Imagination Technologies Group (Imagination Technologies Group) Operating Income : $9.77 Mil (TTM As of Apr. 2017)

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What is Imagination Technologies Group Operating Income?

Imagination Technologies Group's Operating Income for the six months ended in Apr. 2017 was $6.25 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2017 was $9.77 Mil.

Warning Sign:

Imagination Technologies Group PLC had operating loss over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Imagination Technologies Group's Operating Income for the six months ended in Apr. 2017 was $6.25 Mil. Imagination Technologies Group's Revenue for the six months ended in Apr. 2017 was $102.11 Mil. Therefore, Imagination Technologies Group's Operating Margin % for the quarter that ended in Apr. 2017 was 6.12%.

Imagination Technologies Group'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. Imagination Technologies Group's annualized ROC % for the quarter that ended in Apr. 2017 was -11.06%. Imagination Technologies Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2017 was 12.72%.

Imagination Technologies Group Operating Income Historical Data

The historical data trend for Imagination Technologies Group'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.

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Imagination Technologies Group Operating Income Chart

Imagination Technologies Group Annual Data

Trend

Apr08

Apr09

Apr10

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Apr12

Apr13

Apr14

Apr15

Apr16

Apr17

Operating Income

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17.28

-0.11

8.52

-38.35

9.86

Imagination Technologies Group Semi-Annual Data
	Mar07	Sep07	Oct08	Apr09	Oct09	Apr10	Oct10	Apr11	Oct11	Apr12	Oct12	Apr13	Oct13	Apr14	Oct14	Apr15	Oct15	Apr16	Oct16	Apr17
Operating Income	Get a 7-Day Free Trial															22.07	-8.46	-30.45	3.52	6.25

Imagination Technologies Group 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 Apr. 2017 adds up the semi-annually data reported by the company within the most recent 12 months, which was $9.77 Mil.

Imagination Technologies Group (OTCPK:IMGTY) Operating Income Explanation

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

Imagination Technologies Group's annualized ROC % for the quarter that ended in Apr. 2017 is calculated as:

	ROC % (Q: Apr. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2016 )	+	Invested Capital (Q: Apr. 2017 ))	/ count )
=	12.494 * ( 1 - 329.86% )	/	( (262.542	+	256.851)	/ 2 )
=	-28.7187084	/	259.6965
=	-11.06 %

where

	Invested Capital		(Q: Oct. 2016 )
=	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	))
=	313.137	-	38.974	-	( 11.621	-	max(0, 62.186	-	91.835	+	11.621	))
=	262.542

	Invested Capital		(Q: Apr. 2017 )
=	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	))
=	298.278	-	19.719	-	( 21.708	-	max(0, 71.373	-	98.805	+	21.708	))
=	256.851

Note: The Operating Income data used here is two times the semi-annual (Apr. 2017) data.

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

Imagination Technologies Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2017 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Apr. 2017 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Oct. 2016		Q: Apr. 2017
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	12.658	/	( ( (82.388 + max(23.086, 0))	+	(80.887 + max(12.591, 0)) )	/	2 )
=	12.658	/	( ( 105.474	+	93.478 )	/	2 )
=	12.658	/	99.476
=	12.72 %

where Working Capital is:

	Working Capital		(Q: Oct. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(44.274	+	0.436	+	35.504)	-	(38.974	+	0	+	18.154)
=	23.086

	Working Capital		(Q: Apr. 2017 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(20.33	+	0.096	+	56.671)	-	(19.719	+	0	+	44.787)
=	12.591

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Apr. 2017) EBIT data.

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

Imagination Technologies Group's Operating Margin % for the quarter that ended in Apr. 2017 is calculated as:

Operating Margin %	=	Operating Income (Q: Apr. 2017 )	/	Revenue (Q: Apr. 2017 )
	=	6.247	/	102.105
	=	6.12 %

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.

Imagination Technologies Group Operating Income Related Terms

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Imagination Technologies Group (Imagination Technologies Group) Business Description

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http://www.imgtec.com

Imagination Technologies Group PLC is a United Kingdom-based company that is principally engaged in creating and licensing processor solutions, which consist of graphics, video and vision processing, general purpose and embedded processing, multistandard communications, cloud connectivity, and other solutions. The company's technology is applied in a broad range of markets, including mobile phones, mobile computing, home electronics, handheld multimedia, automotive, networking, wearables, and Internet of Things products. It has a worldwide network of licensees, including semiconductor manufacturers, network operators, and OEM/ODMs. It has a business presence in many countries, including China, France, Germany, Israel, Italy, Japan, South Korea, Taiwan, the U.K., and the United States.

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