Score™ is 16/100. 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 Emmis (EMMS), the current Operating Income is $-7.69 Mil as of Feb. 2020. 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.

Emmis Business Description

Industry Communication Services Media - Diversified

Comparable Companies SALM UONE NTN SBSAA MDIA BBGI CMLS CSSE XPAR:VIV SIRI FOXA LSXMA FWONA NWSA XTER:RRTL SHSE:600556 LUX:SESGL LSE:ITV NXST MEX:TLEVISA CPO

Address 40 Monument Circle, Suite 700, One EMMIS Plaza, Indianapolis, IN, USA, 46204

Website https://www.emmis.com

Emmis Corp, formerly Emmis Communications Corp is a diversified media company principally focused on radio broadcasting. The company owns and operates radio and magazine entities in large and medium-sized markets throughout the United States. Its operations have aligned into two business segments: Radio and Publishing. A vast majority of revenue is generated from the Radio segment. The company generates revenue in the form of Advertising; Circulation, which includes revenues from digital and home delivery subscriptions; Nontraditional, which includes ticket sales and sponsorship of events on their stations and magazine conduct; LMA(Local Marketing Agreement) Fees; and other revenues.

16GF Score

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$1.55

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