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SGRP (SPAR Group) Operating Income : $5.9 Mil (TTM As of Sep. 2024)


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What is SPAR Group Operating Income?

SPAR Group's Operating Income for the three months ended in Sep. 2024 was $-0.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $5.9 Mil.

Warning Sign:

SPAR Group Inc has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. SPAR Group's Operating Income for the three months ended in Sep. 2024 was $-0.6 Mil. SPAR Group's Revenue for the three months ended in Sep. 2024 was $37.8 Mil. Therefore, SPAR Group's Operating Margin % for the quarter that ended in Sep. 2024 was -1.51%.

Good Sign:

SPAR Group Inc operating margin is expanding. Margin expansion is usually a good sign.

SPAR Group's 5-Year average Growth Rate for Operating Margin % was 9.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. SPAR Group's annualized ROC % for the quarter that ended in Sep. 2024 was -0.60%. SPAR Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was -28.94%.


SPAR Group Operating Income Historical Data

The historical data trend for SPAR Group'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.

SPAR Group Operating Income Chart

SPAR Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.19 9.72 8.66 7.84 9.81

SPAR Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.54 3.12 2.42 0.97 -0.57

SPAR Group 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. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $5.9 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.


SPAR Group  (NAS:SGRP) Operating Income Explanation

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

SPAR Group's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-2.28 * ( 1 - 90.89% )/( (34.853 + 34.188)/ 2 )
=-0.207708/34.5205
=-0.60 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

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

SPAR Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-7.856/( ( (3.621 + max(22.062, 0)) + (2.98 + max(25.621, 0)) )/ 2 )
=-7.856/( ( 25.683 + 28.601 )/ 2 )
=-7.856/27.142
=-28.94 %

where Working Capital is:

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(37.963 + 0 + 2.117) - (13.477 + 4.541 + 7.105427357601E-15)
=22.062

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(37.777 + 0 + 3.078) - (13.556 + 1.678 + 7.105427357601E-15)
=25.621

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

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

SPAR Group's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2024 )/Revenue (Q: Sep. 2024 )
=-0.57/37.788
=-1.51 %

* 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.


SPAR Group Operating Income Related Terms

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SPAR Group Business Description

Traded in Other Exchanges
Address
1910 Opdyke Court, Auburn Hills, MI, USA, 48326
SPAR Group Inc is a supplier of merchandising and other marketing services. It also provides range of services to retailers, consumer goods manufacturers and distributors around the globe. The company divides its operations into three reportable regional segments: Americas, which is comprised of United States, Canada, Brazil and Mexico; Asia-Pacific (APAC), which is comprised of Japan, China, and India; and Europe, Middle East and Africa (EMEA), which is comprised of South Africa. It generates maximum revenue from Americas.
Executives
Robert G/ Brown director, 10 percent owner, officer: Chairman, Chief Executive Offi
Spar Business Services Inc other: Affiliated with Robert G Brown 7711 N MILITARY TRAIL, SUITE 1000, WEST PALM BEACH FL 33410
Williams H Bartels director, 10 percent owner, officer: Vice Chairman
Pato Antonio Calisto officer: Chief Financial Officer C/O SPAR GROUP, INC., 1910 OPDYKE COURT, AUBURN HILLS MI 48326
Sean Whelan director C/O ZOMEDICA CORP., 100 PHOENIX DRIVE, SUITE 125, ANN ARBOR MI 48108
Michael Wager director 100 BURTT ROAD, SUITE 115, BOSTON MA 01810
Kori Belzer officer: Chief Operations Officer SPAR GROUP INC, 580 WHITE PLAINS RD., TARRYTOWN NY 10591
Fay Devriese officer: Chief Financial Officer C/O SPAR GROUP, INC., 1910 OPDYKE COURT, AUBURN HILLS MI 48326
Ronald Wayne Lutz officer: Chief Global CommercialOfficer C/O SPAR GROUP, INC., 1910 OPDYKE COURT, AUBURN HILLS MI 48326
William Linnane officer: Chief Strategy & GrowthOfficer C/O SPAR GROUP, INC., 1910 OPDYKE COURT, AUBURN HILLS MI 48326
Arthur H Baer director 61 BUSHNELL ROAD, HILLSDALE NY 12529
Mike R. Matacunas director, officer: Chief Executive Officer 500 VOLVO PARKWAY, CHESAPEAKE VA 23320
James Richard Brown director C/O SPAR GROUP, INC., 1910 OPDYKE COURT, AUBURN HILLS MI 48326
Igor Novgorodtsev director C/O SPAR GROUP, INC. 333 WESTCHESTER AVE, SOUTH BUILDING, SUITE 204, WHITE PLAINS NY 10604
James R Segreto officer: Controller C/O SPAR GROUP INC, 580 WHITE PLAINS RD, TARRYTOWN NY 10591