Be Heard Group (LSE:BHRD) Operating Income: £-6.99 Mil (TTM As of Dec. 2019)

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What is Be Heard Group Operating Income?

Be Heard Group LSE:BHRD Operating Income is £-6.99 Mil as of Dec. 2019. The stock has 3 warning signs investors should review.

Be Heard Group's Operating Income for the six months ended in Dec. 2019 was £-5.74 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2019 was £-6.99 Mil.

Warning Sign:

Be Heard Group PLC had operating loss over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Be Heard Group's Operating Income for the six months ended in Dec. 2019 was £-5.74 Mil. Be Heard Group's Revenue for the six months ended in Dec. 2019 was £27.96 Mil. Therefore, Be Heard Group's Operating Margin % for the quarter that ended in Dec. 2019 was -20.53%.

Be Heard 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. Be Heard Group's annualized ROC % for the quarter that ended in Dec. 2019 was -23.07%. Be Heard Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 was -227.58%.

Be Heard Group  (LSE:BHRD) Operating Income Explanation

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

Be Heard Group's annualized ROC % for the quarter that ended in Dec. 2019 is calculated as:

ROC % (Q: Dec. 2019 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2019 ) + Invested Capital (Q: Dec. 2019 ))/ count )
=-11.478 * ( 1 - 7.91% )/( (55.871 + 35.746)/ 2 )
=-10.5700902/45.8085
=-23.07 %

where

Invested Capital(Q: Jun. 2019 )
=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))
=53.064 - 9.244 - ( 3.064 - max(0, 27.759 - 15.708+3.064))
=55.871

Invested Capital(Q: Dec. 2019 )
=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))
=42.117 - 11.442 - ( 3.13 - max(0, 17.494 - 12.423+3.13))
=35.746

Note: The Operating Income data used here is two times the semi-annual (Dec. 2019) data.

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

Be Heard Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2019 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2019  Q: Dec. 2019
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-11.478/( ( (5.274 + max(-11.366, 0)) + (4.813 + max(-6.535, 0)) )/ 2 )
=-11.478/( ( 5.274 + 4.813 )/ 2 )
=-11.478/5.0435
=-227.58 %

where Working Capital is:

Working Capital(Q: Jun. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(11.771 + 0 + 0.873) - (9.244 + 0 + 14.766)
=-11.366

Working Capital(Q: Dec. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(6.837 + 0 + 2.456) - (11.442 + 0 + 4.386)
=-6.535

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2019) EBIT data.

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

Be Heard Group's Operating Margin % for the quarter that ended in Dec. 2019 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2019 )/Revenue (Q: Dec. 2019 )
=-5.739/27.958
=-20.53 %

* 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.

Be Heard Group Operating Income Related Terms

Be Heard Group Operating Income Historical Data

* Premium members only.

The historical data trend for Be Heard 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.

Be Heard Group Operating Income Chart

Be Heard Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18
Operating Income
-1.14 -3.64 -3.88 -9.70

Be Heard Group Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.86 -3.49 -6.21 -1.25 -5.74

Be Heard 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 Dec. 2019 adds up the semi-annually data reported by the company within the most recent 12 months, which was £-6.99 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 £-6.99 Mil mean?
Be Heard Group (LSE:BHRD) has a Operating Income of £-6.99 Mil as of Dec. 2019. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Be Heard Group and its competitors.
Is Be Heard Group's Operating Income too high?
Be Heard Group's current Operating Income is £-6.99 Mil.
How does Be Heard Group's Operating Income compare to LEVB and INUV?
Be Heard Group's Operating Income of £-6.99 Mil can be compared against companies in the Media - Diversified 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 a Media - Diversified company?
A good Operating Income depends on the Media - Diversified 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 Be Heard Group and its competitors. Be Heard Group's current Operating Income is £-6.99 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Be Heard Group stock overvalued right now?
Be Heard Group (LSE:BHRD) has a current Operating Income of £-6.99 Mil. The current Operating Income is £-6.99 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 Be Heard Group (LSE:BHRD), the current Operating Income is £-6.99 Mil as of Dec. 2019. 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.

Be Heard Group Business Description

Address 53 Frith Street, London, GBR, W1D 4SN
Be Heard Group PLC is a United Kingdoms-based digital marketing group operating at the intersection of marketing, technology, and e-commerce. Its segments include Be Heard Group; Design, Build and UX; Media Planning and Buying; Content Management; Analytics Consultancy; and Full-Service Agency. It plans, buys and manages multi-channel marketing campaigns including paid search, search engine optimization, paid social media, programmatic and negotiated display media across desktop, mobile and other digitally connected devices. Most of the company's revenue is generated from the media planning and buying segment in the UK. Geographically it operates in the UK and Non-UK segments.