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Network CN (Network CN) Operating Income : $-1.02 Mil (TTM As of Mar. 2024)


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What is Network CN Operating Income?

Network CN's Operating Income for the three months ended in Mar. 2024 was $-0.25 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $-1.02 Mil.

Warning Sign:

Network CN Inc has never been profitable in the past 3 years. It lost money every year.

Operating Margin % is calculated as Operating Income divided by its Revenue. Network CN's Operating Income for the three months ended in Mar. 2024 was $-0.25 Mil. Network CN's Revenue for the three months ended in Mar. 2024 was $0.22 Mil. Therefore, Network CN's Operating Margin % for the quarter that ended in Mar. 2024 was -113.82%.

Network CN'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. Network CN's annualized ROC % for the quarter that ended in Mar. 2024 was -19.79%. Network CN's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -2,744.44%.


Network CN Operating Income Historical Data

The historical data trend for Network CN'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.

Network CN Operating Income Chart

Network CN Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.32 -0.29 -0.70 -0.63 -1.14

Network CN 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 -0.37 -0.30 -0.29 -0.19 -0.25

Network CN 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 $-1.02 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.


Network CN  (OTCPK:NWCN) Operating Income Explanation

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

Network CN'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 )
=-0.988 * ( 1 - 0% )/( (4.621 + 5.363)/ 2 )
=-0.988/4.992
=-19.79 %

where

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

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

Network CN'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 )
=-0.988/( ( (0.04 + max(-3.426, 0)) + (0.032 + max(-3.616, 0)) )/ 2 )
=-0.988/( ( 0.04 + 0.032 )/ 2 )
=-0.988/0.036
=-2,744.44 %

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)
=(0.177 + 0 + 0.004) - (1.086 + 0.001 + 2.52)
=-3.426

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.014 + 0 + 0.001) - (1.025 + 0.025 + 2.581)
=-3.616

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 %:

Network CN'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 )
=-0.247/0.217
=-113.82 %

* 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.


Network CN Operating Income Related Terms

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Network CN (Network CN) Business Description

Traded in Other Exchanges
N/A
Address
Unit 705B, 9 Science Museum Road, New East Ocean Centre, 7th Floor, Tsim Sha Tsui, Kowloon, Hong Kong, HKG
Network CN Inc is a media and advertising company. The company is engaged in the provision of out-of-home advertising services in China. Its suite of services ranges from media planning to advertise operations such as a network of roadside light-emitting diode (LED) digital video panels, mega-size LED digital video billboards, and lightboxes in many cities. Its revenues consist of income from out-of-home advertising panels. The company generates majority of its revenue from United States.
Executives
Frederick Wong director C/O 21/F, ONE HARBOUR SQUARE, 181 HOI BUN RD, KWUN TONG, HONG KONG F4 00000
Wing Kong Wong director C/O 21/F, ONE HARBOUR SQUARE, 181 HOI BUN RD, KWUN TONG, HONG KONG F4 00000
Cheng Sze Ki Shirley director, officer: Chief Financial Officer C/O 21/F, ONE HARBOUR SQUARE, 181 HOI BUN RD, KWUN TONG, HONG KONG F4 00000
Charles Liu director C/O NO. SUITE 3908, SHELL TOWER, TIMES SQUARE, 1 MATHESON STREET, CAUSEWAY BAY, HK K3 00000
Serge Choukroun director C/O STE 3908, SHELL TOWER, TIMES SQUARE, 1 MATHESON STREET, CAUSEWAY BAY, HONG KONG K3 00000
Sino Portfolio International Ltd 10 percent owner 3104 -7, 31/F, CENTRAL PLAZA, 18 HARBOUR ROAD, HONG KONG K3 00000
Chen Yang Foo Oi 10 percent owner 3104 -7, 31/F, CENTRAL PLAZA, 18 HARBOUR ROAD, HONG KONG K3 00000
Jennifer Fu officer: Interim CFO 21/F., CHINACHEM CENTURY TOWER, 178 GLOUCESTER ROAD, WANCHAI K3 00000
Gerald Godfrey director 21/F., CHINACHEM CENTURY TOWER,, 178 GLOUCESTER ROAD, WANCHAI K3 00000
Ronald Lee director C/O NO. 21/F., CHINACHEM CENTURY TOWER, 178 GLOUCESTER ROAD, WANCHAI K3 00000
Chi Wah Leung director FLAT 2B, OLYMPAIN MANSION, 9 CONDUIT ROAD, MID-LEVEL K3 00000
Keywin Holdings Ltd 10 percent owner RM902, 9/FL., UNIVERSAL TRADE CENTRE,, 3 ARBUTHNOT ROAD, CENTRAL K3 00000
Tang Pui Chu 10 percent owner FLAT 2B,OLYMPAIN MANSION, 9 CONDUIT ROAD, MID-LEVEL K3 00000
Gerd Jakob director 21/F CHINACHEM CENTURY TOWER, 178 GLOUCESTER ROAD, HONG KONG F4 0000000
Ronglie Xu director 1-1-301, HOUSING YARD, MINISTRY OF CONSTRUCTION, BEIJING F4 100037

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