LEAI (Legacy Education Alliance) Operating Income: $-2.51 Mil (TTM As of Mar. 2024)


What is Legacy Education Alliance Operating Income?

Legacy Education Alliance LEAI +20.00% Operating Income is $-2.51 Mil as of Mar. 2024.

Legacy Education Alliance's Operating Income for the three months ended in Mar. 2024 was $-0.79 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $-2.51 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Legacy Education Alliance's Operating Income for the three months ended in Mar. 2024 was $-0.79 Mil. Legacy Education Alliance's Revenue for the three months ended in Mar. 2024 was $0.13 Mil. Therefore, Legacy Education Alliance's Operating Margin % for the quarter that ended in Mar. 2024 was -590.98%.

Legacy Education Alliance'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. Legacy Education Alliance's annualized ROC % for the quarter that ended in Mar. 2024 was -16.46%. Legacy Education Alliance's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -3,974.68%.

Legacy Education Alliance  (OTCPK:LEAI) Operating Income Explanation

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

Legacy Education Alliance'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 )
=-3.144 * ( 1 - 0% )/( (19.085 + 19.11)/ 2 )
=-3.144/19.0975
=-16.46 %

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))
=0.825 - 7.306 - ( 0.043 - max(0, 26.274 - 0.708+0.043))
=19.085

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))
=0.873 - 8.115 - ( 0.091 - max(0, 27.108 - 0.756+0.091))
=19.11

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

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

Legacy Education Alliance'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 )
=-3.14/( ( (0.079 + max(-19.944, 0)) + (0.079 + max(-20.753, 0)) )/ 2 )
=-3.14/( ( 0.079 + 0.079 )/ 2 )
=-3.14/0.079
=-3,974.68 %

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 + 0.001 + 0.664) - (7.306 + 3.861 + 9.442)
=-19.944

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0.001 + 0.664) - (8.115 + 3.861 + 9.442)
=-20.753

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 %:

Legacy Education Alliance'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 )
=-0.786/0.133
=-590.98 %

* 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.

Legacy Education Alliance Operating Income Related Terms

Legacy Education Alliance Operating Income Historical Data

* Premium members only.

The historical data trend for Legacy Education Alliance'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.

Legacy Education Alliance Operating Income Chart

Legacy Education Alliance Annual Data
Trend Sep14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.64 13.20 -0.42 -2.24 -2.65

Legacy Education Alliance 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 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 -0.92 -0.63 -0.82 -0.28 -0.79

Legacy Education Alliance 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 $-2.51 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $-2.51 Mil mean?
Legacy Education Alliance (LEAI) has a Operating Income of $-2.51 Mil as of Mar. 2024. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Legacy Education Alliance and its competitors.
Is Legacy Education Alliance's Operating Income too high?
Legacy Education Alliance's current Operating Income is $-2.51 Mil.
How does Legacy Education Alliance's Operating Income compare to TAL and EDU?
Legacy Education Alliance's Operating Income of $-2.51 Mil can be compared against companies in the Education industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for an Education company?
A good Operating Income depends on the Education industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Legacy Education Alliance and its competitors. Legacy Education Alliance's current Operating Income is $-2.51 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Legacy Education Alliance stock overvalued right now?
Legacy Education Alliance (LEAI) has a current Operating Income of $-2.51 Mil. The current Operating Income is $-2.51 Mil. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Legacy Education Alliance (LEAI), the current Operating Income is $-2.51 Mil as of Mar. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Legacy Education Alliance Business Description

Address 120 N. Main Street, New City, NY, USA, 10956
Legacy Education Alliance Inc is engaged in the provision of educational training seminars, conferences, and services. It offers comprehensive instruction and mentorship in the areas of personal finance, entrepreneurship, real estate investing strategies, and techniques. Some of its brands are Homemade Investor, and Building Wealth with Legacy. Its geographical segments are North America, the United Kingdom, and Other foreign markets, of which the majority of its revenue comes from North America.