QRS Music Technologies (QRS Music Technologies) Operating Income : $-0.60 Mil (TTM As of Mar. 2007)

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What is QRS Music Technologies Operating Income?

QRS Music Technologies's Operating Income for the three months ended in Mar. 2007 was $-0.34 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2007 was $-0.60 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. QRS Music Technologies's Operating Income for the three months ended in Mar. 2007 was $-0.34 Mil. QRS Music Technologies's Revenue for the three months ended in Mar. 2007 was $3.27 Mil. Therefore, QRS Music Technologies's Operating Margin % for the quarter that ended in Mar. 2007 was -10.26%.

QRS Music Technologies'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. QRS Music Technologies's annualized ROC % for the quarter that ended in Mar. 2007 was -8.53%. QRS Music Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2007 was -14.89%.

QRS Music Technologies Operating Income Historical Data

The historical data trend for QRS Music Technologies'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.

QRS Music Technologies Operating Income Chart

QRS Music Technologies Annual Data

Trend

Jun01

Jun02

Jun03

Jun04

Jun05

Jun06

Operating Income

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1.16

1.45

2.41

1.71

0.40

QRS Music Technologies Quarterly Data
	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07
Operating Income	Get a 7-Day Free Trial															-0.03	-0.23	-0.45	0.42	-0.34

QRS Music Technologies 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. 2007 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.60 Mil.

QRS Music Technologies (OTCPK:QRSM) Operating Income Explanation

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

QRS Music Technologies's annualized ROC % for the quarter that ended in Mar. 2007 is calculated as:

	ROC % (Q: Mar. 2007 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2006 )	+	Invested Capital (Q: Mar. 2007 ))	/ count )
=	-1.344 * ( 1 - 35.53% )	/	( (9.907	+	10.402)	/ 2 )
=	-0.8664768	/	10.1545
=	-8.53 %

where

	Invested Capital		(Q: Dec. 2006 )
=	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	))
=	12.872	-	2.146	-	( 0.819	-	max(0, 2.484	-	10.799	+	0.819	))
=	9.907

	Invested Capital		(Q: Mar. 2007 )
=	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	))
=	12.333	-	1.556	-	( 0.375	-	max(0, 2.06	-	9.912	+	0.375	))
=	10.402

Note: The Operating Income data used here is four times the quarterly (Mar. 2007) data.

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

QRS Music Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2007 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2007 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2006		Q: Mar. 2007
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-1.344	/	( ( (1.174 + max(7.834, 0))	+	(1.278 + max(7.77, 0)) )	/	2 )
=	-1.344	/	( ( 9.008	+	9.048 )	/	2 )
=	-1.344	/	9.028
=	-14.89 %

where Working Capital is:

	Working Capital		(Q: Dec. 2006 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.192	+	7.711	+	1.077)	-	(2.146	+	0	+	0)
=	7.834

	Working Capital		(Q: Mar. 2007 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.712	+	7.626	+	0.988)	-	(1.556	+	0	+	0)
=	7.77

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2007) EBIT data.

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

QRS Music Technologies's Operating Margin % for the quarter that ended in Mar. 2007 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2007 )	/	Revenue (Q: Mar. 2007 )
	=	-0.336	/	3.274
	=	-10.26 %

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.

QRS Music Technologies Operating Income Related Terms

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QRS Music Technologies (QRS Music Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » QRS Music Technologies Inc (OTCPK:QRSM) » Definitions » Operating Income

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Traded in Other Exchanges

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Address

269 Quaker Drive, Seneca, PA, USA, 16346

Website

https://www.qrsmusic.com

QRS Music Technologies Inc manufactures and distributes pianos, pianomation units and compact discs and music rolls for use in player pianos. The firm has a presence in Buffalo, New York and Seneca, Pennsylvania within the United States and internationally in Belmain NSW, Australia. It also operates a sales and procurement office in Hong Kong, China.

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