Research Frontiers (Research Frontiers) Operating Income : $-2.03 Mil (TTM As of Dec. 2023)

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What is Research Frontiers Operating Income?

Research Frontiers's Operating Income for the three months ended in Dec. 2023 was $-0.51 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-2.03 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Research Frontiers's Operating Income for the three months ended in Dec. 2023 was $-0.51 Mil. Research Frontiers's Revenue for the three months ended in Dec. 2023 was $0.31 Mil. Therefore, Research Frontiers's Operating Margin % for the quarter that ended in Dec. 2023 was -161.86%.

Warning Sign:

Research Frontiers Inc operating margin has been in a 5-year decline. The average rate of decline per year is -10.5%.

Research Frontiers's 5-Year average Growth Rate for Operating Margin % was -10.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Research Frontiers's annualized ROC % for the quarter that ended in Dec. 2023 was -164.29%. Research Frontiers's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -172.43%.

Research Frontiers Operating Income Historical Data

The historical data trend for Research Frontiers'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.

Research Frontiers Operating Income Chart

Research Frontiers Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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-3.15

-2.58

-1.84

-2.63

-2.03

Research Frontiers Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															-0.82	-0.49	-0.53	-0.51	-0.51

Research Frontiers 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. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-2.03 Mil.

Research Frontiers (NAS:REFR) Operating Income Explanation

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

Research Frontiers's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-2.02 * ( 1 - 0% )	/	( (1.149	+	1.31)	/ 2 )
=	-2.02	/	1.2295
=	-164.29 %

where

	Invested Capital		(Q: Sep. 2023 )
=	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	))
=	4.227	-	0.053	-	( 3.025	-	max(0, 0.264	-	3.91	+	3.025	))
=	1.149

	Invested Capital		(Q: Dec. 2023 )
=	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	))
=	3.851	-	0.065	-	( 2.476	-	max(0, 0.277	-	3.576	+	2.476	))
=	1.31

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

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

Research Frontiers's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-2.02	/	( ( (0.261 + max(0.829, 0))	+	(0.218 + max(1.035, 0)) )	/	2 )
=	-2.02	/	( ( 1.09	+	1.253 )	/	2 )
=	-2.02	/	1.1715
=	-172.43 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.721	+	0	+	0.164)	-	(0.053	+	0.004	+	-0.001)
=	0.829

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.003	+	0	+	0.097)	-	(0.065	+	0	+	0)
=	1.035

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

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

Research Frontiers's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	-0.505	/	0.312
	=	-161.86 %

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.

Research Frontiers Operating Income Related Terms

Thank you for viewing the detailed overview of Research Frontiers's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Research Frontiers (Research Frontiers) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Research Frontiers Inc (NAS:REFR) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

240 Crossways Park Drive, Woodbury, NY, USA, 11797-2033

Website

https://www.smartglass.com

Research Frontiers Inc is engaged in the development and marketing of technology and devices to control the flow of light. The company develops and licenses its patented suspended particle device light-control technology to other companies that manufacture and market the SPD-Smart chemical emulsion, the light-control film made from the chemical emulsion, the light-control panels made by laminating the film, electronics to power end-products incorporating the film, or lamination services for, and the end-products. Its revenue source comes from the licensing of technology.

Executives

Darryl Daigle	director	3213 WYTCHWOOD DRIVE, MORGAN CITY LA 70380
Eyal Peso	director	C/O GAUZY LTD., 14 HATHIYA STREET, TEL AVIV-YAFO L3 6816914
Kevin Douglas	10 percent owner, other: 13(d)(3) group	300A DRAKES LANDING ROAD, SUITE 200, GREENBRAE CA 94904
William Graham Settle	director	6003 COBRIDGE SQUARE, RALEIGH NC 27609
Michael R Lapointe	officer: Vice President-Marketing
Alexander Kaganowicz	director	1217 CARLLS STRAIGHT PATH, DIX HILLS NY 11746
Joseph M Harary	director, officer: Persident and CEO
Grimes George Gregory	director	24 FIFTH AVENUE, APT. 1530, NEW YORK NY 10011
Douglas Family Trust	10 percent owner, other: 13(d)(3) group	300A DRAKES LANDING ROAD, SUITE 200, GREENBRAE CA 94904
James & Jean Douglas Irrevocable Descendants Trust	10 percent owner, other: 13(d)(3) group	300A DRAKES LANDING ROAD, SUITE 200, GREENBRAE CA 94904
Voorhees Seth Van	officer: VicePresident-Business Dev/CFO	12 HARVEY DRIVE, SHORT HILLS NJ 07078
Robert L Saxe	director, officer: Chairman/CTO
Steven Michael Slovak	officer: Vice President-Technology	240 CROSSWAYS PARK DRIVE, WOODBURY NY 11797
Jack Derby	director	399 BOYLSTON STREET, BOSTON MA 02117
Victor F Keen	director	C/O RESEARCH FRONTIERS INC., 240 CROSSWAYS PARK DRIVE, WOODBURY NY 11797