Winston Pharmaceuticals (Winston Pharmaceuticals) Operating Income : $-2.42 Mil (TTM As of Mar. 2010)

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What is Winston Pharmaceuticals Operating Income?

Winston Pharmaceuticals's Operating Income for the three months ended in Mar. 2010 was $-0.46 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2010 was $-2.42 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Winston Pharmaceuticals's Operating Income for the three months ended in Mar. 2010 was $-0.46 Mil. Winston Pharmaceuticals's Revenue for the three months ended in Mar. 2010 was $0.32 Mil. Therefore, Winston Pharmaceuticals's Operating Margin % for the quarter that ended in Mar. 2010 was -145.74%.

Winston Pharmaceuticals'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. Winston Pharmaceuticals's annualized ROC % for the quarter that ended in Mar. 2010 was -977.78%. Winston Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2010 was -14,215.38%.

Winston Pharmaceuticals Operating Income Historical Data

The historical data trend for Winston Pharmaceuticals'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.

Winston Pharmaceuticals Operating Income Chart

Winston Pharmaceuticals Annual Data

Trend

Sep05

Sep06

Sep07

Dec08

Dec09

Operating Income

-0.22

-0.43

-0.22

-5.23

-2.74

Winston Pharmaceuticals Quarterly Data
	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10
Operating Income	Get a 7-Day Free Trial														-0.79	-0.69	-0.70	-0.56	-0.46

Winston Pharmaceuticals 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 Mar. 2010 adds up the quarterly data reported by the company within the most recent 12 months, which was $-2.42 Mil.

Winston Pharmaceuticals (GREY:WPHM) Operating Income Explanation

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

Winston Pharmaceuticals's annualized ROC % for the quarter that ended in Mar. 2010 is calculated as:

	ROC % (Q: Mar. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2009 )	+	Invested Capital (Q: Mar. 2010 ))	/ count )
=	-1.848 * ( 1 - 0% )	/	( (0.347	+	0.031)	/ 2 )
=	-1.848	/	0.189
=	-977.78 %

where

	Invested Capital		(Q: Dec. 2009 )
=	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	))
=	1.676	-	0.871	-	( 1.563	-	max(0, 1.187	-	1.645	+	1.563	))
=	0.347

	Invested Capital		(Q: Mar. 2010 )
=	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	))
=	0.842	-	0.777	-	( 0.678	-	max(0, 0.777	-	0.811	+	0.678	))
=	0.031

Note: The Operating Income data used here is four times the quarterly (Mar. 2010) data.

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

Winston Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2010 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2010 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2009		Q: Mar. 2010
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-1.848	/	( ( (0.014 + max(-1.127, 0))	+	(0.012 + max(-0.644, 0)) )	/	2 )
=	-1.848	/	( ( 0.014	+	0.012 )	/	2 )
=	-1.848	/	0.013
=	-14,215.38 %

where Working Capital is:

	Working Capital		(Q: Dec. 2009 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.016	+	0	+	0.044)	-	(0.871	+	0.317	+	-0.00099999999999989)
=	-1.127

	Working Capital		(Q: Mar. 2010 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0.029	+	0.104)	-	(0.777	+	0	+	0)
=	-0.644

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2010) EBIT data.

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

Winston Pharmaceuticals's Operating Margin % for the quarter that ended in Mar. 2010 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2010 )	/	Revenue (Q: Mar. 2010 )
	=	-0.462	/	0.317
	=	-145.74 %

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.

Winston Pharmaceuticals Operating Income Related Terms

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Winston Pharmaceuticals (Winston Pharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Winston Pharmaceuticals Inc (GREY:WPHM) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

100 North Fairway Drive, Suite 134, Vernon Hills, IL, USA, 60061

Website

http://www.winstonlabs.com

Winston Pharmaceuticals Inc is a pharmaceutical company, which is engaged in the discovery and development of products for pain management. The company focuses on major pain indications such as episodic cluster headache, chronic migraine headache, neuropathic pain syndromes, osteo- and rheumatoid arthritis, and pain and inflammation in inflammatory bowel disease.

Executives

Frost Phillip Md Et Al	10 percent owner	4400 BISCAYNE BLVD, MIAMI FL 33137-3227
Frost Gamma Investments Trust	10 percent owner	4400 BISCAYNE BLVD, MIAMI FL 33137
Subbarao V Uppaluri	director	4400 BISCAYNE BOULEVARD, SUITE 1500, MIAMI FL 33137
Curtis Lockshin	director	4400 BISCAYNE BOULEVARD, SUITE 950, MIAMI FL 33137
Glenn L Halpryn	director	4400 BISCAYNE BOULEVARD, SUITE 950, MIAMI FL 33137
Steven Jerry Glauser	10 percent owner	1428 BRICKELL AVENUE, SUITE 105, MIAMI FL 33131
Noah M Silver	director, officer: Vice President	4400 BISCAYNE BOULEVARD, SUITE 950, MIAMI FL 33137
Alan Jay Weisberg	director, officer: Chief Financial Officer	2500 NORTH MILITARY TRAIL, SUITE 206, BOCA RATON FL 33431
Stephen Bittel	10 percent owner	4400 BISCAYNE BOULEVARD SUITE 950 MIAMI FL 33137

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