OTG (Otg Exp) Operating Income: $ Mil (TTM As of Dec. 2014)

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What is Otg Exp Operating Income?

Otg Exp OTG Operating Income is $ Mil as of Dec. 2014.

Otg Exp's Operating Income for the six months ended in Dec. 2014 was $-6.18 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Otg Exp's Operating Income for the six months ended in Dec. 2014 was $-6.18 Mil. Otg Exp's Revenue for the six months ended in Dec. 2014 was $273.60 Mil. Therefore, Otg Exp's Operating Margin % for the quarter that ended in Dec. 2014 was -2.26%.

Otg Exp'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. Otg Exp's annualized ROC % for the quarter that ended in Dec. 2014 was -3.09%. Otg Exp's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2014 was -3.58%.

Otg Exp  (NAS:OTG) Operating Income Explanation

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

Otg Exp's annualized ROC % for the quarter that ended in Dec. 2014 is calculated as:

ROC % (Q: Dec. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2013 ) + Invested Capital (Q: Dec. 2014 ))/ count )
=-6.183 * ( 1 - 0% )/( (171.92 + 227.876)/ 2 )
=-6.183/199.898
=-3.09 %

where

Invested Capital(Q: Dec. 2013 )
=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))
=182.832 - 40.331 - ( 3.481 - max(0, 40.604 - 11.185+3.481))
=171.92

Invested Capital(Q: Dec. 2014 )
=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))
=276.452 - 44.634 - ( 42.334 - max(0, 48.391 - 52.333+42.334))
=227.876

Note: The Operating Income data used here is one times the annual (Dec. 2014) data.

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

Otg Exp's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2014 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2014 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2013  Q: Dec. 2014
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-6.183/( ( (153.488 + max(-33.169, 0)) + (191.485 + max(-35.358, 0)) )/ 2 )
=-6.183/( ( 153.488 + 191.485 )/ 2 )
=-6.183/172.4865
=-3.58 %

where Working Capital is:

Working Capital(Q: Dec. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.477 + 3.762 + 2.923) - (40.331 + 0 + -7.105427357601E-15)
=-33.169

Working Capital(Q: Dec. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.739 + 5.741 + 2.796) - (44.634 + 0 + 0)
=-35.358

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Dec. 2014) EBIT data.

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

Otg Exp's Operating Margin % for the quarter that ended in Dec. 2014 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2014 )/Revenue (Q: Dec. 2014 )
=-6.183/273.603
=-2.26 %

* 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.

Otg Exp Operating Income Related Terms

Otg Exp Operating Income Historical Data

* Premium members only.

The historical data trend for Otg Exp'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.

Otg Exp Operating Income Chart

Otg Exp Annual Data
Trend Dec13 Dec14
Operating Income
-5.91 -6.18

Otg Exp Semi-Annual Data
Dec13 Dec14
Operating Income -5.91 -6.18

Otg Exp 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.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Dec. 2014 was $ 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 $ Mil mean?
Otg Exp (OTG) has a Operating Income of $ Mil as of Dec. 2014. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Otg Exp and its competitors.
Is Otg Exp's Operating Income too high?
Otg Exp's current Operating Income is $ Mil.
How does Otg Exp's Operating Income compare to IRGTQ and CDIF?
Otg Exp's Operating Income of $ Mil can be compared against companies in the Restaurants 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 Restaurants company?
A good Operating Income depends on the Restaurants 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 Otg Exp and its competitors. Otg Exp's current Operating Income is $ Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otg Exp stock overvalued right now?
Otg Exp (OTG) has a current Operating Income of $ Mil. The current Operating Income is $ 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 Otg Exp (OTG), the current Operating Income is $ Mil as of Dec. 2014. 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.

Otg Exp Business Description

Otg Exp Inc was incorporated on October 27, 2015 in Delaware. It is a travel restaurateur with operations in North America with more than 220 locations in 23 terminals across 10 airports. The Company designs, develops, operates and manages the terminal concessions programs, which refers to the programs where it either operates all of the F&B concessions or F&B and N&G concessions or have management authority over the concession program or terminal. The Company operates in the United States and Canada. It has relationships with manufacturers that deliver products directly to its concession locations. OTG's customers are comprised of two distinct groups. The first group includes airlines, such as United, Delta and JetBlue, airport operators and concession program managers. The other commercial enterprises include car rental companies, hotel chains and online shopping sites. The second group consists of the airport users, which include passengers, airline and airport employees. It competes with concession program companies, such as HMSHost Corporation, SSP Group and Hudson Group, as well as other regional and local concessionaires. The Company is subject to federal, state and local government regulations, including those relating to, among others, public health and safety, zoning and fire codes. Failure to obtain or retain food service, health permit or other licenses and approvals would adversely affect its operations.