Virgin Galactic Holdings (Virgin Galactic Holdings) Operating Income : $-527.11 Mil (TTM As of Dec. 2023)

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What is Virgin Galactic Holdings Operating Income?

Virgin Galactic Holdings's Operating Income for the three months ended in Dec. 2023 was $-109.87 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-527.11 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Virgin Galactic Holdings's Operating Income for the three months ended in Dec. 2023 was $-109.87 Mil. Virgin Galactic Holdings's Revenue for the three months ended in Dec. 2023 was $2.81 Mil. Therefore, Virgin Galactic Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was -3,911.25%.

Warning Sign:

Virgin Galactic Holdings Inc operating margin has been in a 5-year decline. The average rate of decline per year is -8.8%.

Virgin Galactic Holdings's 5-Year average Growth Rate for Operating Margin % was -8.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Virgin Galactic Holdings's annualized ROC % for the quarter that ended in Dec. 2023 was -128.29%. Virgin Galactic Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -479.04%.

Virgin Galactic Holdings Operating Income Historical Data

The historical data trend for Virgin Galactic Holdings'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.

Virgin Galactic Holdings Operating Income Chart

Virgin Galactic Holdings Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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-213.26

-275.28

-319.54

-499.98

-527.11

Virgin Galactic Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															-153.31	-163.41	-139.57	-114.27	-109.87

Virgin Galactic Holdings 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. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-527.11 Mil.

Virgin Galactic Holdings (NYSE:SPCE) Operating Income Explanation

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

Virgin Galactic Holdings's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-439.468 * ( 1 - -0.23% )	/	( (323.446	+	363.249)	/ 2 )
=	-440.4787764	/	343.3475
=	-128.29 %

where

	Invested Capital		(Q: Sep. 2023 )
=	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	))
=	1267.984	-	48.456	-	( 997.077	-	max(0, 180.139	-	1076.221	+	997.077	))
=	323.446

	Invested Capital		(Q: Dec. 2023 )
=	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	))
=	1179.517	-	51.099	-	( 874.037	-	max(0, 185.66	-	950.829	+	874.037	))
=	363.249

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

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

Virgin Galactic Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-402.088	/	( ( (74.066 + max(-100.995, 0))	+	(93.806 + max(-108.868, 0)) )	/	2 )
=	-402.088	/	( ( 74.066	+	93.806 )	/	2 )
=	-402.088	/	83.936
=	-479.04 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	17.062	+	62.082)	-	(48.456	+	97.923	+	33.76)
=	-100.995

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	16.301	+	60.491)	-	(51.099	+	97.841	+	36.72)
=	-108.868

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

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

Virgin Galactic Holdings's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	-109.867	/	2.809
	=	-3,911.25 %

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.

Virgin Galactic Holdings Operating Income Related Terms

Thank you for viewing the detailed overview of Virgin Galactic Holdings's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Virgin Galactic Holdings (Virgin Galactic Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Virgin Galactic Holdings Inc (NYSE:SPCE) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

SPCE:Mexico 0QL:Germany

Address

1700 Flight Way, Tustin, CA, USA, 92782

Website

https://www.virgingalactic.com

Virgin Galactic Holdings Inc is a United States-based vertically integrated aerospace company pioneering human spaceflight for private individuals & researchers, and it also manufactures advanced air and space vehicles. Using its technologies, it is developing a spaceflight system designed to offer its customers a unique, multi-day, and transformative experience. This culminates in a spaceflight that includes views of Earth from space and several minutes of weightlessness that will launch from Spaceport America, New Mexico.

Executives

Arcangeli Henio R Jr	director	C/O VIRGIN GALACTIC HOLDINGS, INC., 1700 FLIGHT WAY, TUSTIN CA 92782
Diana S. Strandberg	director	1700 FLIGHT WAY, TUSTIN CA 92782
Raymond E Mabus	director	C/O DANA INCORPORATED, 3939 TECHNOLOGY DRIVE, MAUMEE OH 43537
Aparna Chitale	officer: See Remarks	1700 FLIGHT WAY, TUSTIN CA 92782
Sarah E Kim	officer: See Remarks	C/O VIRGIN GALACTIC HOLDINGS, INC., 1700 FLIGHT WAY, TUSTIN CA 92782
Douglas T Ahrens	officer: See Remarks	215 MOFFETT PARK DRIVE, SUNNYVALE CA 94089
Michael A Colglazier	director, officer: See Remarks	C/O VIRGIN GALACTIC HOLDINGS, INC., 166 NORTH ROADRUNNER PARKWAY, SUITE 1C, LAS CRUCES NM 88011
Alistair Burns	officer: See Remarks	1700 FLIGHT WAY, TUSTIN CA 92782
Michelle Kley	officer: See Remarks	C/O VIRGIN GALACTIC HOLDINGS, INC., 166 NORTH ROADRUNNER PARKWAY, SUITE 1C, LAS CRUCES NM 88011
Wanda A Sigur	director	C/O VIRGIN GALACTIC HOLDINGS, INC., 166 NORTH ROADRUNNER PARKWAY, SUITE 1C, LAS CRUCES NM 88011
Virgin Investments Ltd	10 percent owner	LA MOTTE CHAMBERS, ST HELIER Y9 X0 JE1 1BJ
Craig S Kreeger	director	C/O VIRGIN GALACTIC HOLDINGS, INC., 166 NORTH ROADRUNNER PARKWAY 1C, LAS CRUCES NM 88011
Tina W Jonas	director	C/O PASSUR AEROSPACE, INC, ONE LANDMARK SQUARE, SUITE 1900, STAMFORD CT 06901
Swaminathan B. Lyer	officer: See Remarks	166 NORTH ROADRUNNER PARKWAY, SUITE 1C, LAS CRUCES NM 88011
Chamath Palihapitiya	director, 10 percent owner	THE SOCIAL-CAPITAL PARTNERSHIP, L.L.C., 506 SANTA CRUZ AVENUE, SUITE 300, MENLO PARK CA 94025