ECO Buildings Group (LSE:ECOB) Operating Income : £ Mil (TTM As of Jun. 2023)

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What is ECO Buildings Group Operating Income?

ECO Buildings Group's Operating Income for the six months ended in Jun. 2023 was £-0.09 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. ECO Buildings Group's Operating Income for the six months ended in Jun. 2023 was £-0.09 Mil. ECO Buildings Group's Revenue for the six months ended in Jun. 2023 was £0.03 Mil. Therefore, ECO Buildings Group's Operating Margin % for the quarter that ended in Jun. 2023 was -329.63%.

ECO Buildings 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. ECO Buildings Group's annualized ROC % for the quarter that ended in Jun. 2023 was -1.68%. ECO Buildings Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 was -20.84%.

ECO Buildings Group Operating Income Historical Data

The historical data trend for ECO Buildings 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.

* Premium members only.

ECO Buildings Group Operating Income Chart

ECO Buildings Group Annual Data

Trend

Dec21

Operating Income

ECO Buildings Group Semi-Annual Data
	Jun22	Jun23
Operating Income	-0.05	-0.09

ECO Buildings 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 Jun. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was £ Mil.

ECO Buildings Group (LSE:ECOB) Operating Income Explanation

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

ECO Buildings Group's annualized ROC % for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-0.178 * ( 1 - 0% )	/	( (0	+	10.617)	/ 1 )
=	-0.178	/	10.617
=	-1.68 %

where

	Invested Capital		(Q: Jun. 2022 )
=	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	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: Jun. 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	))
=	13.264	-	2.1	-	( 0.547	-	max(0, 2.1	-	4.782	+	0.547	))
=	10.617

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

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

ECO Buildings Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2022		Q: Jun. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-1.466	/	( ( (0 + max(0, 0))	+	(4.9 + max(2.135, 0)) )	/	1 )
=	-1.466	/	( ( 0	+	7.035 )	/	1 )
=	-1.466	/	7.035
=	-20.84 %

where Working Capital is:

	Working Capital		(Q: Jun. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0)	-	(0	+	0	+	0)
=	0

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2.182	+	2.053	+	8.8817841970013E-16)	-	(2.1	+	0	+	0)
=	2.135

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2023) EBIT data.

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

ECO Buildings Group's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	-0.089	/	0.027
	=	-329.63 %

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.

ECO Buildings Group Operating Income Related Terms

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ECO Buildings Group (LSE:ECOB) Business Description

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ECOB:UK

Address

160 Camden High Street, London, GBR, NW1 0NE

Website

https://www.eco-buildings.net

ECO Buildings Group Plc will operate in the prefabricated modular housing sector. The company has acquired the proven and innovative prefabricated modular technology using glass fibre-reinforced gypsum (GFRG), an alternative construction method to achieve faster and more economical development of residential, commercial, and industrial dwellings. Eco Buildings' range of modular housing products provides a solution for the construction of both affordable and high-end housing, with Eco Buildings' products being up to 50% cheaper, two-thirds lighter and five times faster to deploy than conventionally built homes.

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