Postmedia Network Canada (TSX:PNC.B) Operating Income : C$-3.7 Mil (TTM As of Aug. 2024)

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What is Postmedia Network Canada Operating Income?

Postmedia Network Canada's Operating Income for the three months ended in Aug. 2024 was C$7.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2024 was C$-3.7 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Postmedia Network Canada's Operating Income for the three months ended in Aug. 2024 was C$7.9 Mil. Postmedia Network Canada's Revenue for the three months ended in Aug. 2024 was C$93.2 Mil. Therefore, Postmedia Network Canada's Operating Margin % for the quarter that ended in Aug. 2024 was 8.51%.

Postmedia Network Canada'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. Postmedia Network Canada's annualized ROC % for the quarter that ended in Aug. 2024 was 24.40%. Postmedia Network Canada's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2024 was 43.21%.

Postmedia Network Canada Operating Income Historical Data

The historical data trend for Postmedia Network Canada'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.

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Postmedia Network Canada Operating Income Chart

Postmedia Network Canada Annual Data

Trend

Aug15

Aug16

Aug17

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Aug19

Aug20

Aug21

Aug22

Aug23

Aug24

Operating Income

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41.76

16.10

-7.36

-11.65

-3.69

Postmedia Network Canada Quarterly Data
	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24
Operating Income	Get a 7-Day Free Trial															-3.76	0.26	-9.12	-2.76	7.93

Postmedia Network Canada 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 Aug. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was C$-3.7 Mil.

Postmedia Network Canada (TSX:PNC.B) Operating Income Explanation

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

Postmedia Network Canada's annualized ROC % for the quarter that ended in Aug. 2024 is calculated as:

	ROC % (Q: Aug. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2024 )	+	Invested Capital (Q: Aug. 2024 ))	/ count )
=	31.704 * ( 1 - 0% )	/	( (123.344	+	136.535)	/ 2 )
=	31.704	/	129.9395
=	24.40 %

where

	Invested Capital		(Q: May. 2024 )
=	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	))
=	135.636	-	45.465	-	( 1.514	-	max(0, 90.261	-	57.088	+	1.514	))
=	123.344

	Invested Capital		(Q: Aug. 2024 )
=	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	))
=	148.924	-	36.625	-	( 2.454	-	max(0, 94.021	-	69.785	+	2.454	))
=	136.535

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

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

Postmedia Network Canada's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Aug. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: May. 2024		Q: Aug. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	27.552	/	( ( (60.18 + max(-7.729, 0))	+	(54.872 + max(12.476, 0)) )	/	2 )
=	27.552	/	( ( 60.18	+	67.348 )	/	2 )
=	27.552	/	63.764
=	43.21 %

where Working Capital is:

	Working Capital		(Q: May. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(40.027	+	2.528	+	13.019)	-	(45.465	+	15.42	+	2.418)
=	-7.729

	Working Capital		(Q: Aug. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(53.931	+	2.318	+	11.082)	-	(36.625	+	16.716	+	1.514)
=	12.476

When net working capital is negative, 0 is used.

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

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

Postmedia Network Canada's Operating Margin % for the quarter that ended in Aug. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Aug. 2024 )	/	Revenue (Q: Aug. 2024 )
	=	7.926	/	93.157
	=	8.51 %

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.

Postmedia Network Canada Operating Income Related Terms

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Postmedia Network Canada Business Description

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PNC.A:Canada

Address

365 Bloor Street East, Legal Department, 12th Floor, Toronto, ON, CAN, M4W 3L4

Website

https://www.postmedia.com

Postmedia Network Canada Corp is a holding company. It operates through the Newsmedia segment. The company's business consists of news and information gathering and dissemination operations, with products offered in local, regional and metropolitan markets in Canada through multiple print, online and mobile platforms. Postmedia's operations include an extensive distribution network, which also offers distribution services, for advertising flyers and parcels. The combination of these distribution platforms provides audiences with a variety of media through which to access and interact with Postmedia's content. The breadth of the company's reach and the diversity of its content enable advertisers to reach target audiences on a local, regional or national scale.

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