SCOO (School Specialty) Operating Income: $-10.3 Mil (TTM As of Dec. 2019)

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SCOO School Specialty Inc SCOO
12 GF Score
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What is School Specialty Operating Income?

School Specialty SCOO 12 Operating Income is $-10.3 Mil as of Dec. 2019. GuruFocus rates SCOO with a GF Score™ of 12/100.

School Specialty's Operating Income for the three months ended in Dec. 2019 was $-21.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2019 was $-10.3 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. School Specialty's Operating Income for the three months ended in Dec. 2019 was $-21.0 Mil. School Specialty's Revenue for the three months ended in Dec. 2019 was $91.0 Mil. Therefore, School Specialty's Operating Margin % for the quarter that ended in Dec. 2019 was -23.02%.

School Specialty'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. School Specialty's annualized ROC % for the quarter that ended in Dec. 2019 was -29.42%. School Specialty's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 was -72.60%.


School Specialty  (OTCPK:SCOO) Operating Income Explanation

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

School Specialty's annualized ROC % for the quarter that ended in Dec. 2019 is calculated as:

ROC % (Q: Dec. 2019 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2019 ) + Invested Capital (Q: Dec. 2019 ))/ count )
=-83.82 * ( 1 - 3.28% )/( (303.939 + 247.151)/ 2 )
=-81.070704/275.545
=-29.42 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2019) data.

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

School Specialty's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2019 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2019  Q: Dec. 2019
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-128.916/( ( (40.772 + max(176.446, 0)) + (42.197 + max(95.721, 0)) )/ 2 )
=-128.916/( ( 217.218 + 137.918 )/ 2 )
=-128.916/177.568
=-72.60 %

where Working Capital is:

Working Capital(Q: Sep. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(162.127 + 81.974 + 18.802) - (71.712 + 7.589 + 7.156)
=176.446

Working Capital(Q: Dec. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(61.718 + 71.424 + 17.956) - (39.442 + 7.006 + 8.929)
=95.721

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2019) EBIT data.

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

School Specialty's Operating Margin % for the quarter that ended in Dec. 2019 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2019 )/Revenue (Q: Dec. 2019 )
=-20.955/91.02
=-23.02 %

* 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.


School Specialty Operating Income Related Terms


School Specialty Operating Income Historical Data

* Premium members only.

The historical data trend for School Specialty'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.

School Specialty Operating Income Chart

School Specialty Annual Data
Trend Apr10 Apr11 Apr12 Apr13 Apr14 Apr15 Dec16 Dec17 Dec18 Dec19
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.32 24.70 25.28 6.35 -10.32

School Specialty Quarterly Data
Jan15 Apr15 Jul15 Oct15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19
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 -15.47 -19.65 2.15 28.13 -20.96
SCOO
12GF Score
School Specialty Inc SCOO
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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School Specialty 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. 2019 adds up the quarterly data reported by the company within the most recent 12 months, which was $-10.3 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 $-10.3 Mil mean?
School Specialty (SCOO) has a Operating Income of $-10.3 Mil as of Dec. 2019. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on School Specialty and its competitors.
Is School Specialty's Operating Income too high?
School Specialty's current Operating Income is $-10.3 Mil. Overall, School Specialty has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does School Specialty's Operating Income compare to PIRRQ and JADG?
School Specialty's Operating Income of $-10.3 Mil can be compared against companies in the Retail - Cyclical 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 Retail - Cyclical company?
A good Operating Income depends on the Retail - Cyclical 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 School Specialty and its competitors. School Specialty's current Operating Income is $-10.3 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is School Specialty stock overvalued right now?
School Specialty (SCOO) has a current Operating Income of $-10.3 Mil. The current Operating Income is $-10.3 Mil. School Specialty's overall GF Score™ is 12/100. 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 School Specialty (SCOO), the current Operating Income is $-10.3 Mil as of Dec. 2019. 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.

School Specialty Business Description

Address W6316 Design Drive, Greenville, WI, USA, 54942
School Specialty Inc is a distributor of supplies, furniture, technology products, supplemental learning products, and curriculum solutions, primarily to the education marketplace. Its operating business segments are Distribution and Curriculum. The company generates maximum revenue from the Distribution Segment. Its Distribution segment offers products primarily to the PreK-12 education market that include basic classroom supplies and office products, instructional materials, indoor and outdoor furniture and equipment, physical education equipment, classroom technology, and planning and organizational products.
12GF Score

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Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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