Armstrong Flooring (STU:2AS) Operating Income: €-74.0 Mil (TTM As of Dec. 2021)


STU:2AS Armstrong Flooring Inc STU:2AS
12 GF Score
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What is Armstrong Flooring Operating Income?

Armstrong Flooring STU:2AS 12 Operating Income is €-74.0 Mil as of Dec. 2021. GuruFocus rates STU:2AS with a GF Score™ of 12/100.

Armstrong Flooring's Operating Income for the three months ended in Dec. 2021 was €-19.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2021 was €-74.0 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Armstrong Flooring's Operating Income for the three months ended in Dec. 2021 was €-19.0 Mil. Armstrong Flooring's Revenue for the three months ended in Dec. 2021 was €145.5 Mil. Therefore, Armstrong Flooring's Operating Margin % for the quarter that ended in Dec. 2021 was -13.08%.

Armstrong Flooring'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. Armstrong Flooring's annualized ROC % for the quarter that ended in Dec. 2021 was -22.21%. Armstrong Flooring's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2021 was -34.11%.

Armstrong Flooring  (STU:2AS) Operating Income Explanation

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

Armstrong Flooring's annualized ROC % for the quarter that ended in Dec. 2021 is calculated as:

ROC % (Q: Dec. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2021 ) + Invested Capital (Q: Dec. 2021 ))/ count )
=-76.112 * ( 1 - 3.13% )/( (304.64 + 359.398)/ 2 )
=-73.7296944/332.019
=-22.21 %

where

Invested Capital(Q: Sep. 2021 )
=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))
=419.815 - 109.31 - ( 12.665 - max(0, 173.825 - 179.69+12.665))
=304.64

Invested Capital(Q: Dec. 2021 )
=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))
=457.545 - 114.077 - ( 8.585 - max(0, 214.701 - 198.771+8.585))
=359.398

Note: The Operating Income data used here is four times the quarterly (Dec. 2021) data.

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

Armstrong Flooring's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2021 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2021  Q: Dec. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-102.308/( ( (214.71 + max(73.015, 0)) + (220.365 + max(91.775, 0)) )/ 2 )
=-102.308/( ( 287.725 + 312.14 )/ 2 )
=-102.308/299.9325
=-34.11 %

where Working Capital is:

Working Capital(Q: Sep. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(55.93 + 109.31 + 17.085) - (109.31 + 0 + 0)
=73.015

Working Capital(Q: Dec. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(62.57 + 129.476 + 13.805) - (114.077 + 0 + -0.0010000000000048)
=91.775

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2021) EBIT data.

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

Armstrong Flooring's Operating Margin % for the quarter that ended in Dec. 2021 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2021 )/Revenue (Q: Dec. 2021 )
=-19.028/145.494
=-13.08 %

* 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.

Armstrong Flooring Operating Income Related Terms

Armstrong Flooring Operating Income Historical Data

* Premium members only.

The historical data trend for Armstrong Flooring'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.

Armstrong Flooring Operating Income Chart

Armstrong Flooring Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -10.73 -15.30 -53.46 -50.31 -76.82

Armstrong Flooring Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21
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 -26.47 -15.29 -15.19 -24.48 -19.03
STU:2AS
12GF Score
Armstrong Flooring Inc STU:2AS
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Armstrong Flooring 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. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was €-74.0 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 €-74.0 Mil mean?
Armstrong Flooring (STU:2AS) has a Operating Income of €-74.0 Mil as of Dec. 2021. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Armstrong Flooring and its competitors.
Is Armstrong Flooring's Operating Income too high?
Armstrong Flooring's current Operating Income is €-74.0 Mil. Overall, Armstrong Flooring has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Armstrong Flooring's Operating Income compare to AEHL and CARR?
Armstrong Flooring's Operating Income of €-74.0 Mil can be compared against companies in the Construction 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 Construction company?
A good Operating Income depends on the Construction 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 Armstrong Flooring and its competitors. Armstrong Flooring's current Operating Income is €-74.0 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Armstrong Flooring stock overvalued right now?
Armstrong Flooring (STU:2AS) has a current Operating Income of €-74.0 Mil. The current Operating Income is €-74.0 Mil. Armstrong Flooring'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 Armstrong Flooring (STU:2AS), the current Operating Income is €-74.0 Mil as of Dec. 2021. 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.

Armstrong Flooring Business Description

Address 1770 Hempstead Road, Lancaster, PA, USA, 17605
Armstrong Flooring Inc designs, manufactures, sources, and sells resilient and wood flooring products, which are primarily used for construction and renovation of residential, commercial, and institutional buildings. It operates through two segments namely Resilient Flooring and Wood Flooring. The Resilient Flooring provides a range of floor coverings for homes and commercial buildings under the Armstrong brand and the Wood Flooring segment provides hardwood flooring products under the Armstrong and Bruce brand names. Geographically, the group operates its business in the United States and also has its presence internationally, of which a majority of the revenue is derived from the United States.
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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