Next Digital (Next Digital) Operating Income : $-21.15 Mil (TTM As of Sep. 2020)

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What is Next Digital Operating Income?

Next Digital's Operating Income for the six months ended in Sep. 2020 was $-16.15 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2020 was $-21.15 Mil.

Warning Sign:

Next Digital Ltd has neven been profitable for the past 3 years. It lost money every year.

Operating Margin % is calculated as Operating Income divided by its Revenue. Next Digital's Operating Income for the six months ended in Sep. 2020 was $-16.15 Mil. Next Digital's Revenue for the six months ended in Sep. 2020 was $73.48 Mil. Therefore, Next Digital's Operating Margin % for the quarter that ended in Sep. 2020 was -21.97%.

Next Digital'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. Next Digital's annualized ROC % for the quarter that ended in Sep. 2020 was -11.73%. Next Digital's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2020 was -29.88%.

Next Digital Operating Income Historical Data

The historical data trend for Next Digital'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.

Next Digital Operating Income Chart

Next Digital Annual Data

Trend

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Operating Income

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16.01

-4.75

-24.17

-36.84

-43.88

Next Digital Semi-Annual Data
	Mar11	Sep11	Mar12	Sep12	Mar13	Sep13	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20
Operating Income	Get a 7-Day Free Trial															-23.46	-13.41	-38.53	-5.00	-16.15

Next Digital 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 Sep. 2020 adds up the semi-annually data reported by the company within the most recent 12 months, which was $-21.15 Mil.

Next Digital (GREY:NXMDF) Operating Income Explanation

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

Next Digital's annualized ROC % for the quarter that ended in Sep. 2020 is calculated as:

	ROC % (Q: Sep. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2020 )	+	Invested Capital (Q: Sep. 2020 ))	/ count )
=	-32.294 * ( 1 - -0.82% )	/	( (272.365	+	282.837)	/ 2 )
=	-32.5588108	/	277.601
=	-11.73 %

where

	Invested Capital		(Q: Mar. 2020 )
=	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	))
=	254.593	-	9.537	-	( 17.732	-	max(0, 84.064	-	56.755	+	17.732	))
=	272.365

	Invested Capital		(Q: Sep. 2020 )
=	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	))
=	259.592	-	9.697	-	( 24.6	-	max(0, 94.637	-	61.695	+	24.6	))
=	282.837

Note: The Operating Income data used here is two times the semi-annual (Sep. 2020) data.

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

Next Digital's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2020 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2020 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2020		Q: Sep. 2020
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-33.78	/	( ( (113.094 + max(-23.355, 0))	+	(112.989 + max(-34.932, 0)) )	/	2 )
=	-33.78	/	( ( 113.094	+	112.989 )	/	2 )
=	-33.78	/	113.0415
=	-29.88 %

where Working Capital is:

	Working Capital		(Q: Mar. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(16.845	+	6.255	+	15.923)	-	(9.537	+	0	+	52.841)
=	-23.355

	Working Capital		(Q: Sep. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(16.572	+	6.374	+	14.149)	-	(9.697	+	0	+	62.33)
=	-34.932

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2020) EBIT data.

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

Next Digital's Operating Margin % for the quarter that ended in Sep. 2020 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2020 )	/	Revenue (Q: Sep. 2020 )
	=	-16.147	/	73.48
	=	-21.97 %

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.

Next Digital Operating Income Related Terms

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Next Digital (Next Digital) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Next Digital Ltd (GREY:NXMDF) » Definitions » Operating Income

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Address

8 Chun Ying Street, 1st Floor, Tseung Kwan O Industrial Estate, New Territories, Tseung Kwan O, Hong Kong, HKG

Website

http://www.nextdigital.com.hk

Next Digital Ltd is engaged in the print media business. Business activity of the firm is operated by the Digital Businesses and Print Business segment. The Digital Business segment includes Internet advertising, Internet subscription, content provision, and the development of mobile games and apps. The Print Business segment which derives majority revenue relates to the sale of newspapers, books and magazines and provision of newspapers, books and magazines printing and advertising services. Geographically, it operates in Hong Kong, Taiwan, and Other countries out of which Hong Kong accounts for the majority revenue.

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