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WSTL (Westell Technologies) Operating Income : $0.42 Mil (TTM As of Sep. 2024)


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What is Westell Technologies Operating Income?

Westell Technologies's Operating Income for the six months ended in Sep. 2024 was $0.42 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $0.42 Mil.

Warning Sign:

Westell Technologies Inc has never been profitable in the past 3 years. It lost money every year.

Operating Margin % is calculated as Operating Income divided by its Revenue. Westell Technologies's Operating Income for the six months ended in Sep. 2024 was $0.42 Mil. Westell Technologies's Revenue for the six months ended in Sep. 2024 was $18.58 Mil. Therefore, Westell Technologies's Operating Margin % for the quarter that ended in Sep. 2024 was 2.28%.

Warning Sign:

Westell Technologies Inc operating margin has been in a 5-year decline. The average rate of decline per year is -6.4%.

Westell Technologies's 5-Year average Growth Rate for Operating Margin % was -6.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Westell Technologies's annualized ROC % for the quarter that ended in Sep. 2024 was 4.76%. Westell Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 5.35%.


Westell Technologies Operating Income Historical Data

The historical data trend for Westell Technologies'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.

Westell Technologies Operating Income Chart

Westell Technologies Annual Data
Trend Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.72 -1.29 -6.90 -9.28 -4.16

Westell Technologies Semi-Annual Data
Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep22 Sep23 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 -1.81 -2.34 0.93 1.33 0.42

Westell Technologies 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 semi-annually data reported by the company within the most recent 12 months, which was $0.42 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.


Westell Technologies  (OTCPK:WSTL) Operating Income Explanation

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

Westell Technologies'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: Sep. 2023 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=0.848 * ( 1 - 3.38% )/( (18.505 + 15.917)/ 2 )
=0.8193376/17.211
=4.76 %

where

Note: The Operating Income data used here is two times the semi-annual (Sep. 2024) data.

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

Westell Technologies'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: Sep. 2023  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=0.848/( ( (1.438 + max(15.612, 0)) + (1.077 + max(13.55, 0)) )/ 2 )
=0.848/( ( 17.05 + 14.627 )/ 2 )
=0.848/15.8385
=5.35 %

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)
=(8.619 + 9.806 + 0.747) - (2.221 + 0.535 + 0.804)
=15.612

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(8.502 + 8.784 + 0.583) - (3.155 + 0.356 + 0.808)
=13.55

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2024) EBIT data.

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

Westell Technologies'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 )
=0.424/18.584
=2.28 %

* 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.


Westell Technologies Operating Income Related Terms

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


Westell Technologies Business Description

Traded in Other Exchanges
N/A
Address
750 North Commons Drive, Aurora, IL, USA, 60504
Westell Technologies Inc is a provider of wireless network infrastructure solutions. It is organized into the following operating segments, In-Building Wireless (IBW), Intelligent Site Management (ISM), and Communications Network Solutions (CNS). The majority of its revenue is generated from the CNS segment which includes solutions like a broad range of hardened network infrastructure offerings suitable for both indoor and outdoor use. The offerings consist of integrated cabinets, power distribution products, copper and fiber network connectivity products, and fiber access products. Geographically, it derives a majority of its revenue from the United States of America.
Executives
Cary B Wood director 425 NORTH MARTINGALE ROAD, SUITE 1000, SCHAUMBURG IL 60173
Mark A Zorko director 9265 FAWN LAKE DR, RALEIGH NC 27617
Penny Robert C Iii director, 10 percent owner 750 NORTH COMMONS DRIVE AURORA IL 60504
Scott C Chandler director 9635 MAROON CIRCLE SUITE 400 ENGLEWOOD CO 80112
Robert W Foskett director, 10 percent owner 750 NORTH COMMONS DRIVE AURORA IL 60504
Kirk R Brannock director 750 NORTH COMMONS DRIVE AURORA IL 60504
Timothy L Duitsman director, officer: President & CEO 750 N COMMONS DR AURORA IL 60504
Jeniffer L Jaynes officer: Interim CFO 750 N COMMONS DRIVE AURORA IL 60504
Jesse Swartwood officer: SVP, Worldwide Sales 750 N. COMMONS DRIVE AURORA IL 60504
Alfred S John officer: President & CEO 750 N COMMONS DRIVE AURORA IL 60504
Thomas P. Minichiello officer: SVP,CFO,Treasurer,Secretary 750 N. COMMONS DRIVE, AURORA IL 60504
Dennis O Harris director 750 NORTH COMMONS DRIVE AURORA IL 60504
Matthew B Brady officer: President & CEO 750 N COMMONS DR, AURORA IL 60504
Michael T Moran officer: SVP, IBW 750 N COMMONS DRIVE AURORA IL 60504
Jeannie Diefenderfer director C/O MRV COMMUNICATIONS, INC., 20415 NORDHOFF STREET, CHATSWORTH CA 91311

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