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Remote Dynamics (Remote Dynamics) Operating Income : $-0.88 Mil (TTM As of Sep. 2009)


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What is Remote Dynamics Operating Income?

Remote Dynamics's Operating Income for the three months ended in Sep. 2009 was $-0.36 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2009 was $-0.88 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Remote Dynamics's Operating Income for the three months ended in Sep. 2009 was $-0.36 Mil. Remote Dynamics's Revenue for the three months ended in Sep. 2009 was $1.29 Mil. Therefore, Remote Dynamics's Operating Margin % for the quarter that ended in Sep. 2009 was -27.85%.

Remote Dynamics'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. Remote Dynamics's annualized ROC % for the quarter that ended in Sep. 2009 was -11.32%. Remote Dynamics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2009 was -1,884.21%.


Remote Dynamics Operating Income Historical Data

The historical data trend for Remote Dynamics'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.

Remote Dynamics Operating Income Chart

Remote Dynamics Annual Data
Trend Dec99 Dec00 Dec01 Aug02 Aug03 Aug04 Aug05 Aug06 Dec07 Dec08
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.27 -15.20 -16.07 -1.25 -0.62

Remote Dynamics Quarterly Data
Nov04 Feb05 May05 Aug05 Nov05 Feb06 May06 Aug06 Nov06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09
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 -0.08 -0.11 -0.22 -0.19 -0.36

Remote Dynamics 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 Sep. 2009 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.88 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.


Remote Dynamics  (OTCPK:RMTD) Operating Income Explanation

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

Remote Dynamics's annualized ROC % for the quarter that ended in Sep. 2009 is calculated as:

ROC % (Q: Sep. 2009 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2009 ) + Invested Capital (Q: Sep. 2009 ))/ count )
=-1.436 * ( 1 - 0% )/( (12.726 + 12.636)/ 2 )
=-1.436/12.681
=-11.32 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2009) data.

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

Remote Dynamics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2009 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2009 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2009  Q: Sep. 2009
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-1.432/( ( (0.083 + max(-3.686, 0)) + (0.069 + max(-3.64, 0)) )/ 2 )
=-1.432/( ( 0.083 + 0.069 )/ 2 )
=-1.432/0.076
=-1,884.21 %

where Working Capital is:

Working Capital(Q: Jun. 2009 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.609 + 0.205 + 0.54) - (4.133 + 0.907 + 1.7763568394003E-15)
=-3.686

Working Capital(Q: Sep. 2009 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.636 + 0.148 + 0.512) - (4.063 + 0.873 + 0)
=-3.64

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2009) EBIT data.

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

Remote Dynamics's Operating Margin % for the quarter that ended in Sep. 2009 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2009 )/Revenue (Q: Sep. 2009 )
=-0.359/1.289
=-27.85 %

* 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.


Remote Dynamics Operating Income Related Terms

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Remote Dynamics (Remote Dynamics) Business Description

Traded in Other Exchanges
N/A
Address
200 Chisholm Place, Suite 120, Plano, TX, USA, 75075
Remote Dynamics Inc markets, sells and supports automatic vehicle location and mobile resource management solutions targeting companies that own and operate private vehicle fleets, construction equipment, unpowered assets and others.
Executives
Miller Lloyd I Iii other: Former 10% Owner
Alan B Howe director 1155 KAS DRIVE SUITE 100, RICHARDSON TX 75081

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