Grom Social Enterprises (Grom Social Enterprises) Operating Income : $-8.44 Mil (TTM As of Mar. 2024)

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What is Grom Social Enterprises Operating Income?

Grom Social Enterprises's Operating Income for the three months ended in Mar. 2024 was $-1.76 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $-8.44 Mil.

Warning Sign:

Grom Social Enterprises Inc has never been profitable in the past 3 years. It lost money every year.

Operating Margin % is calculated as Operating Income divided by its Revenue. Grom Social Enterprises's Operating Income for the three months ended in Mar. 2024 was $-1.76 Mil. Grom Social Enterprises's Revenue for the three months ended in Mar. 2024 was $0.87 Mil. Therefore, Grom Social Enterprises's Operating Margin % for the quarter that ended in Mar. 2024 was -201.49%.

Warning Sign:

Grom Social Enterprises Inc operating margin has been in a 5-year decline. The average rate of decline per year is -42.7%.

Grom Social Enterprises's 5-Year average Growth Rate for Operating Margin % was -42.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Grom Social Enterprises's annualized ROC % for the quarter that ended in Mar. 2024 was -40.96%. Grom Social Enterprises's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -298.56%.

Grom Social Enterprises Operating Income Historical Data

The historical data trend for Grom Social Enterprises'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.

Grom Social Enterprises Operating Income Chart

Grom Social Enterprises Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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-2.98

-2.91

-6.49

-7.33

-8.44

Grom Social Enterprises Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Operating Income	Get a 7-Day Free Trial															-1.77	-2.33	-1.98	-2.37	-1.76

Grom Social Enterprises 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 Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-8.44 Mil.

Grom Social Enterprises (NAS:GROM) Operating Income Explanation

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

Grom Social Enterprises's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-7.044 * ( 1 - 0% )	/	( (16.432	+	17.961)	/ 2 )
=	-7.044	/	17.1965
=	-40.96 %

where

	Invested Capital		(Q: Dec. 2023 )
=	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	))
=	18.133	-	2.219	-	( 2.505	-	max(0, 4.42	-	3.902	+	2.505	))
=	16.432

	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	))
=	18.896	-	2.27	-	( 0.452	-	max(0, 3.342	-	2.007	+	0.452	))
=	17.961

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

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

Grom Social Enterprises's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-2.596	/	( ( (0.911 + max(-2.893, 0))	+	(0.828 + max(-1.783, 0)) )	/	2 )
=	-2.596	/	( ( 0.911	+	0.828 )	/	2 )
=	-2.596	/	0.8695
=	-298.56 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.496	+	0.043	+	0.528)	-	(2.219	+	0.377	+	1.364)
=	-2.893

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.275	+	0.045	+	0.689)	-	(2.27	+	0.437	+	0.085)
=	-1.783

When net working capital is negative, 0 is used.

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

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

Grom Social Enterprises's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	-1.761	/	0.874
	=	-201.49 %

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.

Grom Social Enterprises Operating Income Related Terms

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

Grom Social Enterprises (Grom Social Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Grom Social Enterprises Inc (NAS:GROM) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

2060 NW Boca Raton Boulevard, Suite 6, Boca Raton, FL, USA, 33431

Website

https://www.gromsocial.com

Grom Social Enterprises Inc is a social media, technology, and entertainment company for kids focused on producing original content. In addition to providing a social media platform, the company creates content consisting of animated characters, interactive charts, videos, blogs, and games.

Executives

Goldman Sachs & Co. Llc	10 percent owner	200 WEST STREET, NEW YORK NY 10282
Goldman Sachs Group Inc	10 percent owner	200 WEST STREET, NEW YORK NY 10282
Jason Allen Williams	officer: CFO, Secretary and Treasurer	1649 NORTHWEST 136TH AVENUE, SUNRISE FL 33323
Robert Stevens	director	C/O GROM SOCIAL ENTERPRISES, INC., 2060 NW BOCA RATON BLVD., #6, BOCA RATON FL 33431
Norman Steven Rosenthal	director	14 TRAILS END ROAD, WILTON CT 06897-3330
Wayne Dearing	officer: President of TD Holdings Ltd.	C/O GROM SOCIAL ENTERPRISES, INC., 2060 NW BOCA RATON BLVD, #6, BOCA RATON FL 33431
Thomas J. Rutherford	director	16205 TALAVERA DE AVILA, TAMPA FL 33613
Melvin Leiner	director, 10 percent owner	C/O GROM SOCIAL ENTERPRISES, INC., 2060 NW BOCA RATON BLVD, SUITE 6, BOCA RATON FL 33431
Darren Marks	director, 10 percent owner	C/O GROM SOCIAL ENTERPRISES, INC., 2060 NW BOCA RATON BLVD, SUITE #6, BOCA RATON FL 33431
Ismael Llera	officer: CEO and CFO	2060 NW BOCA RATON BLVD, #6, BOCA RATON FL 33431
William Frederick Andrews	officer: Chief Operating Officer	4721 NW 27TH AVENUE, BOCA RATON FL 33434