RYMM (Royal Mines & Minerals) Operating Income: $-0.56 Mil (TTM As of Jul. 2017)

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What is Royal Mines & Minerals Operating Income?

Royal Mines & Minerals RYMM -99.50% Operating Income is $-0.56 Mil as of Jul. 2017.

Royal Mines & Minerals's Operating Income for the three months ended in Jul. 2017 was $-0.12 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2017 was $-0.56 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Royal Mines & Minerals's Operating Income for the three months ended in Jul. 2017 was $-0.12 Mil. Royal Mines & Minerals's Revenue for the three months ended in Jul. 2017 was $0.00 Mil. Therefore, Royal Mines & Minerals's Operating Margin % for the quarter that ended in Jul. 2017 was %.

Royal Mines & Minerals'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. Royal Mines & Minerals's annualized ROC % for the quarter that ended in Jul. 2017 was -92.28%. Royal Mines & Minerals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2017 was -982.18%.

Royal Mines & Minerals  (OTCPK:RYMM) Operating Income Explanation

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

Royal Mines & Minerals's annualized ROC % for the quarter that ended in Jul. 2017 is calculated as:

ROC % (Q: Jul. 2017 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Apr. 2017 ) + Invested Capital (Q: Jul. 2017 ))/ count )
=-0.496 * ( 1 - 0% )/( (0.497 + 0.578)/ 2 )
=-0.496/0.5375
=-92.28 %

where

Invested Capital(Q: Apr. 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))
=0.079 - 1.204 - ( 0.012 - max(0, 1.64 - 0.018+0.012))
=0.497

Invested Capital(Q: Jul. 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))
=0.059 - 1.262 - ( 0.003 - max(0, 1.784 - 0.003+0.003))
=0.578

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

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

Royal Mines & Minerals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2017 is calculated as:

ROC (Joel Greenblatt) %(Q: Jul. 2017 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Apr. 2017  Q: Jul. 2017
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-0.496/( ( (0.053 + max(-1.198, 0)) + (0.048 + max(-1.262, 0)) )/ 2 )
=-0.496/( ( 0.053 + 0.048 )/ 2 )
=-0.496/0.0505
=-982.18 %

where Working Capital is:

Working Capital(Q: Apr. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0.006) - (1.204 + 0 + 0)
=-1.198

Working Capital(Q: Jul. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0) - (1.262 + 0 + 0)
=-1.262

When net working capital is negative, 0 is used.

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

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

Royal Mines & Minerals's Operating Margin % for the quarter that ended in Jul. 2017 is calculated as:

Operating Margin %=Operating Income (Q: Jul. 2017 )/Revenue (Q: Jul. 2017 )
=-0.124/0
= %

* 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.

Royal Mines & Minerals Operating Income Related Terms

Royal Mines & Minerals Operating Income Historical Data

* Premium members only.

The historical data trend for Royal Mines & Minerals'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.

Royal Mines & Minerals Operating Income Chart

Royal Mines & Minerals Annual Data
Trend Apr08 Apr09 Apr10 Apr11 Apr12 Apr13 Apr14 Apr15 Apr16 Apr17
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.04 -1.36 -1.03 -0.69 -0.60

Royal Mines & Minerals Quarterly Data
Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 -0.16 -0.15 -0.14 -0.15 -0.12

Royal Mines & Minerals 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 Jul. 2017 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.56 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $-0.56 Mil mean?
Royal Mines & Minerals (RYMM) has a Operating Income of $-0.56 Mil as of Jul. 2017. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Royal Mines & Minerals and its competitors.
Is Royal Mines & Minerals' Operating Income too high?
Royal Mines & Minerals' current Operating Income is $-0.56 Mil.
How does Royal Mines & Minerals' Operating Income compare to competitors?
Royal Mines & Minerals' Operating Income of $-0.56 Mil can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Metals & Mining company?
A good Operating Income depends on the Metals & Mining industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Royal Mines & Minerals and its competitors. Royal Mines & Minerals's current Operating Income is $-0.56 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Mines & Minerals stock overvalued right now?
Royal Mines & Minerals (RYMM) has a current Operating Income of $-0.56 Mil. The current Operating Income is $-0.56 Mil. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Royal Mines & Minerals (RYMM), the current Operating Income is $-0.56 Mil as of Jul. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Royal Mines & Minerals Business Description

Address 1080 Wigwam Parkway, Henderson, NV, USA, 89072
Royal Mines & Minerals Corp is involved in the business of the development of mining technologies for the extraction of precious metals. Its main objectives are to extract and refine precious metals from coal ash, ores, and other leachable assets, use its proprietary processes to create assets and joint venture, acquire and develop mining projects in North America.