Inspired Entertainment (Inspired Entertainment) Operating Income : $39.9 Mil (TTM As of Dec. 2023)

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What is Inspired Entertainment Operating Income?

Inspired Entertainment's Operating Income for the three months ended in Dec. 2023 was $9.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $39.9 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Inspired Entertainment's Operating Income for the three months ended in Dec. 2023 was $9.3 Mil. Inspired Entertainment's Revenue for the three months ended in Dec. 2023 was $81.2 Mil. Therefore, Inspired Entertainment's Operating Margin % for the quarter that ended in Dec. 2023 was 11.45%.

Inspired Entertainment'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. Inspired Entertainment's annualized ROC % for the quarter that ended in Dec. 2023 was 0.00%. Inspired Entertainment's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 43.69%.

Inspired Entertainment Operating Income Historical Data

The historical data trend for Inspired Entertainment'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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Inspired Entertainment Operating Income Chart

Inspired Entertainment Annual Data

Trend

Dec14

Dec15

Sep17

Sep18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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-6.30

11.40

-2.90

46.50

39.90

Inspired Entertainment Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															11.80	4.60	13.80	12.20	9.30

Inspired Entertainment 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 Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $39.9 Mil.

Inspired Entertainment (NAS:INSE) Operating Income Explanation

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

Inspired Entertainment's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	37.2 * ( 1 - 100% )	/	( (216.7	+	233.8)	/ 2 )
=	0	/	225.25
=	0.00 %

where

	Invested Capital		(Q: Sep. 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	))
=	304.7	-	61.6	-	( 26.4	-	max(0, 77.8	-	133.3	+	26.4	))
=	216.7

	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	))
=	340.9	-	67.1	-	( 40	-	max(0, 100.7	-	152.5	+	40	))
=	233.8

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

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

Inspired Entertainment's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	41.2	/	( ( (66.9 + max(33.2, 0))	+	(77 + max(11.5, 0)) )	/	2 )
=	41.2	/	( ( 100.1	+	88.5 )	/	2 )
=	41.2	/	94.3
=	43.69 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(29.2	+	39.9	+	37.8)	-	(61.6	+	8.7	+	3.4)
=	33.2

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(39.8	+	32.3	+	15.6)	-	(67.1	+	8.5	+	0.60000000000001)
=	11.5

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

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

Inspired Entertainment's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	9.3	/	81.2
	=	11.45 %

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.

Inspired Entertainment Operating Income Related Terms

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

Inspired Entertainment (Inspired Entertainment) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Inspired Entertainment Inc (NAS:INSE) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

250 West 57th Street, Suite 415, New York, NY, USA, 10107

Website

https://www.inseinc.com

Inspired Entertainment Inc is a gaming technology company based in the United States. Its core business involves the development of Virtual Sports and Server-Based Gaming systems with associated terminals and digital content to regulate betting, gaming, and lottery operators around the world. It operates through four segments namely Gaming; Virtual Sports; Interactive and Leisure. The company generates maximum revenue from the Gaming segment. Its Gaming segment supplies gaming terminals as well as gaming software and games for the terminals provided to betting offices, casinos, gaming halls, and high street adult gaming centers. Geographically, it derives a majority of revenue from the UK.

Executives

Michael R. Chambrello	director	C/O SCIENTIFIC GAMES CORPORATION, 750 LEXINGTON AVENUE, 25TH FLOOR, NEW YORK NY 10022
Andrew C Stone	officer: See Remarks	C/O INSPIRED ENTERTAINMENT, INC., 250 WEST 57TH STREET SUITE 415, NEW YORK NY 10107
Evan Wainhouse Davis	10 percent owner	15 EAST LEVERING MILL ROAD, BALA CYNWYD PA 19004
Katja Tautscher	director	BOREALIS AG, WAGRAMER STRASSE 17 TO 19, VIENNA C4 1220
Desiree G Rogers	director	C/O PINNACLE ENTERTAINMENT, INC., 3980 HOWARD HUGHES PARKWAY, LAS VEGAS NV 89169
Marcus Alexander Hoye	director	RUNWAY EAST BUILDING, 10 FINSBURY SQUARE, LONDON X0 EC2A1AF
Steven M Saferin	director	C/O SCIENTIFIC GAMES INTERNATIONAL, INC., 1500 BLUEGRASS LAKES PARKWAY, ALPHARETTA, GA 30004
Brooks H Pierce	officer: President and COO	C/O SCIENTIFIC GAMES CORPORATION, 750 LEXINGTON AVENUE, NEW YORK, NY 10022
Carys Damon	officer: General Counsel	250 WEST 57TH STREET SUITE 2223, NEW YORK NY 10107
Partners Llp Vitruvian	10 percent owner	105 WIGMORE STREET, LONDON X0 W1U 1QY
Luke Lyon Alvarez	director, officer: Chief Executive Officer	4 PITMAN'S ALLEY, GIBRALTAR J1 GX11 1AA
Hg Vora Capital Management, Llc	10 percent owner	330 MADISON AVENUE, 21ST FLOOR, NEW YORK NY 10017
Vip I B L.p.	10 percent owner	105 WIGMORE STREET, LONDON X0 WIV IQY
John M Vandemore	director	6355 S. BUFFALO DRIVE, LAS VEGAS NV 89521
Ira H Raphaelson	director	LAS VEGAS SANDS CORP., 3355 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109