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WOLF (Wolfspeed) Operating Income : $-439.2 Mil (TTM As of Sep. 2024)


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What is Wolfspeed Operating Income?

Wolfspeed's Operating Income for the three months ended in Sep. 2024 was $-151.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $-439.2 Mil.

Warning Sign:

Wolfspeed Inc had lost money in 92% of the time over the past 12quarters.

Operating Margin % is calculated as Operating Income divided by its Revenue. Wolfspeed's Operating Income for the three months ended in Sep. 2024 was $-151.0 Mil. Wolfspeed's Revenue for the three months ended in Sep. 2024 was $194.7 Mil. Therefore, Wolfspeed's Operating Margin % for the quarter that ended in Sep. 2024 was -77.56%.

Warning Sign:

Wolfspeed Inc operating margin has been in a 5-year decline. The average rate of decline per year is -11.9%.

Wolfspeed's 5-Year average Growth Rate for Operating Margin % was -11.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Wolfspeed's annualized ROC % for the quarter that ended in Sep. 2024 was -11.13%. Wolfspeed's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was -22.79%.


Wolfspeed Operating Income Historical Data

The historical data trend for Wolfspeed'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.

Wolfspeed Operating Income Chart

Wolfspeed Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -189.70 -209.30 -119.70 -138.80 -372.00

Wolfspeed 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 -83.80 -82.70 -86.10 -119.40 -151.00

Wolfspeed 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 $-439.2 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.


Wolfspeed  (NYSE:WOLF) Operating Income Explanation

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

Wolfspeed'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 )
=-604 * ( 1 - -0.14% )/( (5285.4 + 5580.6)/ 2 )
=-604.8456/5433
=-11.13 %

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:

Wolfspeed'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 )
=-869.2/( ( (3652.3 + max(15, 0)) + (3959.3 + max(-46.8, 0)) )/ 2 )
=-869.2/( ( 3667.3 + 3959.3 )/ 2 )
=-869.2/3813.3
=-22.79 %

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)
=(144.6 + 461.2 + 74) - (524.6 + 62.3 + 77.9)
=15

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(143.6 + 467.9 + 124.1) - (601.7 + 62.9 + 117.8)
=-46.8

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 %:

Wolfspeed'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 )
=-151/194.7
=-77.56 %

* 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.


Wolfspeed Operating Income Related Terms

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


Wolfspeed Business Description

Address
4600 Silicon Drive, Durham, NC, USA, 27703
Wolfspeed Inc is involved in the manufacturing of wide bandgap semiconductors. It is focused on silicon carbide and gallium nitride materials and devices for power and radio-frequency (RF) applications. The company serves applications such as transportation, power supplies, inverters, and wireless systems. Geographically, it derives a majority of its revenue from Europe and the rest from the United States, China, Hong Kong, Asia Pacific, and other regions.
Executives
Glenda Dorchak director C/O MELLANOX TECHNOLOGIES, INC., 350 OAKMEAD PARKWAY, SUITE 100, SUNNYVALE CA 94085
Darren R Jackson director C/O BEST BUY INC, 7075 FLYING CLOUD DR, EDEN PRAIRIE MN 55344
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Le Duy Loan T director C/O NATIONAL INSTRUMENTS, 11500 MOPAC BLDG B, AUSTIN TX 78759
Marvin Riley director 5605 CARNEGIE BLVD., STE. 500, CHARLOTTE NC 28209
John B Replogle director C/O SEALY CORPORATION, ONE OFFICE PARKWAY, TRINITY NC 27370
Neill Reynolds officer: Executive Vice President & CFO 4600 SILICON DR, DURHAM NC 27703
Gregg A Lowe director, officer: PRESIDENT, CEO AND DIRECTOR 400 W CESAR CHAVEZ STREET, AUSTIN TX 78701
Clyde Hosein director C/O INTEGRATED DEVICE TECHNOLOGY, INC., 6024 SILVER CREEK VALLEY ROAD, SAN JOSE CA 95138
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John C Hodge director C/O SILICON IMAGE, INC., 1060 E. ARQUES AVE., SUNNYVALE CA 94085
David Todd Emerson officer: EVP, GM LED 4600 SILICON DRIVE, DURHAM NC 27703
Michael E Mcdevitt officer: INTER. CHIEF FINANCIAL OFFICER 713 WALCOTT WAY, CARY NC 27519
Daniel J Castillo officer: EVP Cree & President-Lighting 2645 SILVER CRESCENT DRIVE, CHARLOTTE NC 28273