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REAC Group (REAC Group) Operating Income : $-4.11 Mil (TTM As of Dec. 2019)


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What is REAC Group Operating Income?

REAC Group's Operating Income for the three months ended in Dec. 2019 was $-0.87 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2019 was $-4.11 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. REAC Group's Operating Income for the three months ended in Dec. 2019 was $-0.87 Mil. REAC Group's Revenue for the three months ended in Dec. 2019 was $0.00 Mil. Therefore, REAC Group's Operating Margin % for the quarter that ended in Dec. 2019 was %.

REAC 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. REAC Group's annualized ROC % for the quarter that ended in Dec. 2019 was -895.51%. REAC Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 was %.


REAC Group Operating Income Historical Data

The historical data trend for REAC 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.

REAC Group Operating Income Chart

REAC Group Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.16 -5.19 -1.24 -0.51 -4.11

REAC Group Quarterly Data
Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19
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 -0.04 -3.15 -0.04 -0.05 -0.87

REAC 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 Dec. 2019 adds up the quarterly data reported by the company within the most recent 12 months, which was $-4.11 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.


REAC Group  (OTCPK:REAC) Operating Income Explanation

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

REAC Group's annualized ROC % for the quarter that ended in Dec. 2019 is calculated as:

ROC % (Q: Dec. 2019 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2019 ) + Invested Capital (Q: Dec. 2019 ))/ count )
=-3.488 * ( 1 - 0% )/( (0.273 + 0.506)/ 2 )
=-3.488/0.3895
=-895.51 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2019) data.

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

REAC Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2019 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2019  Q: Dec. 2019
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-3.488/( ( (0 + max(-1.12, 0)) + (0 + max(-1.237, 0)) )/ 1 )
=-3.488/( ( 0 + 0 )/ 1 )
=-3.488/0
= %

where Working Capital is:

Working Capital(Q: Sep. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0) - (1.12 + 0 + -2.2204460492503E-16)
=-1.12

Working Capital(Q: Dec. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0) - (1.237 + 0 + 0)
=-1.237

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2019) EBIT data.

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

REAC Group's Operating Margin % for the quarter that ended in Dec. 2019 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2019 )/Revenue (Q: Dec. 2019 )
=-0.872/0
= %

* 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.


REAC Group Operating Income Related Terms

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REAC Group (REAC Group) Business Description

Traded in Other Exchanges
N/A
Address
74th Street UNIT 1, 3400 North-West, Miami, FL, USA, 33122
REAC Group Inc owns and operates the real estate advertising portal website. The company provides an online website that serves as an internet portal that features a real estate search engine and a media network that directs consumers to receive detailed information about agents, offices, and current listings, homes for sale, commercial properties, mortgages, and foreclosures. It provides a service that enables real estate professionals to grow their businesses online.
Executives
Robert Deangelis director, 10 percent owner, officer: President,Secretary,Treasurer 8878 COVENANT AVENUE NO. 209 PITTSBURGH PA 15237
Baker Myers & Associates, Llc 10 percent owner 4124 FRANKLIN ROAD NASHVILLE TN 37204
Ivan Baca 10 percent owner 2885 E. MIDWAY BLVD., NO. 432 BROOMFIELD CO 80234
Eric Daniel Strom 10 percent owner 110 APACHE PLUME ST. BRIGHTON CO 80601

REAC Group (REAC Group) Headlines

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