Ruby Tuesday (Ruby Tuesday) Operating Income : $-76.3 Mil (TTM As of Aug. 2017)

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What is Ruby Tuesday Operating Income?

Ruby Tuesday's Operating Income for the three months ended in Aug. 2017 was $-9.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2017 was $-76.3 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ruby Tuesday's Operating Income for the three months ended in Aug. 2017 was $-9.8 Mil. Ruby Tuesday's Revenue for the three months ended in Aug. 2017 was $217.3 Mil. Therefore, Ruby Tuesday's Operating Margin % for the quarter that ended in Aug. 2017 was -4.51%.

Ruby Tuesday'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. Ruby Tuesday's annualized ROC % for the quarter that ended in Aug. 2017 was -6.24%. Ruby Tuesday's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2017 was -6.81%.

Ruby Tuesday Operating Income Historical Data

The historical data trend for Ruby Tuesday'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.

Ruby Tuesday Operating Income Chart

Ruby Tuesday Annual Data

Trend

May08

May09

May10

May11

May12

May13

May14

May15

May16

May17

Operating Income

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-21.93

-69.58

-5.11

-52.86

-107.86

Ruby Tuesday Quarterly Data
	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17
Operating Income	Get a 7-Day Free Trial															-41.39	-37.92	-19.89	-8.66	-9.80

Ruby Tuesday 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 Aug. 2017 adds up the quarterly data reported by the company within the most recent 12 months, which was $-76.3 Mil.

Ruby Tuesday (NYSE:RT) Operating Income Explanation

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

Ruby Tuesday's annualized ROC % for the quarter that ended in Aug. 2017 is calculated as:

	ROC % (Q: Aug. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2017 )	+	Invested Capital (Q: Aug. 2017 ))	/ count )
=	-39.18 * ( 1 - -0.52% )	/	( (640.024	+	622.744)	/ 2 )
=	-39.383736	/	631.384
=	-6.24 %

where

	Invested Capital		(Q: May. 2017 )
=	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	))
=	723.642	-	83.655	-	( 41.714	-	max(0, 99.074	-	99.037	+	41.714	))
=	640.024

	Invested Capital		(Q: Aug. 2017 )
=	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	))
=	701.022	-	71.73	-	( 48.068	-	max(0, 86.039	-	92.587	+	48.068	))
=	622.744

Note: The Operating Income data used here is four times the quarterly (Aug. 2017) data.

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

Ruby Tuesday's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2017 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Aug. 2017 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: May. 2017		Q: Aug. 2017
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-39.18	/	( ( (583.097 + max(-50.728, 0))	+	(567.114 + max(-50.158, 0)) )	/	2 )
=	-39.18	/	( ( 583.097	+	567.114 )	/	2 )
=	-39.18	/	575.1055
=	-6.81 %

where Working Capital is:

	Working Capital		(Q: May. 2017 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.031	+	17.178	+	29.769)	-	(83.655	+	15.051	+	0)
=	-50.728

	Working Capital		(Q: Aug. 2017 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	16.19	+	19.312)	-	(71.73	+	13.93	+	-1.4210854715202E-14)
=	-50.158

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Aug. 2017) EBIT data.

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

Ruby Tuesday's Operating Margin % for the quarter that ended in Aug. 2017 is calculated as:

Operating Margin %	=	Operating Income (Q: Aug. 2017 )	/	Revenue (Q: Aug. 2017 )
	=	-9.795	/	217.307
	=	-4.51 %

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.

Ruby Tuesday Operating Income Related Terms

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Ruby Tuesday (Ruby Tuesday) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Ruby Tuesday Inc (NYSE:RT) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.rubytuesday.com

Ruby Tuesday Inc was incorporated in the state of Georgia. The first Ruby Tuesday(r) restaurant was opened in 1972 in Knoxville, Tennessee near the campus of the University of Tennessee. The Company owns, operates and franchises the Ruby Tuesday casual dining restaurant chain. The Company is subject to a variety of federal, state, and international laws governing franchise sales and the franchise relationship.

Executives

Rhonda J Parish	officer: See Remarks	203 EAST MAINST P 12-02, SPARTANBURG SC 29319
Bernard Jr Lanigan	director	150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Cardwell F Lane Jr	director	C/O RUBY TUESDAY, INC., 150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Stephen I Sadove	director
James J Buettgen	director, officer: President & Chief Exec Officer	150 WEST CHURCH AVE, MARYVILLE TN 37801
Jill Golder	officer: EVP, Chief Financial Officer	305 HARTMANN DRIVE, LEBANON TN 37087
Scarlett May	officer: SVP,Chief Legal Officer & Sec.	26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Todd Burrowes	officer: RT Concept Pres,Chief Ops Ofcr	150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Matthew A Drapkin	director	10 CORBIN DRIVE, 3RD FLOOR, DARIEN CT 06820
Michael O Moore	officer: EVP - Chief Financial Officer	150 W CHURCH AVE, RUBY TUESDAY, INC., MARYVILLE TN 37801
Kimberly Grant	officer: Pres.,Ruby Tuesday Concept	150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Steven R Becker	director	5525 NAKOMA DRIVE, DALLAS TX 75209
Beall Samuel E Iii	director, officer: Chief Executive Officer	RUBY TUESDAY INC 150 WEST CHURCH AVE MARYVILLE TN 37801
Donald R Ratajczak	director	THE HARTSFIELD COLONNADE, 4893 RIVERDALE RD STE 260, ATLANTA GA 30337
Haslam James A Iii	director	165 MADISON AVENUE, MEMPHIS TN 38103