SOLE (Sole Elite Group) Operating Income: $ Mil (TTM As of Dec. 2014)


What is Sole Elite Group Operating Income?

Sole Elite Group SOLE Operating Income is $ Mil as of Dec. 2014.

Sole Elite Group's Operating Income for the six months ended in Dec. 2014 was $39.55 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Sole Elite Group's Operating Income for the six months ended in Dec. 2014 was $39.55 Mil. Sole Elite Group's Revenue for the six months ended in Dec. 2014 was $113.91 Mil. Therefore, Sole Elite Group's Operating Margin % for the quarter that ended in Dec. 2014 was 34.72%.

Sole Elite Group'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. Sole Elite Group's annualized ROC % for the quarter that ended in Dec. 2014 was 297.33%. Sole Elite Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2014 was 413.22%.

Sole Elite Group  (NAS:SOLE) Operating Income Explanation

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

Sole Elite Group's annualized ROC % for the quarter that ended in Dec. 2014 is calculated as:

ROC % (Q: Dec. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2013 ) + Invested Capital (Q: Dec. 2014 ))/ count )
=39.549 * ( 1 - 27.05% )/( (10.328 + 9.079)/ 2 )
=28.8509955/9.7035
=297.33 %

where

Invested Capital(Q: Dec. 2013 )
=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))
=40.273 - 9.052 - ( 20.893 - max(0, 11.357 - 35.153+20.893))
=10.328

Invested Capital(Q: Dec. 2014 )
=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))
=37.349 - 10.533 - ( 17.737 - max(0, 12.379 - 32.401+17.737))
=9.079

Note: The Operating Income data used here is one times the annual (Dec. 2014) data.

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

Sole Elite Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2014 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2014 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2013  Q: Dec. 2014
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=39.607/( ( (5.12 + max(5.208, 0)) + (4.711 + max(4.131, 0)) )/ 2 )
=39.607/( ( 10.328 + 8.842 )/ 2 )
=39.607/9.585
=413.22 %

where Working Capital is:

Working Capital(Q: Dec. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(10.67 + 3.343 + 0.247) - (9.052 + 0 + 0)
=5.208

Working Capital(Q: Dec. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(12.548 + 1.813 + 0.303) - (10.533 + 0 + 0)
=4.131

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Dec. 2014) EBIT data.

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

Sole Elite Group's Operating Margin % for the quarter that ended in Dec. 2014 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2014 )/Revenue (Q: Dec. 2014 )
=39.549/113.912
=34.72 %

* 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.

Sole Elite Group Operating Income Related Terms

Sole Elite Group Operating Income Historical Data

* Premium members only.

The historical data trend for Sole Elite 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.

Sole Elite Group Operating Income Chart

Sole Elite Group Annual Data
Trend Dec12 Dec13 Dec14
Operating Income
19.38 29.19 39.55

Sole Elite Group Semi-Annual Data
Dec12 Dec13 Dec14
Operating Income 19.38 29.19 39.55

Sole Elite 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.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Dec. 2014 was $ 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 $ Mil mean?
Sole Elite Group (SOLE) has a Operating Income of $ Mil as of Dec. 2014. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Sole Elite Group and its competitors.
Is Sole Elite Group's Operating Income too high?
Sole Elite Group's current Operating Income is $ Mil.
How does Sole Elite Group's Operating Income compare to FORD and JCLY?
Sole Elite Group's Operating Income of $ Mil can be compared against companies in the Manufacturing - Apparel & Accessories 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 Manufacturing - Apparel & Accessories company?
A good Operating Income depends on the Manufacturing - Apparel & Accessories 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 Sole Elite Group and its competitors. Sole Elite Group's current Operating Income is $ Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sole Elite Group stock overvalued right now?
Sole Elite Group (SOLE) has a current Operating Income of $ Mil. The current Operating Income is $ 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 Sole Elite Group (SOLE), the current Operating Income is $ Mil as of Dec. 2014. 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.

Sole Elite Group Business Description

Sole Elite Group Ltd was formed on December 10, 2014. The Company, through its subsidiaries, is engaged in the business of designing, producing and selling shoe soles. It has four product lines: RB soles, MD soles, single color IP sole and dual color IP sole products. Its manufacturing facilities in China are located in Jinjiang, Fujian Province, which has a high concentration of footwear industry participants. Sports shoe soles are made of various materials, such as EVA, RB, PU, TPE, and TPU. The core materials of shoe soles are EVA and RB. The principal raw materials used in the production of its products are EVA, rubber, TPU, color dyes and other chemical additives. Its raw materials are sourced suppliers in the PRC located in Quanzhou, Fujian Province, which is close to its production facilities. It sells products to sportswear manufacturers that are based in China, including a number of companies in the athletic wear market, including Li-Ning, 361º, ERKE and Anta. It also sells products to OEM footwear companies for international athletic brands, such as Taiwan Ching Luh, which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour in Asia. Customers use its products as components in the athletic footwear that it sells to end consumers, athletic wear companies and shoe distributors. Its customer includes Fujian Ching Luh Shoes Co., Ltd., which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour. Its direct competition comes from various shoe sole production companies in China, such as Multi Sports Holding Ltd., Victory New Materials Limited Company, Fenghua SoleTech AG, Tai Ya Shoes Co., Ltd., Mao Tai (Fujian) Soles Co., Ltd. and Xing Quan International Sports Holdings Limited. It currently hold four PRC patents. The Company is subject to all China's national and local laws and regulations, including those related to environmental protection, foreign currency, property ownership and taxation.