ZDEC (Zenovia Digital Exchange) Operating Income: $-0.12 Mil (TTM As of Mar. 2015)


What is Zenovia Digital Exchange Operating Income?

Zenovia Digital Exchange ZDEC Operating Income is $-0.12 Mil as of Mar. 2015.

Zenovia Digital Exchange's Operating Income for the three months ended in Mar. 2015 was $-0.11 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was $-0.12 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Zenovia Digital Exchange's Operating Income for the three months ended in Mar. 2015 was $-0.11 Mil. Zenovia Digital Exchange's Revenue for the three months ended in Mar. 2015 was $0.01 Mil. Therefore, Zenovia Digital Exchange's Operating Margin % for the quarter that ended in Mar. 2015 was -1,312.50%.

Zenovia Digital Exchange'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. Zenovia Digital Exchange's annualized ROC % for the quarter that ended in Mar. 2015 was -147.63%. Zenovia Digital Exchange's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2015 was -237.29%.

Zenovia Digital Exchange  (OTCPK:ZDEC) Operating Income Explanation

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

Zenovia Digital Exchange's annualized ROC % for the quarter that ended in Mar. 2015 is calculated as:

ROC % (Q: Mar. 2015 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2014 ) + Invested Capital (Q: Mar. 2015 ))/ count )
=-0.42 * ( 1 - 0% )/( (0.233 + 0.336)/ 2 )
=-0.42/0.2845
=-147.63 %

where

Invested Capital(Q: Dec. 2014 )
=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))
=0.088 - 0.006 - ( 0.045 - max(0, 0.206 - 0.055+0.045))
=0.233

Invested Capital(Q: Mar. 2015 )
=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))
=0.387 - 0.01 - ( 0.041 - max(0, 0.21 - 0.362+0.041))
=0.336

Note: The Operating Income data used here is four times the quarterly (Mar. 2015) data.

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

Zenovia Digital Exchange's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2015 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2015 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2014  Q: Mar. 2015
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-0.42/( ( (0.033 + max(-0.004, 0)) + (0.025 + max(0.296, 0)) )/ 2 )
=-0.42/( ( 0.033 + 0.321 )/ 2 )
=-0.42/0.177
=-237.29 %

where Working Capital is:

Working Capital(Q: Dec. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0.002) - (0.006 + 0 + -2.7755575615629E-17)
=-0.004

Working Capital(Q: Mar. 2015 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0.306) - (0.01 + 0 + -2.7755575615629E-17)
=0.296

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2015) EBIT data.

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

Zenovia Digital Exchange's Operating Margin % for the quarter that ended in Mar. 2015 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2015 )/Revenue (Q: Mar. 2015 )
=-0.105/0.008
=-1,312.50 %

* 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.

Zenovia Digital Exchange Operating Income Related Terms

Zenovia Digital Exchange Operating Income Historical Data

* Premium members only.

The historical data trend for Zenovia Digital Exchange'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.

Zenovia Digital Exchange Operating Income Chart

Zenovia Digital Exchange Annual Data
Trend Dec12 Dec13 Dec14
Operating Income
-0.14 -0.07 -0.01

Zenovia Digital Exchange Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15
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 -0.00 0.01 -0.01 -0.02 -0.11

Zenovia Digital Exchange 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. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.12 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 $-0.12 Mil mean?
Zenovia Digital Exchange (ZDEC) has a Operating Income of $-0.12 Mil as of Mar. 2015. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Zenovia Digital Exchange and its competitors.
Is Zenovia Digital Exchange's Operating Income too high?
Zenovia Digital Exchange's current Operating Income is $-0.12 Mil.
How does Zenovia Digital Exchange's Operating Income compare to EPXY and STTH?
Zenovia Digital Exchange's Operating Income of $-0.12 Mil can be compared against companies in the Software 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 Software company?
A good Operating Income depends on the Software 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 Zenovia Digital Exchange and its competitors. Zenovia Digital Exchange's current Operating Income is $-0.12 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenovia Digital Exchange stock overvalued right now?
Zenovia Digital Exchange (ZDEC) has a current Operating Income of $-0.12 Mil. The current Operating Income is $-0.12 Mil. 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 Zenovia Digital Exchange (ZDEC), the current Operating Income is $-0.12 Mil as of Mar. 2015. 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.

Zenovia Digital Exchange Business Description

Address 3141 Fairview Park Drive, Suite 160, Falls Church, VA, USA, 22042
Zenovia Digital Exchange Corp designs and assembles motorsport racing vehicles for its own use and plans to compete in organized racing events. The company generates revenue from the leasing of race truck chassis and its motor coach to motorsports organizations competing in the NASACAR Camping World Truck Series.