Rocky Mountain High Brands (Rocky Mountain High Brands) Operating Income : $-4.33 Mil (TTM As of Jun. 2020)

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What is Rocky Mountain High Brands Operating Income?

Rocky Mountain High Brands's Operating Income for the three months ended in Jun. 2020 was $-1.35 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2020 was $-4.33 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Rocky Mountain High Brands's Operating Income for the three months ended in Jun. 2020 was $-1.35 Mil. Rocky Mountain High Brands's Revenue for the three months ended in Jun. 2020 was $0.67 Mil. Therefore, Rocky Mountain High Brands's Operating Margin % for the quarter that ended in Jun. 2020 was -201.05%.

Rocky Mountain High Brands'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. Rocky Mountain High Brands's annualized ROC % for the quarter that ended in Jun. 2020 was -129.90%. Rocky Mountain High Brands's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2020 was -506.18%.

Rocky Mountain High Brands Operating Income Historical Data

The historical data trend for Rocky Mountain High Brands'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.

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Rocky Mountain High Brands Operating Income Chart

Rocky Mountain High Brands Annual Data

Trend

Dec09

Jun10

Jun11

Jun12

Jun16

Jun17

Dec18

Dec19

Operating Income

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-0.68

-3.54

-4.56

-4.28

Rocky Mountain High Brands Quarterly Data
	Dec09	Jun10	Dec10	Jun11	Jun12	Jun16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20
Operating Income	Get a 7-Day Free Trial															-0.86	-0.83	-1.43	-0.73	-1.35

Rocky Mountain High Brands 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 Jun. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $-4.33 Mil.

Rocky Mountain High Brands (OTCPK:RMHB) Operating Income Explanation

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

Rocky Mountain High Brands's annualized ROC % for the quarter that ended in Jun. 2020 is calculated as:

	ROC % (Q: Jun. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2020 )	+	Invested Capital (Q: Jun. 2020 ))	/ count )
=	-5.38 * ( 1 - 0% )	/	( (2.293	+	5.99)	/ 2 )
=	-5.38	/	4.1415
=	-129.90 %

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	))
=	0.541	-	1.366	-	( 0.096	-	max(0, 3.609	-	0.491	+	0.096	))
=	2.293

	Invested Capital		(Q: Jun. 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	))
=	4.844	-	4.382	-	( 0.032	-	max(0, 6.816	-	1.288	+	0.032	))
=	5.99

Note: The Operating Income data used here is four times the quarterly (Jun. 2020) data.

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

Rocky Mountain High Brands's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2020 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2020 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2020		Q: Jun. 2020
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-5.444	/	( ( (0.015 + max(-2.168, 0))	+	(2.136 + max(-4.409, 0)) )	/	2 )
=	-5.444	/	( ( 0.015	+	2.136 )	/	2 )
=	-5.444	/	1.0755
=	-506.18 %

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)
=	(0.007	+	0.222	+	0.166)	-	(1.366	+	0.463	+	0.734)
=	-2.168

	Working Capital		(Q: Jun. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0.15	+	1.106)	-	(4.382	+	0.511	+	0.772)
=	-4.409

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2020) EBIT data.

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

Rocky Mountain High Brands's Operating Margin % for the quarter that ended in Jun. 2020 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2020 )	/	Revenue (Q: Jun. 2020 )
	=	-1.345	/	0.669
	=	-201.05 %

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.

Rocky Mountain High Brands Operating Income Related Terms

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

Rocky Mountain High Brands (Rocky Mountain High Brands) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » Rocky Mountain High Brands Inc (OTCPK:RMHB) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

1000 Shiloh Road, Suite 200, Plano, TX, USA, 75074

Website

https://www.rockymountainhighbrands.com

Rocky Mountain High Brands Inc is a brand management company. RMHB specializes in developing, manufacturing, marketing, and distributing high-quality, health-conscious, cannabidiol and hemp-infused products that span various categories including beverage, food, fitness, skincare, and more. It also markets a naturally high alkaline spring water as part of the company's brand portfolio.

Executives

Winton Morrison	director	9101 LBJ FREEWAY, SUITE 200 DALLAS TX 75243
Jens R. Mielke	officer: Chief Financial Officer	9101 LBJ FREEWAY, SUITE 200 DALLAS TX 75243
Michael R. Welch	director, officer: President and CEO	9101 LBJ FREEWAY, SUITE 200 DALLAS TX 75243
Charles Walter Smith	director, officer: Chief Operating Officer	9101 LBJ FREEWAY, SUITE 200 DALLAS TX 75243
David M. Seeberger	director, officer: Vice President	9101 LBJ FREEWAY, SUITE 200 DALLAS TX 75243
Kevin Harrington	director	14044 ICOT BLVD., CLEARWATER FL 33760
Gerard Vincent David	director, officer: Chairman of the Board	3615 5TH AVENUE NE BRADENTON FL 34208
Jerome A. Grisaffi	director, officer: Secretary and Chairman	9101 LBJ FREEWAY, SUITE 200 DALLAS TX 75243
Lily Li	10 percent owner, officer: Executive Vice President	4858 ROUTE 32 CATSKILL NY 12414