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Acino Holding AG (FRA:S3H) Operating Income : €-15.0 Mil (TTM As of Dec. 2013)


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What is Acino Holding AG Operating Income?

Acino Holding AG's Operating Income for the six months ended in Dec. 2013 was €-15.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was €-15.0 Mil.

Warning Sign:

Acino Holding AG had operating loss over the past 0.75 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Acino Holding AG's Operating Income for the six months ended in Dec. 2013 was €-15.0 Mil. Acino Holding AG's Revenue for the six months ended in Dec. 2013 was €262.4 Mil. Therefore, Acino Holding AG's Operating Margin % for the quarter that ended in Dec. 2013 was -5.71%.

Acino Holding AG'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. Acino Holding AG's annualized ROC % for the quarter that ended in Dec. 2013 was -2.63%. Acino Holding AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2013 was -6.77%.


Acino Holding AG Operating Income Historical Data

The historical data trend for Acino Holding AG'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.

Acino Holding AG Operating Income Chart

Acino Holding AG Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 40.41 -9.01 6.68 6.48 -14.98

Acino Holding AG Semi-Annual Data
Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 40.41 -9.01 6.68 6.48 -14.98

Acino Holding AG 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.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was €-15.0 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.


Acino Holding AG  (FRA:S3H) Operating Income Explanation

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

Acino Holding AG's annualized ROC % for the quarter that ended in Dec. 2013 is calculated as:

ROC % (Q: Dec. 2013 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2012 ) + Invested Capital (Q: Dec. 2013 ))/ count )
=-14.975 * ( 1 - 22.38% )/( (455.914 + 427.663)/ 2 )
=-11.623595/441.7885
=-2.63 %

where

Note: The Operating Income data used here is one times the annual (Dec. 2013) data.

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

Acino Holding AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2013 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2013 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2012  Q: Dec. 2013
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-14.975/( ( (159.365 + max(65.328, 0)) + (151.668 + max(66.042, 0)) )/ 2 )
=-14.975/( ( 224.693 + 217.71 )/ 2 )
=-14.975/221.2015
=-6.77 %

where Working Capital is:

Working Capital(Q: Dec. 2012 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(57.938 + 61.899 + 11.496) - (32.185 + 0 + 33.82)
=65.328

Working Capital(Q: Dec. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(53.689 + 56.415 + 7.548) - (20.362 + 0 + 31.248)
=66.042

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Dec. 2013) EBIT data.

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

Acino Holding AG's Operating Margin % for the quarter that ended in Dec. 2013 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2013 )/Revenue (Q: Dec. 2013 )
=-14.975/262.442
=-5.71 %

* 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.


Acino Holding AG Operating Income Related Terms

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Acino Holding AG (FRA:S3H) Business Description

Traded in Other Exchanges
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Acino Holding AG is a Switzerland-based company engaged in the pharmaceutical industry. The Company develops, manufactures, and markets pharmaceuticals in novel drug delivery forms internationally. It is divided into four segments Business to Consumer (BtC); Business to Business (BtB); Technology marketing (TM); and Production (Prod). The BtC segment comprises all direct marketing activities. Under the company's "Acino Switzerland" brand and, with the promise of Swiss quality, the company sells its products in emerging markets around the globe. This reporting segment includes the business purchased from Mepha/Cephalon in the Middle East, Africa, Latin America and Asia. The BtB segment comprises Acino's business with its internally developed products, for which the company also owns the intellectual property rights. Acino develops and produces high-quality medicines with proven active ingredients and modern drug delivery systems and grants licenses for them to leading pharmaceutical and generic pharmaceutical companies worldwide. The technology marketing segment comprises a broad spectrum of fully integrated contract services, including procurement, contract development, production and packaging for companies in the life sciences industry. On behalf of these customers, Acino develops a comprehensive product pipeline on the basis of its special technological know-how. This includes both new types of medicines as well as projects with innovative drug delivery systems for established active ingredients. The production segment is responsible for the manufacturing of products and the supplying of the other three segments, and generates turnover through the reimbursement of its services. The manufacturing costs of products are credited to the production segment at standard prices along with remuneration in the form of a mark-up for materials and production costs.

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