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FVTI (Fortune Valley Treasures) Operating Income : $-5.05 Mil (TTM As of Jun. 2024)


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What is Fortune Valley Treasures Operating Income?

Fortune Valley Treasures's Operating Income for the three months ended in Jun. 2024 was $-0.77 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was $-5.05 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Fortune Valley Treasures's Operating Income for the three months ended in Jun. 2024 was $-0.77 Mil. Fortune Valley Treasures's Revenue for the three months ended in Jun. 2024 was $0.25 Mil. Therefore, Fortune Valley Treasures's Operating Margin % for the quarter that ended in Jun. 2024 was -312.55%.

Fortune Valley Treasures'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. Fortune Valley Treasures's annualized ROC % for the quarter that ended in Jun. 2024 was -103.11%. Fortune Valley Treasures's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was -427.18%.

Fortune Valley Treasures Operating Income Historical Data

The historical data trend for Fortune Valley Treasures'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.

Fortune Valley Treasures Operating Income Chart

Fortune Valley Treasures Annual Data
Trend Aug15 Aug16 Aug17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only -0.38 2.44 2.18 -0.11 -3.71

Fortune Valley Treasures Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -0.42 -1.22 -2.06 -0.99 -0.77

Fortune Valley Treasures 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 Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-5.05 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.

Fortune Valley Treasures  (OTCPK:FVTI) Operating Income Explanation

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

Fortune Valley Treasures's annualized ROC % for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-3.088 * ( 1 - 0% )/( (3.185 + 2.805)/ 2 )
=-3.088/2.995
=-103.11 %

where

Invested Capital(Q: Mar. 2024 )
=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))
=5.149 - 1.947 - ( 0.017 - max(0, 3.821 - 4.098+0.017))
=3.185

Invested Capital(Q: Jun. 2024 )
=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))
=4.595 - 2.291 - ( 0.007 - max(0, 4.153 - 3.652+0.007))
=2.805

Note: The Operating Income data used here is four times the quarterly (Jun. 2024) data.

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

Fortune Valley Treasures's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2024  Q: Jun. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-3.08/( ( (0.349 + max(0.784, 0)) + (0.293 + max(0.016000000000001, 0)) )/ 2 )
=-3.08/( ( 1.133 + 0.309 )/ 2 )
=-3.08/0.721
=-427.18 %

where Working Capital is:

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.529 + 0.025 + 1.527) - (1.947 + 1.351 + -0.00099999999999989)
=0.784

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.156 + 0.035 + 1.454) - (2.291 + 1.338 + -8.8817841970013E-16)
=0.016000000000001

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2024) EBIT data.

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

Fortune Valley Treasures's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2024 )/Revenue (Q: Jun. 2024 )
=-0.772/0.247
=-312.55 %

* 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.

Fortune Valley Treasures Operating Income Related Terms

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

Fortune Valley Treasures Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Fortune Valley Treasures Inc (OTCPK:FVTI) » Definitions » Operating Income
Comparable Companies
JOAN TLF LNBY PTZH FTEL NVVE ZKGCF SSUNF SPEV GHST ORLY TSX:ATD AZO SHSE:601888 TSCO ULTA GPC BBY ADX:ADNOCDIST CASY
Traded in Other Exchanges
N/A
Address
No. 139 Liansheng Road, 16th Floor, Building 2, A Building, Humen Town, Guangdong, Dongguan, CHN, 523000
Website
http://www.fvti.show
Fortune Valley Treasures Inc is engaged in operations of wholesale distribution and retail sales of alcoholic beverages of wine and distilled liquors, and drinking water. The company is into acquiring businesses that are in the food, beverage, and alcohol industries. Its products include a variety of wines, such as dry red wine, dry white wine, rose wine, and sweet wine, and other products. Its products are sold to retailers, such as wine shops, convenience stores, and supermarkets.
Executives
Kaihong Lin director, officer: CFO, Treasurer, Director NO. 10 OF TUANJIE 2ND ROAD, BEICE, HUMEN, DONGGUAN, GUANGDONG F4 518000
Xinlong Shen director, officer: CEO, CFO 19F, LIANHE TOWER, 1069 NANHAI AVE,, NANSHAN DISTRICT, SHENZHEN F4 518000

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