ESYL (Easylink Solutions) Operating Income: $-1.56 Mil (TTM As of Nov. 2007)


What is Easylink Solutions Operating Income?

Easylink Solutions ESYL -3.03% Operating Income is $-1.56 Mil as of Nov. 2007.

Easylink Solutions's Operating Income for the three months ended in Nov. 2007 was $-0.12 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2007 was $-1.56 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Easylink Solutions's Operating Income for the three months ended in Nov. 2007 was $-0.12 Mil. Easylink Solutions's Revenue for the three months ended in Nov. 2007 was $0.00 Mil. Therefore, Easylink Solutions's Operating Margin % for the quarter that ended in Nov. 2007 was %.

Easylink Solutions'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. Easylink Solutions's annualized ROC % for the quarter that ended in Nov. 2007 was -27.40%. Easylink Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Nov. 2007 was %.

Easylink Solutions  (OTCPK:ESYL) Operating Income Explanation

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

Easylink Solutions's annualized ROC % for the quarter that ended in Nov. 2007 is calculated as:

ROC % (Q: Nov. 2007 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Aug. 2007 ) + Invested Capital (Q: Nov. 2007 ))/ count )
=-0.488 * ( 1 - 0% )/( (1.65 + 1.912)/ 2 )
=-0.488/1.781
=-27.40 %

where

Invested Capital(Q: Aug. 2007 )
=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))
=0.208 - 0.094 - ( 0.198 - max(0, 1.744 - 0.208+0.198))
=1.65

Invested Capital(Q: Nov. 2007 )
=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))
=0.215 - 0.148 - ( 0.05 - max(0, 1.9 - 0.055+0.05))
=1.912

Note: The Operating Income data used here is four times the quarterly (Nov. 2007) data.

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

Easylink Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Nov. 2007 is calculated as:

ROC (Joel Greenblatt) %(Q: Nov. 2007 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Aug. 2007  Q: Nov. 2007
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-0.488/( ( (0 + max(-0.147, 0)) + (0 + max(-0.208, 0)) )/ 2 )
=-0.488/( ( 0 + 0 )/ 2 )
=-0.488/0
= %

where Working Capital is:

Working Capital(Q: Aug. 2007 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0.01) - (0.094 + 0 + 0.063)
=-0.147

Working Capital(Q: Nov. 2007 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0.005) - (0.148 + 0 + 0.065)
=-0.208

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Nov. 2007) EBIT data.

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

Easylink Solutions's Operating Margin % for the quarter that ended in Nov. 2007 is calculated as:

Operating Margin %=Operating Income (Q: Nov. 2007 )/Revenue (Q: Nov. 2007 )
=-0.122/0
= %

* 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.

Easylink Solutions Operating Income Related Terms

Easylink Solutions Operating Income Historical Data

* Premium members only.

The historical data trend for Easylink Solutions'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.

Easylink Solutions Operating Income Chart

Easylink Solutions Annual Data
Trend Aug05 Aug06
Operating Income
-0.02 -0.08

Easylink Solutions Quarterly Data
Aug05 Nov05 Feb06 May06 Aug06 Nov06 Feb07 May07 Aug07 Nov07
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.04 -0.04 -0.08 -1.31 -0.12

Easylink Solutions 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 Nov. 2007 adds up the quarterly data reported by the company within the most recent 12 months, which was $-1.56 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 $-1.56 Mil mean?
Easylink Solutions (ESYL) has a Operating Income of $-1.56 Mil as of Nov. 2007. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Easylink Solutions and its competitors.
Is Easylink Solutions' Operating Income too high?
Easylink Solutions' current Operating Income is $-1.56 Mil.
How does Easylink Solutions' Operating Income compare to SYSXD?
Easylink Solutions' Operating Income of $-1.56 Mil can be compared against companies in the Software 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 Software company?
A good Operating Income depends on the Software 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 Easylink Solutions and its competitors. Easylink Solutions's current Operating Income is $-1.56 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Easylink Solutions stock overvalued right now?
Easylink Solutions (ESYL) has a current Operating Income of $-1.56 Mil. The current Operating Income is $-1.56 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 Easylink Solutions (ESYL), the current Operating Income is $-1.56 Mil as of Nov. 2007. 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.

Easylink Solutions Business Description

Address 58 Derech Ako, Kiryat Bialik, ISR, 2709361
Easylink Solutions Corp, through its subsidiary, a fintech technology company, develops next-generation fintech digital banking and blockchain technology software solutions. It provides versatile, user-friendly tools to support financial projects, such as digital banking, blockchain applications, community initiatives, and modernizing traditional financial systems through digital and blockchain frameworks. The Group also focuses on developing financial security solutions to provide safety technology for various sectors, including banking, hedge funds, credit cards, clearing systems, etc. It has one operating and reportable segment, the development of technology for software platforms for banking, finance, blockchain, and digital assets.